The heads of four leading Vietnamese companies met with shareholders yesterday to allay fears amid tumbling share prices.
Investors fired more than 30 questions at bosses of the Refrigeration Electrical Engineering Corporation (REE), the Cables and Telecom Materials Company (SAM), the Gemadept Corporation (GMD) and the Kinh Do Corporation (KDC).
Top of investor concerns was falling prices - despite seemingly sound business performances and potential investment plans.
Sacom General Director Do Van Trac said three factors were chiefly to blame for declining stock values - the State’s macro-economic policies (such as the State Bank of Viet Nam’s decree 03), business results and investor confidence.
He said the most noticeable feature of the Vietnamese stock market was the imitative behaviour of investors.
"Vietnamese investors often follow each others’ decisions, which has a negative influence on share prices," said Trac.
"Investors cannot blame their losses on market factors, they must look to themselves. They should be patient and believe in their companies’ future, rather than just off-loading shares when they find prices go down, which makes the situation worse."
Trac added that he hoped the shareholder meeting would convince investors either to sell their shares or hold onto them.
GMD General Director Do Van Minh said prices had been inflated beyond their real value and that it was only normal to expect them to find their own level.
He said that GMD’s true share price lay between VND160,000 and VND180,000. Next year, if GMD profit’s grow by 30 per cent, as anticipated, investors could expect stock values to rise accordingly.
Investors also raised the issue of foreign ownership, which currently stands at 49 per cent of REE and GMD.
Investors asked if the companies intended to issue more shares to attract greater foreign investment to hike prices.
Minh said: "If the company issues more shares, we will try not to sell directly to foreign strategic shareholders in order to force them to buy on the stock exchange. This can make prices higher."
Trac said foreign investors now owned 40.3 per cent of SAM’s shares. He said if they wished to buy a larger stake in the company they would have to do it through the stock exchange. However, he doubted strategic shareholders would sell.
The chairwoman of REE Management Board, Nguyen Thi Mai Thanh, said her company would only issue more shares as part of its business plan.
On this issue investors expressed concerns about investment in real estate.
Thanh affirmed that REE’s main investments were in property and finance. She said profits from real estate investments this year would be VND100 billion (US$6.2 million), accounting for one-third of the company’s total targeted profit.
Source: VNS
Showing posts with label REE. Show all posts
Showing posts with label REE. Show all posts
Friday, August 31, 2007
Thursday, August 30, 2007
REE makes foray into banking, brokerage
Vietnamese engineering firm Refrigeration Electrical Engineering Co. (REE) plans to invest in two start-up banks in Vietnam as it diversifies into financial services, its chief executive said on Thursday.
Communist Vietnam's banking sector is experiencing growth of more than 20 percent in loans and deposits, fuelled by a fast-growing economy where 85 million people hold just 5 million bank accounts.
"These are new banks which are applying for licences," REE CEO Nguyen Thi Mai Thanh told Reuters on the sidelines of a conference in Hanoi without identifying the lenders.
She said one bank would have a registered capital of 1 trillion dong ($62 million) and another, registered capital of 1.2 trillion dong. The licences have not yet been issued.
Thanh said Ho Chi Minh City-based REE has invested 834 billion dong ($52 million) in shares of Vietnamese banks such as Sacombank (STB), bonds, as well as shares of listed and unlisted firms so far.
Online newspaper VnExpress on Thursday quoted Thanh as saying REE would invest $10 million in the two banks and would also establish its own securities subsidiary.
Shares in REE closed flat at 131,000 dong ($8.1) on Thursday, valuing the firm at $664 million.
Thanh said in the long run, REE expects its core engineering business to generate one third of its profits, property to bring one third and financial investments another third.
REE's net profit is expected to rise 51 percent to 245 billion dong ($15 million) this year as revenues would more than double to 1 trillion dong ($62 million), she said at the conference.
REE, one of Vietnam's first two listed firms when the Ho Chi Minh Stock Exchange opened in July 2000, has targeted an overall growth of at least 20 percent a year until 2010 when its net profit would grow to 800 billion dong, Thanh added.
REE's current core business is in industrial air-conditioning systems and electrical engineering. It also produces household appliances such as washing machines, refrigerators and air-conditioners.
