Vinamilk says Jan-August profit $43 million

Vietnam's top dairy product maker, said on Tuesday it made a profit of 702 billion dong ($43.4 million), or 78 percent of its annual target, in the first eight months of this year.

Vinamilk had revenues of 4.37 trillion dong in the January-August period, or 58.8 percent of its annual target, the firm said in a statement of unaudited results.

It did not say if the profit was gross or net.

The Ho Chi Minh City-based firm also gave no comparative figures for the same period last year, but its January-August profit this year was already 9 percent higher than the net earnings in the first nine months of last year.

Vinamilk aims to raise its annual profit this year by 22.7 percent from 2006 to 898 billion dong on revenues of 7.43 trillion dong.

Shares in Vinamilk closed up 0.63 percent at 161,000 dong on the Ho Chi Minh Stock Exchange.

Source: Reuters

What’s the fate of 6 blue chips on HOSE?

Having the total capitalisation volume of VND120tril ($7.5bil), six share items, SJS, STB, FPT, VNM, PPC, and PVD, now account for one-third of the total listing market capitalisation.

Domestic and foreign investors always refer to the prices of the six blue chips when making investment decisions, considering these the barometer of the stock market.

Several days ago, foreign investors were given an unexpected gift: as the securities depository centre made a mistake in defining the foreign ownership ratio in Sacombank, foreign investors could freely purchase many more Sacombank shares. Though the depository centre announced its mistake, foreign investors decided not to sell Sacombank shares in order to reduce the foreign ownership ratio to 30% as required. The event shows the big attractiveness of Sacombank shares (STB).

In the last trading sessions, STB has led the market in transaction volume. However, as the market remains quiet, STB’s price did not increase, selling at VND53,000/share on August 28.

According to Bui Ngoc Tuoc, a securities expert, though STB has high liquidity and low P/E index, it has several shortcomings that may worry investors.

First, STB have been listed in the largest quantity on the market with listed 442mil, many of which have been additionally issued, and at the moments when the demand was lower than supply.

Second, STB has witnessed a lot of changes in staff, while members of management board and their relatives have continuously sold STB recently.

Third, investors still want to keep the ‘wait-and-see’ attitude as they want to know how Sacombank will perform when many foreign banks enter the market and more local banks are set up.

Mr Tuoc said that if the shortcomings could be fixed, STB would still deserve to be listed among investors’ portfolios.

Once the hottest share item on the bourse, SJS has surrendered its first position to another item though it remains influential. When Song Da Corporation (the parent group of SJS) sold 6mil SJS shares, big doubts were left among investors.

Vu Chi Tung, an investor on SSI trading floor, said that this was one of the factors that had prompted him and other investors not to keep SJS any more. “Song Da would not have sold SJS in large quantities if SJS had been actually promising,” he said.

The director of a securities company said that SJS would have difficulty retaining its previous position as the real estate boom was over. Meanwhile, several other real estate firms, which also have big competitiveness, are also going to make IPOs or list on the bourse.

The director said that the actual value of SJS would be somewhere between VND200-250,000/share. If the real estate market does not witness a new price fever, and the company does not have business plans which promise fat profit, SJS will not be able to return to the over VND300,000/share level.

Recently, Vinamilk (VNM) has revealed its intention of listing on a foreign bourse. Together with STB, VNM is a big name among the six blue chips most wanted by investors. If the government approves the raising of foreign ownership ratio, and VNM lists on foreign bourses, VNM price will skyrocket. However, there is always a big gap between expectations and reality.

FPT prices slid dramatically recently from their highest peak. Three reasons have been cited to explain the sharp price decreases 1. bad rumours about FPT, which were not addressed timely 2. TPG registered to sell a large quantity of FPT 3. Two members of FPT registered to sell a large volume of FPT also at that time. Whether FPT prices can recover in the time to come will depend on many factors, while FPT’s management board has committed not to sell shares until the year’s end.

PPC, though having the lowest P/E index among the group of six (less than 17), has the lowest price level, at VND52,500/share.

The paradox has been explained by Electricity Engineer Tran Vinh Nghi: outdated equipment and low management skills both make PPC’s value low.

Meanwhile, PVD has overly high P/E (over 74), while the new projects of the company have not shown efficiency; therefore, investors dare not inject mooney in PVD. Moreover, if wanting to make investment in oil and gas companies, investors will have more choices in the near future, when more oil and gas enterprises are equitised.

