KIDO plans the highest profit in 7 years
KIDO Group Joint Stock Company (HoSE: KDC) has just announced the document of the annual general meeting of shareholders (GMS) in 2023, the meeting is expected to be held on June 27 in the online form. .
In 2023, KIDO sets a target of net revenue of VND 15,000 billion, profit before tax of VND 900 billion, increasing by 20% and 76% respectively compared to last year.
If the above plans can be fulfilled, this will be the company’s record high revenue and highest profit in 7 years (excluding the sudden profit in 2015-2016 from selling confectionery business).
According to the orientation in 2023, KIDO will separate into 4 groups of industries, in which fish sauce is one of the important industries, besides cooking oil, ice cream and confectionery.
Regarding the plan to pay special dividends for 2022, according to the original plan, the company is expected to divide at the rate of 50% in cash (5,000 VND/share), equivalent to the amount to be spent 1,285 billion VND.
However, based on the actual situation as well as new investment plans this year, the Board of Directors (BOD) proposes to shareholders to consider adjusting the maximum special dividend rate of 10% in cash (1,000 VND/share) from undistributed after-tax profit at the end of 2022 is VND 1,619 billion. Thus, it is estimated that the group will spend more than 267 billion dong to pay this dividend. The expected implementation time is in the third and fourth quarters of 2023, after completing the issuance of ESOP shares. In 2023, the dividend is expected to be 6% in cash (VND 600/share).
KIDO leaders are also expected to apply for an adjustment to the stock bonus plan for existing shareholders, from equity to treasury shares.
Specifically, the company plans to use all 22.5 million treasury shares to distribute to existing shareholders at the ratio of 100:8.42. These shares will be freely transferable, the implementation time will be at the end of this year.
KIDO previously announced its financial statements for the first quarter of 2023 with net revenue of VND 2,060 billion, down 28% over the same period. Profit before tax was only nearly 6 billion dong, down sharply from 152 billion dong in the same period last year.
Notably, after deducting expenses, KIDO recorded an after-tax loss of more than 150 billion dong, a net loss of nearly 319 billion dong for shareholders of the parent company. This result is quite surprising when in the same period last year, KIDO made a profit of 121 billion dong. This is also the largest loss in KIDO’s business history since listing on the stock exchange.
The main reason for the above loss was the accounted corporate income tax of 156 billion dong. In the same period of 2022, KIDO’s tax expense was only VND 31 billion. However, KIDO’s first quarter report of 2023 did not explain in detail the above corporate income tax item.
Bamboo Capital plans to transfer more than 21 million shares in Tracodi to partners
The Board of Directors (BOD) of Bamboo Capital Group Joint Stock Company (HoSE: BCG) has just approved the sale of 21.04 million shares currently owned at Investment and Development Joint Stock Company. Transportation (Tracodi, HoSE: TCD).
The transaction is expected to be carried out from June 8 to July 7 according to the put-through transaction method. The purpose of the transaction is to transfer shares to the counterparty. However, the partner receiving the transfer of 21.04 TCD shares has not been disclosed by Bamboo Capital.
If the transaction is successful, the number of TCD shares owned by Bamboo Capital will decrease from more than 145 million shares (equivalent to 51.63%) to more than 124 million shares (44.15%).
In recent years, Tracodi has been supported by Bamboo Capital with resources to access major transport infrastructure projects. Currently, Tracodi is constructing a taxiway project at Phan Thiet airport, a project to build a residential area and an air conditioner lake adjacent to Duc Thang residential area, Hiep Hoa district (Bac Giang), a project to connect national highway 3 – Vo Nguyen Giap – Dong Anh (Hanoi), a project to build a factory for a large FDI enterprise in Long An.
Bamboo Capital leaders said that there are 3 major projects that Tracodi is focusing on working with provinces to be able to deploy in the period 2024 -2027: the Go Dau – Xa Mat highway project (Tay Ninh), the project Duc Hoa – Duc Hue route (Long An), provincial road project 935 Soc Trang.
In addition to Tracodi’s experience and construction capacity, the company said that one of the reasons Bamboo Capital is confident in promoting the infrastructure segment is because Tracodi owns the Antraco quarry.
This is one of the largest quarries in the Mekong Delta, specializing in providing construction stone products for the construction of bridges, roads, high-rise buildings… The advantage of owning a quarry will help Tracodi Actively source materials, reduce construction costs.
VN-Index rose for the 5th session in a row, steel and real estate stocks “surprised”
Real estate stocks (real estate) recorded an impressive performance with a series of strong gainers, two stocks that were in crisis, NVL and PDR, even hit the ceiling price. Following real estate stocks was steel stocks with very positive movements.
Session 7/6, VN-Index increased 1.23 points, or 0.11%, to 1,109.54 points. This was the 5th consecutive gaining session of this index.
Banking stocks were highly diverged as VCB fell 2.02%, BID down 1%, TCB down 0.31%, MBB down 0.49%, HDB down 1.04%, SHB down 1.6%, LPB increased by 2.28% while CTG increased by 0.7%, TPB increased by 1.74%, EIB increased by 2.39%, MSB increased by 1.56%.