REE also operates a software park in Ho Chi Minh City.
Thanh said REE has been building to add 40,000 square metres of office space, residential areas and industrial zones to bring its total space for lease at the year end to 110,000 square metres and that should generate $15 million in revenues by 2009.
"Until 2010 we would expand our space for lease to 200,000 square metres," she said.
REE's pre-tax profit jumped 55.6 percent in the first seven months of 2007 from a year earlier to nearly $15 million on strong construction demand, the company said
Source: Reuters
Communist Vietnam's banking sector is experiencing growth of more than 20 percent in loans and deposits, fuelled by a fast-growing economy where 85 million people hold just 5 million bank accounts.
"These are new banks which are applying for licences," REE CEO Nguyen Thi Mai Thanh told Reuters on the sidelines of a conference in Hanoi without identifying the lenders.
She said one bank would have a registered capital of 1 trillion dong ($62 million) and another, registered capital of 1.2 trillion dong. The licences have not yet been issued.
Thanh said Ho Chi Minh City-based REE has invested 834 billion dong ($52 million) in shares of Vietnamese banks such as Sacombank (STB), bonds, as well as shares of listed and unlisted firms so far.
Online newspaper VnExpress on Thursday quoted Thanh as saying REE would invest $10 million in the two banks and would also establish its own securities subsidiary.
Shares in REE closed flat at 131,000 dong ($8.1) on Thursday, valuing the firm at $664 million.
Thanh said in the long run, REE expects its core engineering business to generate one third of its profits, property to bring one third and financial investments another third.
REE's net profit is expected to rise 51 percent to 245 billion dong ($15 million) this year as revenues would more than double to 1 trillion dong ($62 million), she said at the conference.
REE, one of Vietnam's first two listed firms when the Ho Chi Minh Stock Exchange opened in July 2000, has targeted an overall growth of at least 20 percent a year until 2010 when its net profit would grow to 800 billion dong, Thanh added.
REE's current core business is in industrial air-conditioning systems and electrical engineering. It also produces household appliances such as washing machines, refrigerators and air-conditioners.
REE also operates a software park in Ho Chi Minh City.
Thanh said REE has been building to add 40,000 square metres of office space, residential areas and industrial zones to bring its total space for lease at the year end to 110,000 square metres and that should generate $15 million in revenues by 2009.
"Until 2010 we would expand our space for lease to 200,000 square metres," she said.
REE's pre-tax profit jumped 55.6 percent in the first seven months of 2007 from a year earlier to nearly $15 million on strong construction demand, the company said
Source: Reuters
Wednesday, August 15, 2007
REE's 7-month profit soars 55.6 pct y/y
Vietnam's Refrigeration Electrical Engineering Co. (REE) said on Wednesday its pre-tax profit jumped 55.6 percent in the first seven months of 2007 from a year earlier to nearly $15 million on strong construction demand.
The Ho Chi Minh City-based firm, also known as REE, said in a statement issued through the Ho Chi Minh Stock Exchange the seven-month profit accounted for 71.22 percent of its annual target of 340 billion (nearly $20 million).
It did not provide a net profit figure.
Vietnam's construction sector expanded 9.51 percent in the first half of 2007 from a year earlier, government figures show.
REE works in industrial air-conditioning systems and electrical engineering. It also produces household appliances such as washing machines, refrigerators and air-conditioners.
REE, one of Vietnam's first two listed firms when the stock market opened in July 2000, also operates a software park in Ho Chi Minh City, Vietnam's commercial centre.
Its shares fell 1.5 percent to 131,000 dong ($8.1) on Wednesday.
Source: Reuters
The Ho Chi Minh City-based firm, also known as REE, said in a statement issued through the Ho Chi Minh Stock Exchange the seven-month profit accounted for 71.22 percent of its annual target of 340 billion (nearly $20 million).
It did not provide a net profit figure.
Vietnam's construction sector expanded 9.51 percent in the first half of 2007 from a year earlier, government figures show.
REE works in industrial air-conditioning systems and electrical engineering. It also produces household appliances such as washing machines, refrigerators and air-conditioners.