JP Morgan to advise Vinamilks listing abroad

Dairy company Vinamilk , Vietnam's largest listed firm, said on Friday it had picked JP Morgan to advise on its overseas listing, the first by a Vietnamese firm.

Vinamilk, or Vietnam Dairy Products Company, said in a statement issued through the Ho Chi Minh Stock Exchange that it had chosen JP Morgan as adviser after completing its assessment of bids on Thursday.

The Ho Chi Minh City-based firm did not say where it intended to list, but chief executive Mai Kieu Lien said in March it planned to list more than 8.85 million shares, or 5 percent of the company, on the Singapore stock market this year.

Vinamilk has a market value of $1.8 billion and its diary products and beverages have a market share of 75 percent. The firm also deals in real estate and provides warehousing and transport services.

Shares in Vinamilk fell 0.61 percent on Friday to 164,000 dong ($10).

Source: Reuters

Vinamilk says H1 profit jumps one third

Leading Vietnamese dairy product maker Vinamilk (VNM) said on Friday it made a net profit of 572 billion dong dong ($35.5 million) in the first six months of this year, up 36 percent from a year earlier.

The Ho Chi Minh City-based company's first half revenues jumped 10.7 percent from a year earlier to 3.122 trillion dong ($193.5 million), a company spokeswoman said.

"The result growth is in place thanks to increases in both our production and trading as well as financial investment," spokeswoman Le Quang Thanh Truc said by telephone.

Shares in Vinamilk fell 1.1 percent to 180,000 dong ($11) on Friday, valuing the firm at $1.93 billion and ranking it the largest on Vietnam's main stock market.

Truc said Vinamilk, the short name for Vietnam Dairy Products Company, had steady domestic growth of sales of all its products such as fresh milk, yogurt and powdered milk.

Vinamilk also produces beverages and deals in real estate and provides warehousing and transport services.

Truc gave no further details but said the company expected to publish a detailed report of its first-half operations next week.

In March, Vinamilk chief executive Mai Kieu Lien said the firm would list 8.85 million shares with a face value of $5.5 million on the Singapore stock market later this year.

Source: Reuters

Vietnam's Nutifood plans IPO, listing in Q4

Vietnam's fourth-largest dairy product maker, Nutifood, plans to hold a maiden share auction and list on the Ho Chi Minh Stock Exchange in the fourth quarter of this year, a company spokesman said on Friday.

"We are still working with our IPO advisor on the details of the auction and we aim to float Nutifood shares in the fourth quarter," he said.

The Ho Chi Minh City-based firm, which has a registered capital of 120 billion dong ($7.4 million), expects its profit to rise 69 percent to 44 billion dong ($2.7 million) this year from 2006.

"Our target is to grow our business by between 30 percent to 35 percent per year in the next couple of years," the spokesman said, adding the firm had set up about 60,000 outlets for its products which include milk powder and other nutrition drinks.

Nutifood shares are being traded on the unofficial market at around 60,000 dong to 90,000 dong ($3.7-$5.6) each.

The company plans to invest about 205 billion dong ($12.7 million) in a dairy processing plant in the southern province of Binh Duong near Ho Chi Minh City.

The domestic market for dairy products is dominated by Vinamilk (VNM) which commands a lion's share of 75 percent.

Other competitors include Dutch Lady Milk Industrie and Abbott Laboratories.

Where are billion dollars to be injected?

Vietnamese people heard recently that foreign investment funds are planning to pour several billion dollars worth of capital into Vietnam. And a question has been raised about where the huge capital is to be injected in, as there seems to be no more room for foreign investors.

Foreign investors now hold 49% of shares in big companies, including AGF, BMP, SAM and TAY, and 30% in STB. Under the current regulations, foreign ownership must not be higher than 49% in local joint stock companies, and 30% in local joint stock banks, which means foreign investors have no more opportunities to buy shares of the companies.

Meanwhile, the room for foreign ownership in other companies is also nearly running out: the foreign ownership in BT6 is 48.96%, CII 48.98%, SJS 44.98%, and VNM 46.26%. Especially, REE and SHC “have been well in advance of the age” as the two companies have sold 55.47% and 56.5% of shares respectively to foreign investors

Dang Huu Chau, former student of Tokyo University, who is now the securities broker for many Japanese tourists/securities investors in Vietnamese stock, also said that the share items of which the foreign ownership hits the ceiling level of 49% or 30% are the ones that can bring the fattest profit. Many Japanese investors want to make investments in these blue chips, but they cannot because there is no more room for them.

