Research Center

On Jun 27, Hoa Binh Construction (HBC) held the Annual General Meeting. The company presented to the investor the 2022 results as well as the 2023F business plan. In 2022, Hoa Binh announced revenue of VND14.15tn (+24%yoy) and a net loss of VND2.5tn. The Board of Director contributed this to a weak real-estate market, developers cash flow troubles and rising costs of material. HBC aims to resolve the operational issues with a financial and management overhaul.

PLX approved its conservative 2023F guidance of petroleum volume of 13mn ton (-7% yoy), VND190tn revenue (-38% yoy) and VND3.2tn PBT (+42% yoy). Shareholders approved a cash dividend of VND700/share for 2022, and targeted a cash dividend of VND1,000/share for 2023F.

Weak demand weighted continuously on MWG’s May business results, MWG recorded a 10% decrease yoy in revenue to VND10,297bn but was up +6% mom, prompting total revenue of MWG to reach VND59.3tn (-21% yoy) in 5M23.

FPT posted estimated 5M23 business results with revenue of VND19.9tn (+23% yoy) and PBT of VND3.6tn (+19% yoy), completing 38% and 40% of its 2023 guidance, respectively. In May-23, FPT Group achieved revenue of VND4.2tn (+29% yoy), and VND0.7tn PBT (+17% yoy).

According to Customs, the total May fertilizer export volume was nearly 155,000 tonnes (+17.5% mom, -3.13% yoy), equivalent to USD57mn (+17.36% mom, -46.32% yoy). The 5M23 Vietnam export pulled back in both volume 691,824 tonnes (-15.53% yoy) and value with USD289mn, -50.3% yoy. Observing the domestic market, urea price was trading around VND10,100/kg (+9% mom, -41% yoy) in May. The average urea price hovered around VND10,300/kg (-39.6% yoy) in 5M23. We maintain Neutral rating.

The prelim export turnover of Vietnam’s textile and garment swelled to USD2.92bn (+14.8% mom but fell 8.0% yoy) in May. The accumulated export value was disappointed again with US12,628bn (-16% yoy), weighting our dim hope of recovery. Despite the industry export value downturned in Apr (total industry export growth of USD2.54bn, -3.3% mom, -19.4% yoy), the listed companies diverged: VGG (USD37.74mn, +14.71% mom, -22.09% yoy, TNG, USD31.58mn (+15.73% mom, +27.28% yoy). GIL was not out of the wood yet (USD1.38mn, -15.38% mom, -93.42% yoy).

This monthly report on Vietnam steel production is intended to track the developments in the steel market. During May 23, we observed an impressive export volume (+51.9% yoy, +29.7% mom) while domestic sales volume showed an uptick of 5% mom

Total May steel sales volume posted 127,489 tonnes, rising by 5.1% yoy but dropping 1.9% mom. The FY8M23 (Oct 2023-Feb 2023) total sale decreased 34.1% yoy to 891,963 tonnes as steel pipes volume declined 21.0% yoy to 185,976 tonnes and steel coat fell 36.9% yoy to 705,987 tonnes.

Total May steel sales volume posted 77,447 tonnes, increasing 0.2% mom and decreasing 8.9% yoy. The 5M23 total sales volume came in at 349,414 tonnes, -19.8% yoy. In which, the steel coat volume declined 22.1% yoy to 286,699 tonnes and the steel pipes volume was down by 7.0% yoy to 62,715 tonnes.