Share prices rise, strong cash flow emerges

27-May-2021 Intellasia | Vietnamnet | 5:02 AM Print This Post

Vietnam’s stock market made a spectacular breakthrough in the first months of the year with the VN Index staying at the 1,200 point threshold and some blue-chip prices strongly increasing.

Just within 1.5 months, THS shares of Thanh Hoa Song Da JSC saw prices hitting the ceiling at 23 trading sessions, increasing from VND6,200 per share on April 12 to VND51,600.

The sharp increase reflected the general uptrend of steel stocks, when the domestic and international steel prices were soaring.

TLH shares of Thep Tien Len have seen prices increasing by three times in the last three months, from VND6,000 to VND20,000 per share, while NKG of Nam Kim Steel by three times in the last six months and HPG of Hoa Phat Group by two times from VND35,000 in late 2020 to VND65,000. The two-fold increase was also reported for HSG of Hoa Sen Group.

The prices of bank, securities and real estate shares are also soaring.

TCB of Techcombank owned by billionaire Ho Hung Anh has seen the price reaching a historic peak of VND50,800 per share, while VPB of VP Bank was traded at VND67,800 per share on May 21, which was 2.5 times higher than six months ago.

The price of VCI of Ban Viet Securities, owned by the well-known businesswoman Nguyen Thanh Phuong, has nearly doubled to VND74,000 per share, while SSI of Nguyen Duy Hung’s Saigon Securities Incorporated has reached a new peak of VND39,000 per share.

Analysts note that while a lot of mid and small-cap stocks have turned down under profit-taking pressure, blue chips continued their upward trend.

Among real estate shares, Novaland’s shares are now at the unprecedented peak of VND140,000 per share after days of increases.

MSN of billionaire Nguyen Dang Quang’s Masan Group made a new record of VND113,000 per share after it announced a series of big deals.

While the VN Index hovers around the 1,280 point threshold, the VN30 Index, which shows performance of the 30 largest stocks, has surpassed the 1,400 point threshold, a 30 percent increase compared with early this year.

Cash flow to bluechips

According to Vietstock, the fact that the VN30 Index is forming the White Marubozu candlestick pattern after a period of going flat shows that buyers are at an advantage.

The trading volume is higher than previous days and higher than the 20-session average level, which shows an abundant cash flow.

Bank, steel, real estate and retail shares have made great contributions to the VN Index.

Steel shares, including HPG, have been hunted by investors thanks to the good business performance of steel manufacturers. Hoa Phat, for example, reported high post-tax profit of VND7 trillion in Q1, a 200 percent growth rate compared with the same period last year.

The major driving force of Hoa Phat is the skyrocketing steel price, including HRC and structural steel. Hoa Phat can be self-reliant on iron ore.

The short steel supply in the context of high demand thanks to economic stimulus packages all over the world is the reason behind the sharp price rise. Steel demand is extremely high in China in the post-pandemic and economic recovery period.

Though share prices are increasing sharply, billionaire Tran Dinh Long’s family members keep buying.

Long’s son, Tran Vu Minh, registered to buy 5 million HPG shares from May 21 to June 18. If succeeding, Minh would have to spend VND320 billion to increase his amount of shares to 53 million, or 1.6 percent of Hoa Phat shares.

In early 2020, Minh bought 40 million HPG shares, while Long bought 24 million.

Hoa Phat plans to obtain revenue of VND120 trillion in 2021 and post-tax profit of VND18 trillion, up by 33.15 percent and 33.27 percent, respectively, compared with 2020.

Many large corporations have made breakthrough steps in their business, which helped bluechip prices increase sharply.

Masan Group has revealed a plan to bring The CrownX into the bourse after integrating its consumer goods manufacturing and meat processing into the VinCommerce network.

Masan has made huge capital increases, including the sale of 5.5 percent of The CrownX to Alibaba group of investors for $400 million. The group plans to wrap up a strategic investment deal with other investors, worth $300-400million.

Bloomberg reported that Masan is considering raising $1 billion to invest in animal feed manufacturing, a division belonging to Masan MeatLife (MML).

VIC shares of dollar billionaire Pham Nhat Vuong’s Vingroup hit a new peak recently, having capitalisation value equal to that of many banks combined, following the news about VinFast’s IPO plan in the US.

The IPO is expected to bring $2-3 billion and the brand may have the value of $50 billion at minimum after listing.

Vingroup has issued $500 million of international bonds with the option to receive Vinhomes shares (VHM) at VND123,000 per share.

In the real estate sector, Novaland (NVL) has announced its total project development value of $45 billion. With three key projects, NVL plans to make a profit of $2 billion in 2021-2023.


Category: Stocks, Vietnam

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