The Securities Brokerage Division under the Saigon Securities Incorporated (SSI) also said that many foreign investors could not buy the share items they want though they placed orders three weeks ago.

In fact, foreign investors still can buy some blue chips, but just in small volume as the room in these companies is nearly running out. However, as for foreign investment funds, the small volume is not worth their disbursement.

Don Lam, Director General of Vina Capital stressed that only when Vietnam offers more room for foreign investors, can the market become more bustling.

Raising the foreign ownership ratio in local companies proves to be the best solution to lure more foreign capital into Vietnam. However, the State Securities Commission (SSC) has recently stated that the Government of Vietnam does not think of this issue right at this moment. As such, several billion dollars worth of investment capital are still waiting to be injected in Vietnam.

Foreign investors believe that opportunities will come in several months, when a lot of big companies make IPOs. They also heard that SSC is compiling a new regulation on foreign investors’ management, which may allow foreign investment funds to open branches in Vietnam sooner than that stipulated in WTO commitments. However, analysts have warned that there would not be many chances for them, as the companies that make IPOs operate in the fields that limits foreign ownership, including banking, telecommunication and finance.
These companies include Vietcombank, BIDV (banking), MobiFone and Vinaphone (telecommunication).

In May 2007, foreign investors doubled the investment in Vietnam’s stocks: they injected $150mil in stocks in May, while the figure was $80mil in April, equal to the sum of money they poured into Vietnam in December 2006, and February 2007 (Source: Vietnam Monitor 2, June 8, 2007, HSBC Hong Kong).

Garry Evans, the stocks analyst of HSBC, who has been keeping close watch over Vietnam’s stock market, has advised investors to remain cautious with their deals, and not to become aggressive buyers at this moment, since the P/E Index proves to be too high: 34. The analyst said that investors should wait for the IPOs to appear in August, October and December.

However, a lot of foreign investors cannot keep patient as they were advised, as they have been put under hard pressure to disburse funds’ capital. Investment funds from the Republic of Korea, for example, have successfully raised $1bil worth of capital and they now compete with others in capital disbursement. Korean investors are the ones who won the right to buy most of Bao Viet’s shares at the recently held auction.

The analyst has named some share items that foreign investors can still buy in, FPT, VHS, PPC, PVD, SJS and ITA (the foreign ownership in these companies is below 20%). If the HCM City Securities Trading Centre (HSTC) does not offer more commodities, the foreign capital flow will not be able to increase.

Meanwhile, HSTC has reported that it has just received the applications for listing from few companies. At this moment, it seems to be not the right time to list, when the daily trading value is just VND500-600bil ($31.25mil).

Source: VNE

Foreign owned accounts at securities companies on the rise

More and more foreign investors have decided to make money on Vietnam’s stock market. Statistics show that the number of foreign owned accounts opened at securities companies is increasing.

According to the HCM City Securities Trading Centre (HSTC), nearly 5,000 foreign owned individual accounts have been opened at HSTC member securities companies. The owners of the accounts mostly are Japanese, Korean, Taiwanese and Singaporean. The largest number of foreign investors on Vietnam’s stock market proves to come from Japan.

Nguyen Hong Nam, Deputy Director General of the Saigon Securities Incorporated (SSI), said that some 2,000 foreigners’ accounts had been opened at SSI, 70% of which are Japanese owned.

BVSC, DVSC and Rong Viet all have reported an increased number of new foreign individual accounts, which account for 30% of the new accounts. Experts said that the new wave of foreign investment had been refreshing the stock market.

Vietnam’s stock market has become attractive in the eyes of foreign investors. Vietnam’s national economy is performing well, while the stock market is developing, which promises more profitable investment deals than developed markets.

In fact, the profit made by foreign securities investors in Vietnam has been increasing considerably. In his recent visit to Vietnam, John Stuttard, the Lord Mayor of the City of London, said that the gigantic development of the stock market had caught the special attention of British financial investors.

Nguyen Chi Trung, Director of the Brokerage Division under the Rong Viet Securities Company, said that if foreign investors kept trading as currently, the stock market would rally. Now, foreign investment funds are increasing their demand for securities, and they are especially targeting the IPOs of many big banks and corporations scheduled for the coming time.

