FDI attraction at a high record level, industrial zone’s infrastructure stocks simultaneously break through

18-Mar-2017 Intellasia | BizLIVE | 7:38 AM Print This Post

According to data of the Ministry of Planning and Investment, the FDI disbursement value ofVietnamin 2016 was at a record level of 15.8 billion USD, increasing 9 percent in comparison with the previous year. In the first two months of 2017, FDI disbursed capital continued recording positive figures with 1.6 billion USD.

Recently, industrial zone’s infrastructure stocks have been changing positively. At the end of the trading session on March 15th, NTC share of Nam Tan Uyen industrial zone recorded the market price of 57,200 VND, increasing by 53 percent in comparison with the beginning of the year, and it was one of the most positively traded stocks in the group of industrial zone’s real estate. Similarly, IDV stocks increased 22 percent, SZL increased 19 percent; D2D increased 19 percent; and LHG increased 10 percent, etc.

MH3 stocks of Binh Long Rubber industrial zone (Nam Tan Uyen industrial zone has 37 percent) have just been listed on Upcom in early March but have recorded the growth of 110 percent.

Benefit from the wave of FDI, business results grows positively

The recent breakthrough of industrial zone’s infrastructure stocks is importantly contributed by the FDI intoVietnam.

It can be said that the attraction of investment capital increasing in recent years has helped enterprises which operate in industrial zone’s infrastructure sector benefit greatly, specially enterprises in Binh Duong as the case of NTC.

At present, NTC is owning Nam Tan Uyen industrial zone in Binh Duong and has filled 98 percent. However, in the end of 2016, NTC was granted an addition of 346 hectares to expand and this was a big advantage of the business in attracting investment. Also in 2016, NTC recorded a profit of 131 billion VND – double as in the previous year. The above reasons partly explain the action of “sucking money” of NTC shares recently.

Similarly, IDV recorded 73.4 billion VND of net profit in 2016, equivalent to the growth of 53 percent. Last year, IDV signed a land leasing contract with Gold Star Rubber in Chau Son industrial zone and earned about 200 billion VND from this contract.

Long Hai also achieved a positive business result with the net profit in 2016 reached 162 billion VND, increasing by more than 2 times in comparison with the previous year thanks to the expansion of leased area. Last year, Long Hau also approved the construction of Long Hau 3 industrial zone with an area of nearly 124 hectares with a total investment of 1.102 trillion VND.

Another case was Kinh Bac when it also recorded impressive profit which is up to 712 billion VND in 2016. The positive business result of Kinh Bac was largely contributed by land leasing contracts of LG, Luxshare – ICT, JA Solar. In the first few months of 2017, Kinh Bac continued receiving a positive information that Hanwha Techwin Corporation invests a project in an area of 6 hectares in Que Vo industrial zone with total investment of 100 million USD. This is the second largest investment project licensed in Bac Ninh in 2017.

For Sonadezi Long Thanh, thanks to the favourable factory business, the company recorded net profit up to 103 billion VND, increasing 2.2 times in comparison with the previous year.

Besides the positive business results, the fact that industrial zone’s infrastructure enterprises pay stale dividends also attracts the investors.

Although industrial zone’s infrastructure sector is greatly benefiting but not every share brings happiness to the investors.

ITA of Tan Tao Group – a “brother” share with KBC is a typical example when it is continuously plunging down and the current market price is around 4,000 VND. ITA’s negative change is due to poor bussiness results. In 2016, ITA only reached 54 billion of profit, sharply decreasing 60 percent in comparison with 2015.

ITA share’s change is not really positive

Besides the business result, continuous dilution of shares as the case of ITA also makes the share price difficult to “head up”. Up to this time, ITA’s amount of shares in circulation have reached 940 million units and in addition, this share has just been removed from V.N.M ETF’ list in the first review in 2017.


Category: Stocks, Vietnam

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