Securities stocks also differentiated. Specifically, SSI decreased by 0.2%, VND decreased by 0.26%, HCM decreased by 0.54% but VCI increased by 0.14%, VIX increased by 3.35%, ORS increased by 1.01%, TVS reached the ceiling price.
The real estate group recorded a brilliant performance when most of the gainers gained, in which many strong gainers such as BCM gained 2.18% in value, KDH increased by 2.18%, DIG increased by 3.04%, and NLG increased in value. 3.24%, DXG up 2.01%, VCG up 2.98%, ITA up 5.86%, HHV up 4.38%, DXS up 4.25%, KHG up 3.59%, FCN up 5 ,26%; NVL, PDR, TCD, QCG, EVG all increased dramatically.
In the manufacturing group, steel stocks were the focus when HPG increased by 3.91%, HSG increased by 4.04%, NKG increased by 1.83%, and POM reached the ceiling price. Other manufacturing stocks lean more in the green.
Energy, aviation and retail stocks traded quite bleakly: GAS and POW fell 0.63% and 0.36% respectively while PGV and PLX both stood at reference prices; VJC fell 1.13% while HVN stood at the reference price; FRT gained 0.35%, MWG stood at the reference price and PNJ lost 0.27% of its value.
The whole HoSE had 241 stocks of increasing price, 62 stocks of standing at the reference price and 134 stocks of decreasing. Order-matching liquidity was high, reaching VND 16,516 billion.
Recommended stocks today 7/6: KDH, VIB and PET
ACBS evaluates KDH as a well-known real estate company in the mid- and high-end segments and always delivers on time. Accordingly, this unit recommends buying for KDH, the target price is VND 34,467/share with the expectation that the real estate market will gradually recover from the second half of 2023.
KDH: ACBS recommends buying, target price is VND34,467/share
Khang Dien Housing Investment and Trading Joint Stock Company (HoSE: KDH) has just announced mixed business results in the first quarter of 2023 with net revenue increasing 3 times over the same period to 425 billion dong but profit after tax decreased. down 33% to 201 billion dong. Revenue increased mainly due to the handover of about 20 villas at Classia project while profit decreased mainly due to the same period last year, which recorded more than VND 300 billion from re-evaluating the investment in acquiring 60% of Phuoc Company. Nguyen, thereby owning the 6.1ha Emeria project in Ho Chi Minh City. Thu Duc includes 616 apartments and 67 villas. Due to the difficult situation of the real estate market, the company only sold about 45 units at the Classia project in the first 4 months of 2023, resulting in a cumulative absorption rate of approximately 85%.
Near the end of May 2023, Keppel Group from Singapore and Keppel Foundation Vietnam announced a cooperation agreement with KDH in two adjacent housing projects with a total value of VND3,180 billion. Of which, Keppel owns 49% and KDH owns 51%. The two partners are expected to jointly develop more than 200 villas and more than 600 apartments in two projects Emeria (6.1ha) and Clarita (5.8ha) both located in Binh Trung Dong Ward, City. Thu Duc. Keppel estimates the total investment cost of these projects (including land) at around VND10,200 billion. Both projects have had land use rights and approved planning.
ACB Securities Company Limited (ACBS) believes that foreign capital investment in the real estate market during the current difficult time is normal and predictable thanks to the positive long-term industry outlook. KDH usually completes the project before the sale, so it needs capital during this period to speed up the construction. In addition, the company needs to recognize financial revenue from the sale of shares in the project to complete the profit plan in 2023 because the profit from the handover of the remaining villas at the Classia project is not enough.
However, ACBS still evaluates KDH as a well-known real estate company in the mid- and high-end segments with a dynamic leadership team, transparent project legality, beautiful design and on-time handover. Accordingly, this unit repeated its buy recommendation for KDH, with a target price of VND 34,467 per share with the expectation that the real estate market will gradually recover from the second half of 2023.
VIB: MBS recommends buying, reducing the target price to VND26,800/share
In the first quarter of 2023, Vietnam International Commercial Joint Stock Bank (HoSE: VIB) recorded a consolidated TOI of VND 4,929 billion (up 19.2% over the same period), of which net interest income and net external income profit reached 4,304 billion dong (up 22.4% over the same period) and 625 billion dong (up 0.8%). Net interest income grew y/y mainly thanks to increased NIM (30bps y/y) to 4.7% y/y while credit growth was negative 1.3% YTD. Although the main non-interest income segment, NFI, decreased slightly (down 4.5% y/y), but the gold and foreign exchange business reduced losses, leaving net non-interest income (NOI) flat.
During the period, VIB also made a provision of VND 668 billion (+68.2% y/y) due to a sharp increase in subprime debt over the same period and at the end of 2022. Operating expenses in the quarter. I/2023 reached 1,568 billion VND (up 7.4% over the same period), equivalent to the CIR rate of 31.8%.
This level of CIR has decreased by 350bps over the same period and by 250bps compared to the whole of 2022. Consolidated pre-tax profit in the first quarter of 2023 reached VND 2,693 billion (up 18.2% over the same period), reaching 22%. plan for the whole year.