VinaCapital said that it had estimated the sum of money to be disbursed, and has given a forecast about the auctioning price of Bao Viet shares. Mekong Capital has presented its third fund before the public, the $100mil Vietnam Azalea, which will focus on equitised companies in Vietnam. Mekong hopes to close the fund soon and begin the investment period, expected for the end of May.

Experts said that the demand of foreign investors was increasing. However, they will have to restructure their investment portfolios and look for new commodities, as there is no more room for foreign ownership in big companies like REE, SAM, STB and VNM.

Source: VNE

Bourbon Tay Ninh Sugar Company to sell 49% of shares

The Bourbon Tay Ninh Sugar Joint Stock Company (SBT) will auction 49% of its shares next month.

3% of the total 70 million SBT shares will be sold exclusively to local cane farmers and 2%, to SBT staff, said SBT General Director Philippe Lombard.

Under the company's equitisation plan, SBT will retain 51% of the stake or 72.8 million of the total 141.9 million shares worth 1.4 trillion VND (approximately 104 million USD).

The company has so far signed contracts to transfer 24% of its chartered capital to 17 partners, including Vinamilk, Kinh Do, Bibica and VinaCapital.

SBT was set up in 1995 as a joint venture between the Bourbon Group of France and two Vietnamese partners, with the French group representing a 70% stake of the 28.5 million USD in chartered capital and its 95 million USD investment capital.

In 1998, the company increased its chartered capital to 39.5 million USD and its investment capital to 111 million USD.

After Bourbon acquired the two partners’ stake in 2000, capital then grew to 112 million USD and 113 million USD, respectively.

In March 2007, SBT received a licence from Tay Ninh provincial authorities to become a joint-stock company.

The company specialises in making refined sugar, producing power from sugarcane waste to serve its production lines and providing sugarcane cuttings.

It hauled in over 193 billion VND (11.8 million USD) from the 2006-07 sugarcane crop.

Source: VNA

Who is the most valuable CEO?

The Refrigeration Electrical Engineering Corporation (REE) created a ‘revolution’ of salary for its CEO Nguyen Thi Mai Thanh. All shareholders attending the REE shareholders’ meeting held in late March 2007 voted to increase Ms Thanh’s wage from VND48 million (US$3,000) per month in 2006 to VND100 million ($6,200) per month this year.

REE shareholders call this a ‘revolution’ because Ms Thanh’s wage had not changed in the previous three years (under a labour contract signed on January 1, 2004, Ms Thanh’s salary is VND48 million per month) and now it has increased by more than two times.

An official of REE commented: “It is understandable to see Ms Mai Thanh’s wage rising like this because this number must be equivalent to the annual growth of REE.”

A human resources expert said that the wages of CEOs of firms listed in the Vietnamese stock market meets the current situation on the market for senior human resources of Vietnam. However, wages are only the easy-to-see part of income of CEOs because the thing that keeps them close to listed firms is that the volume of shares they and their family members own increases each time their companies issue bonus shares and new shares to increase capital.

High bonuses calculated based on the percentage of after-tax profit of the corporations are also a way to retain senior personnel.

Ms Thanh is one of the CEOs of listed companies who began as a state employee. Other CEOs of the same kind include Ms Mai Kieu Lien, Chairman and CEO of the Vietnam Dairy Product Company (Vinamilk), Mr Le Quang Doanh, Chairman and CEO of Binh Minh Plastic Company (BMP), and Ms Pham Thi Viet Nga, Chairman and CEO of the Hau Giang Pharmaceutical Company.

The common thing of those CEOs is that after equitisation they were trusted and appointed to be the representative of the State in the equitised firms. Their fast adaptation to their new working environments has also been highly praised by investors.

The CEO of a fund management company said: “I like Ms Mai Thanh’s to-the-fullest working style. Once my fund was about to issue more fund certificates, she called me at night to ask about the upcoming form of issuance so that REE could buy. I don’t know how she could work that hard, but such is the way of a businessperson who always considers the interest of his company.”

However, many shareholders are beginning to ask if it is in fact good for listed firms to have CEOs who were previously state employees and have stayed in their positions for so long. Because, according to human resources experts, one who sits in a position for a long time will become idle and lack new ideas.
Stock investors admire the group of CEOs who they call ‘two in one’ the most. These are real owners and businessmen, who are considered the richest on the Vietnamese bourse based on the volume and the value of shares they own.

