[BSC Vietnam] Damrey: The Elephant In The Room (VRE) 08.11.2017 (DELAY)

Long Tran

Long Tran

Nov. 13, 2017 12:38 AM ET|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • Indexes, VN-Index +1.10%, Trading value: VND 5,614.78 bil ~ 249.89 USD mil, Derivative market: Trading value: VND 1,733 billion ~ USD 77.12 million
  • Vincom Retail (VRE) has been listed on HOSE at the price of 33,800 VND/share, which In the second trading day, it had a total put through transaction value of VND 16,861.
  • VRE own the biggest shopping malls in Vietnam with 40 malls over 1.1 m2 GFA and around 1000 tenants.
  • Damrey: The Elephant in the room. Storm Damrey which means elephant in Cambodian, slammed into Vietnam’s central coast. So please give support
  • The Blue Whale update at APEC.  ExxonMobil’s multi-billion dollar Blue Whale gas project with Vietnam is on track for final agreement by 2019

Dear valued clients and partners,

Market continued the uptrend after a record turnover early this week of over USD 700 mil. Vnindex closed over a percent higher than yesterday, pushed up by strong climb in real estate (+2.24%), IT (+1.11%) and finance (1.2%). Only 3/10 sectors end the day in red, lagged by industries (-1.82%).

Today’s Markets:

·       Indexes, VN-Index +1.10%, HNX-Index +0.91%, Upcom +0.87%

·       Active: HOSE: MBB, FLC, CII, DXG, HQC.  HNX: SHB, CEO, PVS, KLF, VCG.

·       Foreigner, Buy: VNM, TRA, BID, HPG, NKG. Sell: CII, MSN, SAB, DRC, STB.

·       Notice stocks: VNM, VJC, MBB, FPT, CII, HPG, VIC, VCB, PVS, SHB

·       Trading volume: ~ 215.74 million shares

·       Trading value: VND 5,614.78 bil ~ 249.89 USD mil

·       Foreigner transaction Net: 2.05 mil USD Sell 26.87 USD million and Buy 28.92 USD million

·       Derivative market: Trading value: VND 1,733 billion ~ USD 77.12 million

Corporate update:

·        Vincom Retail (VRE) has been listed on HOSE at the price of 33,800 VND/share, which In the second trading day, it had a total put through transaction value of VND 16,861 billion ~ USD 740 million; its buyer included Avanda Investment Management Pte, Dragon Capital, Genesis Investment Management LLP, GIC Pte, HSBC Asset Management (NASDAQ:UK), Karst Peak, RWC Asset Advisors (US), Templeton Investments and TT International. The stocks are partly held by Vingroup (VIC) and SaiDong (SDI)

VRE own the biggest shopping malls in Vietnam with 40 malls over 1.1 m2 GFA and around 1000 tenants. Its coverage sphere expanded throughout 21 provinces and city in Vietnam including various products formats such as Vincome Center, Vincom Mega Mall, Vincom Plaza and Vincom + . Its main revenue source comes from leasing its commercial malls, plazas, stores to various business partners. VRE offered two options of leasing rate as tenant: a fixed rate or a percentage rate of revenue. In 6M2017, 83.3% of leasing revenue was from fixed rate tenant. At present, the company is developing 73 unfinished malls project with a total GFA of 1.3 m2. In the future, VRE sets a target of 200 shopping malls with a total GFA of 2.39 m2 by 2021 and VND 6,096 billion of net operating income form property leasing by 2024.

Financial results. 9M2017, Net Revenue and PAT of the company reached VND 3,995 billion and VND 1,488 billion, which is 86.9% and 55.8% of its annual plan for 2017. Net Profit Margin from operation reached 37.3% in 9M2017.

Comments:                                                         

·         Damrey: The Elephant in the room. Storm Damrey which means elephant in Cambodian, slammed into Vietnam’s central coast with the strength of a category 2 hurricane (the biggest in 20 years) leaving over hundreds of dead and thousands of homes destroyed. Yesterday I was on the plane to DaNang and the helicopter view is wordless. We can only imagine how hard our people have to suffer. So please give support if you read this far of this email (link ). I believe it only take you 2-3 minutes to send support

·         The Blue Whale update at APEC.  ExxonMobil’s multi-billion dollar Blue Whale gas project with Vietnam is on track for final agreement by 2019, a top company executive said on Tuesday among APEC event. This project if successfully carry out will create huge demand for oil & gas services and push the power plant and oil chemical in the central of Vietnam.

Cheers

Long Tran

https://seekingalpha.com/instablog/13489352-long-tran-thang/5070196-bsc-vietnam-damrey-elephant-room-vre-08_11-2017-delay

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