The analysis report of MB Securities Company (MBS) shows that VIB’s asset quality as of March 31, 2023 has decreased compared to the end of 2022 when NPL increased sharply and LLR decreased. NPL and group 2 debt at the end of the first quarter of 2023 reached 3.64% and 5.43%, respectively, significantly increased compared to 2.45% and 4.38% at the end of 2022 and 2.39% and 3. 0.09% at the end of the first quarter of 2022. LLR also decreased from 53.9% as of December 31, 2023 to 38% as of March 31, 2023. This shows that VIB’s asset quality is following the industry’s general trend in the context of difficult liquidity.
VIB’s total assets as of 31/03/2023 reached VND 357,247 billion (up 4.2% y/y), mainly due to the increase in deposits at other credit institutions (up 9.3%) and money for loans to other credit institutions (up 40.1%) in the context of a slight decrease in credit growth. In addition, the securities portfolio also had a significant increase compared to the end of 2023.
In terms of mobilization, customer deposit growth was also flat compared to the end of 2022 and the main source of mobilization still came from the interbank market. Deposits of other credit institutions increased by 43.6% year-to-date. VIB’s LDR ratio, as calculated by MBS, at 31/03/2023 reached 72.3%, relatively low compared to the industry average. SMLR is also at the level required by the SBV at 28%.
MBS assesses that in the context of industry growth still facing many challenges, the granting of a high credit limit by the State Bank of Vietnam will put a lot of pressure on VIB’s leadership. In addition, the decrease in deposit interest rates in the first months of the second quarter of 2023 also made the mobilization activities not as expected.
With a large proportion of retail loans, a sharp increase in bad debt in the first quarter of 2023 is understandable for VIB. However, the size of each loan contract of VIB is relatively small (average value of each loan contract is <1 billion dong), so the bad debt release may take longer but with a lower intensity than the average loan contract. with loans to large corporate customers. MBS believes that bad debt is likely to trend down gradually in the rest of 2023.
Forecasting business results in 2023, MBS said that VIB will achieve TOI and consolidated pre-tax profit of VND 20,617 billion (up 14.2% over the same period) and VND 11,733 billion (up 10.9 percent year-on-year) respectively. % over the same period). Credit growth and customer deposit growth are forecast at 15.2% and 20.9%, respectively. NIM for the whole year of 2023 is forecast at 4.6%, a slight decrease of 10bps compared to the whole of 2022. NPL and Group 2 debt will reach 3% and 5.5% respectively, with provisioning/total ratio. outstanding loans reached 0.9%, higher than the rate of 0.6% in 2022. LLR is forecasted to reach 51.3%. ROE is forecast to drop to 26.6%.
Accordingly, MBS maintains its BUY recommendation for VIB shares, but adjusts its target price to VND26,800/share with a downward adjustment for the full year 2023 pre-tax profit compared to the most recent report.
PET: BVSC recommends neutral, target price 26,200 dong/share
PetroVietnam General Services Joint Stock Company (Petrosetco, HoSE: PET) has just announced its preliminary business results for April 2023 with net revenue increasing 6.4% year-on-year to VND1,586 billion, while pre-tax profit decreased by 25% over the same period, reaching 18 billion dong.
Cumulatively, PET’s net revenue in the first four months of the year decreased by 7.5% y/y to VND5,832 billion and pre-tax profit dropped sharply by 48.1% yoy to VND135 billion. With the above results, PET completed 34.4% / 22.8% respectively of the forecast for the whole year 2023 of Bao Viet Securities Company (BVSC).
PET’s daily revenue in April 2023 recovered by 7.7% month-on-month to VND1,490 billion (up 6.4% y/y), mainly thanks to the superior performance of the distribution segment.
In which, mobile revenue recovered encouragingly 45.7% month-on-month to 711 billion (a slight decrease of 4.3% over the same period). Most notably, PET was able to achieve cumulative mobile phone revenue growth in the first 4 months of 11%, to 2,757 billion, outperforming the weak overall market. This result is quite consistent with BVSC’s forecast of mobile phone revenue growth in 2023 of 12.0% over the same period.
The securities company also noted that PET’s stable mobile phone sales were led by Samsung’s improved competitive position and the recently signed Realme phone distribution contract.
Laptop revenue in 4 months decreased by 23.3% yoy, reaching 1,249 billion dong, which seems to be better than BVSC’s full year forecast of 3.3 trillion dong (down 33.0% yoy).
Gross profit margin in April 2023 was stable at 4% while pre-tax profit margin increased slightly to 1.1% compared to 1% in March 2023. 4-month pre-tax profit margin dropped sharply to 1.2% (but in line with BVSC’s forecast) compared to 2.1% in the same period last year, due to higher financial expenses and increased operating expenses. in a slow sales environment.
Accordingly, BVSC maintains its business result forecast for PET with a CAGR of net profit for the period 2023-2025 of 22.2%. With a strong increase in share price (50.8% since the beginning of the year), PET has reached the target price of BVSC. Valuation of the business at a reasonable level. BVSC maintains a neutral recommendation for this stock with a target price of VND26,200/share. BVSC also recommends investors to reconsider PET when the valuation is more attractive.