Some big names are Tran Kim Thanh and Tran Le Nguyen of the Kinh Do Group, Truong Gia Binh of the Corporation for Financing and Promoting Technology (FPT), Dang Thanh Tam of the Tan Tao Industrial Zone JS Company (ITACO), Le Van Quang of Company, and Nguyen Duy Hung of the Saigon Securities Trading JS Company (SSI). Wages are no longer important to those CEOs because they are the biggest shareholders of the companies they lead.

Dang Thanh Tam, who has just left the CEO position of ITACO to assume a new post at the HCM City Hi-tech Park, is an example of this kind of CEO. But only several people know that the biggest ability of Mr Tam is designing projects. Projects of thousands of pages are always attractive to this CEO since this man wrote the first lines for the project to establish the Tan Tao Industrial Zone in HCM City.

Mr Tam is also very good at speaking English. He can directly negotiate with foreign partners without translators. He is also an ‘anonymous lawyer’ because he widely understands both Vietnamese and international laws on economics. During his foreign business trips, Ms Tam plays the role of a CEO, a translator, and a lawyer. Thus, he can make decisions very quickly and doesn’t need time to seek outside consultancy.

However, stock investors are still waiting for a new generation of young businessmen who will blow new and strong winds into listed firms. They are professional CEOs who are trained methodically and systematically and have tempered themselves in the international environment.

Phan Bich Van, CEO of Saigon Thuong Tin Bank (Sacombank), is an example. Ms Van worked for the International Finance Company (IFC) under the World Bank and won a Fulbright scholarship to study for a Master’s of Business Administration in the US before working for Sacombank.

As the representative for Sacombank at international workshops, Ms Van has won the hearts of participants with her charm, self-confidence, which have contributed to creating the image of young, talented and professional CEOs of Vietnam in the eyes of international investors.

According to investors, two CEOs considered the most ‘expensive’ in the Vietnamese stock market based on their annual income and success in business affairs are Don Lam, CEO of VinaCapital, and Dominic Scriven, CEO of Dragon Capital.

Don Lam graduated from Toronto University in Canada, majoring in trade and politics, in 1990. He was previously Deputy General Director of PricewaterhouseCoopers Vietnam, in charge of corporate finance consulting and management consulting and Manager in charge of corporate of the Deustche Bank Vietnam.

Dominic Scriven graduated with honours in law and social studies from Exeter University, the UK. He has 15 years of experience in the field of investment, including 13 years in Asia, particularly in Hong Kong and Vietnam. He worked for M&G Investment Management, Sun Hung Kai & Co and Citicorp Investment Bank.

Bargain hunters push VN-Index over 1000 points

Vietnam's main stock index rose 3.66% on Wednesday to close at 1,001.12 points, stemming a week-long slide as investors sought bargains.

The VN Index on the Ho Chi Minh City Securities Trading Center is still 14.5% below its lifetime high of 1,170.67 points on March 12. It started falling from 1,033.92 points on April 6.

"Many well-financed investors have returned to the market to look for reasonably priced stocks with positive earning performances in the first quarter and good forecasts for the rest of the year," a Habubank Securities analyst said in Hanoi.

Shares in 102 of the 107 companies listed on the exchange rose on Wednesday, figures from the market showed.


Shares in the second-largest listed firm, dairy product maker Vinamilk (VNM), rose nearly 4.7% to 179,000 dong ($11.1). The company said this week its quarterly net profit jumped nearly 66% to $20 million.

Shares in PV Drilling (PVD), the services arm of state oil monopoly Petrovietnam, rose nearly 4% to 236,000 dong ($14.6), but are still nearly 24% below a year high of 310,000 dong.
The company, which operates offshore oil rigs for Petrovietnam, said last week its revenues this year should rise 70.5% to $143 million on the back of strong demand for rigs.

Shares in FPT (FPT), the largest listed company, rose nearly 1% to 520,000 dong ($32.26), or 22% below their year high of 665,000 dong.

Analysts said the index, which rose 144.5% in 2006, would hover around the psychological level of 1,000 points in the second quarter as investors switched to growth stocks to be auctioned by the government this year, including shares in big state banks, insurance and telecom companies.

Source: Reuters

Vinamilk discloses quarterly figures

Leading Vietnamese dairy product maker Vinamilk (VNM) said on Monday quarterly net profit jumped nearly 66% to 323 billion dong ($20 million).

Vietnam's second-largest listed company also said revenues in the first quarter ended in March were 1.38 trillion dong ($86 million), up 7% from a year earlier It gave no reason for the increase in a company statement.

Earlier this month the $2 billion company foreacst its 2006 net profit would rise by 22.7 percent to 898 billion dong ($55.7 million) and revenues by 11.5% to 7.43 trillion dong ($461 million).

Vinamilk's Chief Executive Mai Kieu Lien said in March the firm would list 8.85 million shares with a total face value of $5.5 million on the Singapore stock market this year.

Vinamilk, the short name for the Vietnam Dairy Products Company, based in Ho Chi Minh City, has 75% of the market for diary products and beverages. The firm also deals in real estate and provides warehousing and transport services.

Shares in Vinamilk last traded down 0.6% on Friday to close at 178,000 dong ($11), having shed 16% from its year high of 212,000 dong.

Source: Reuters

Vinamilk's investment plan

Viet Nam Dairy Products JSC (Vinamilk-VNM) plans to invest over 1.74 trillion VND into existing and new projects this year. About 628.34 billion VND (39.27 million USD) will go toward existing projects, which include buying more cows.

The remaining 1,121 trillion VND (70 million USD) is earmarked for new projects, like constructing new facilities in the Phu My Hung urban zone.

Vinamilk has also decided to issue over 8.85 million shares, representing a 5% stake in the company, on the Singapore stock exchange.

Source: VNA

Vinamilk tries to enter beer market with SABMiller

Vinamilk is to team up with global brewer SABMiller as its looks to enter the country's dynamic beer market.

The news continues the trend of multinational brewers looking for local partners to better adapt to the demands of Vietnamese consumers, and a general growth in appetite for beer in the country.

Vinamilk, which already holds a strong distribution presence and knowledge of the local market through its dairy operations, will combine with SAB to help push the brewers leading brands like Peroni, Pilsner UrQuell and Miller into the country.

A new €33 million plant, which opened its door last week, is expected to allow the two groups to produce 100m liters of beer per year.

However, the venture faces strong competition from a number of other multinational brewers keen on cornering the Vietnamese market.

Just last month, rival Calrsberg acquired a 10 percent stake in Vietnam's second largest brewer, Habeco, which is a state-owned company.

Despite having been operating in the country since 1993, Carlsberg has recently stepped up its production capabilities as the market reaches fruition.

The expected average annual growth for beer production in Vietnam is around eight per cent, according to the company's estimates.

As a result, Carlsberg expects to see beer sales in the country to rise to from around 15 million to 28.1 million hectoliters by 2015, making the market the third largest in Asia.
This confidence was recently also matched by Asia Pacific Breweries (APB), which sees Vietnam as a vital player in the lucrative regional demand for beer.

APB heralded its increasing presence in the Indochina market as a key factor in their successful first quarter results, with recent purchases such as the acquisition of the Fosters brand in Vietnam helping it to a 26 per cent increase in volume.

Source: Thanh Nien

Vinamilk starts brewery joint venture

A brewery with an annual production capacity of 100 million litres was inaugurated at the My Phuoc Industrial Zone No.2 in southern Binh Duong province on Mar. 26.

The joint venture between the Viet Nam Dairy Products Joint Stock Company (Vinamilk) and London-based SABMiller, the world's second largest brewer, will have an initial production capacity of 50 million litres per year.

The SABMiller Viet Nam, whose construction commenced in March 2006, was installed with a state-of-the-art production line from Germany under the supervision of more than one hundred European experts.

Under the deal between the two companies, Vinamilk and SABMiller each hold 50% interest in the 45mio US$ project.

Products of the joint venture, bearing the Zorok trademark, will take advantage of the extensive distribution network of Vinamilk, the market leader in milk and related products of Viet Nam with 75% market share, and the SABMiller's distribution network in more than 60 countries.

Vinamilk to issue more shares in Singapore

The Viet Nam Dairy Products Joint Stock Company (Vinamilk) plans to issue almost 9 million shares on the Singapore Exchange this year, according to Vinamilk's Board of Directors.

The plan will be high on the agenda of the company's shareholders meeting slated for the end of this month.
Vinamilk is scheduled to float more than 8.85 million shares, worth about 5% of the company's chartered capital, on the Singapore Exchange within this year under permission granted by the State Securities Commission of Viet Nam on Nov. 15, 2006.

Founded in 1976, Vinamilk has become a leading business in the country's milk processing industry. It now occupies 75% of the country's milk market share and its products are exported to the US, France, Canada, Poland, Germany, Southeast Asia and many countries worldwide

Source: VNA

Vinamilks plans to list at Singapore

Vinamilk (VNM) plans to offer 5% of its shares on the Singapore stock exchange by the end of this year.
A company statement says that it will offer 8.85 million new shares in the Singapore listing, but did not say how much money it expected to raise.
Mai Kieu Lien, the company's chief executive said the overseas listing must still be approved at a shareholders meeting on March 31.

The decision comes amid an aggressive courtship of Vietnamese authorities by many foreign stock markets, such as Singapore, Hong Kong, Seoul and even Prague, all seeking to secure listings from companies operating in one of Asia's fastest-growing economies.
But in mid-December, Singapore appeared to get a leg up on its rivals, announcing it had reached an exclusive deal with the Vietnamese government to help it modernize its capital markets.

Kevin Snowball, director of PXP Vietnam Asset Management said the move by Vinamilk, which is still 50.1% state owned, is just "testing the waters" to see the reception for Vietnamese companies in foreign markets, though he suggested it was a "pretty expensive" move for the company.

"The Vietnamese authorities have had people knocking on their doors extolling the virtues of listing Viet companies on a more developed stock exchange," he said.
"It is our opinion that Vietnam is developing into a proper exchange itself and doesn't really need this," he said. "But it's obviously just a test to see what happens."

Yet it remains to be seen whether Singaporean investors will be as enthusiastic about the company as investors at home.

Vinamilk - which produces dairy products, juices and other beverages and has a 75% market share - is currently trading on the domestic stock exchange at a price that's 43 times 2006 earnings, and 32 times projected 2007 earnings.
Vietnam's stock market, which rose 144% in 2006, is up another 50% so far this year. The market frenzy has alarmed Vietnamese authorities, who have been considering measures to cool the market.

Source: Thanh Nien

Vinamilk increased profit in 2006

Vietnam's top dairy product maker, Vinamilk, posted a 21%-increase in 2006 net profit to 733.23 billion VND (45.6mio US$), a company statement released at the stock exchange said.

Revenues of Vinamilk, Vietnam's second-largest listed company, increased 17.7% from 2005 to 6.66 trillion dong (414mio US$), the statement said.

Source: Reuters

Vice President advises Vinamilk

Vice President Truong My Hoa called on Vietnam’s leading dairy producer Vinamilk to develop into a powerful economic player to face competition during the country’s integration into the global economy.

Hoa, during her working visit to the Ho Chi Minh City-based company, urged Vinamilk to further improve quality and boost diversification of its products, as well as scout out new market. It should also focus its investment on centralized material zones like financing farmers to develop dairy cow herds and taking the initiative in raw material sources, in order to achieve sustainable development, she added.

The listed dairy maker was oriented to target 50% of material for dairy production sourcing domestically in the next five years. Vinamilk was a favourite among foreign investors because of its solid performance. The company, which holds 75% of the dairy market, is valued at 930 mio US$. It has invested in other businesses, including the packaging company V-Pack and infrastructure and property projects.It has also invested nearly 747,000 US$ to construct V.Mart convenience stores throughout the country, aiming to cement distribution of its award winning products.
Vinamil-branded products have exported to the US, Canada and France, among other markets.
The firm plans to list its shares on the Singapore stock exchange this year.

Source: Thanh Nien

Vinamilk (VNM) starts Forward Integration

Vinamilk (VNM)is investing nearly US$747,000 to construct V.Mart convenience stores throughout the country.
Last weekend it opened the first two supermarkets in Ho Chi Minh City.
Vinamilk was founded thirty years ago and currently holds 75% of the Vietnamese diary market.

Source: Thanh Nien

Vinamilk will issue more shares

The Vietnam Dairy Products Company, or Vinamilk (VNM), would issue 18,050,475 shares and use the proceeds "to raise investment, expand production and business and restructure the firm's finance", the State Securities Commission said.

At Vinamilk's current market prices of $5.6 per share, its issue could bring in around $100 million.

Vinamilk shares fell 0.55 percent to close at 90,500 dong (5.6 USD) on Thursday, giving the firm a market value of nearly $897 million. That's one fourth of the Ho Chi Minh City's stock market capitalisation of $3.6 billion.

Vinamilk, Vietnam's largest listed firm, says its dairy products and beverages have a market share of 75 percent. It also deals in real estate and provides warehousing and transport services.