REE, one of Vietnam's first two listed firms when the stock market opened in July 2000, also operates a software park in Ho Chi Minh City, Vietnam's commercial centre.
Its shares fell 1.5 percent to 131,000 dong ($8.1) on Wednesday.
Source: Reuters
Wednesday, July 04, 2007
How are listed companies’ financial investments performing?
Of the 107 companies listing at the HCM City Securities Trading Centre, only five do not make financial investments, namely CYC, MCP, SAF, VGP and VPK. The other 102 companies have financial investment deals totalling several trillion VND.
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Buying shares or bonds proves to be a suitable way to make temporarily idle capital produce profit, and companies always make short-term investments this way.
As for REE Corp, the Refrigeration Electrical Engineering Corporation, for example, financial investment has become a key business. As of March 31, 2007, the corporation had financial investment deals worth VND1,312bil ($82mil) comprising the investment of VND503bil ($31.43mil) in securities and VND814bil ($50.87mil) in deposits.
In 2006, the financial investments of REE brought about the profit of VND150bil ($9.37mil), and the figure was VND125bil ($7.81mil) in the first quarter of 2007.
Normally, there are three ways for a company to begin its financial investment: 1. build a division in charge of financial investment 2. cooperate with another company 3. set up a subsidiary.
The first and the second ways prove to be suitable for small companies, which do not have much capital and do not have financial experts. The third way is only for big corporations and groups.
Currently, many companies are trying to raise funds from existing shareholders and the public in order to raise their chartered capital. A part of the raised capital would be injected in production, while the remaining would be reserved for financial investments. Some companies even borrow money from banks to inject in financial investment deals though they lack capital for production activities.
Companies’ investments in each other often create links which can have impacts on share prices. For example, REE Corp now holds shares of Sacombank, and vice versa, the bank holds shares of REE (REE has 11mil Sacombank shares). Therefore, if Sacombank’s share price increased from VND60,000/share to VND100,000 and VND160,000/share, it would lead to the increase of REE shares.
In some cases, enterprises are too busy with their financial investments, ignoring their main business and production, leading to bad business performances and danger. And concerns have been raised that the danger of a company may have bad impacts on other companies that invest in this company, and become a danger for the whole system.
Analysts have said that making financial investments has become a tendency that many companies are following. In the near future, with the national economy performing well with the growth rate of more than 8% per annum, and when commodities are profuse (a lot of IPOs are to be conducted in some days), it is expected that more and more companies will be lured by financial investment deals.
Source: VNE
Friday, June 22, 2007
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 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
Wednesday, June 06, 2007
Four new partners add to MLC family
Mai Linh Joint Stock Co (MLC) brought its total number of strategic investors to six after four new investors – IndochinaCapital, Arisaig Asean Fund, Phiem Aizawa Trust and Vina Securities – joined existing investors REE and Investco.
The six strategic investors will hold 24.65% of the preferential and common shares of MLC’s equity, of which, IndochinaCapital holds 14.45% while the Refrigeration Electrical Engineering Co (REE) holds 6.27%.
Earlier, VinaCapital financed VND50 billion (US$3.1 million) worth of converted bonds for MLC, according to a statement made at the latest shareholder’s meeting on Wednesday.
At the meeting, the company announced it had posted a revenue of VND280 billion ($17.5 million) in 2006, for a year-on-year increase of 13% and an after-tax profit of VND13.5 billion (over $840,000).
The firm also increased its charter capital in 2006 from VND68 billion ($4.3 million) to VND380 billion ($24 million). This year, the company plans to raise its capital to VND980 billion ($61.3 million).
During the meeting, it was also decided that the company would convert preferential shares to public shares at a 1:1 ratio from July 1 to 17.
Source: VNN
The six strategic investors will hold 24.65% of the preferential and common shares of MLC’s equity, of which, IndochinaCapital holds 14.45% while the Refrigeration Electrical Engineering Co (REE) holds 6.27%.
Earlier, VinaCapital financed VND50 billion (US$3.1 million) worth of converted bonds for MLC, according to a statement made at the latest shareholder’s meeting on Wednesday.
At the meeting, the company announced it had posted a revenue of VND280 billion ($17.5 million) in 2006, for a year-on-year increase of 13% and an after-tax profit of VND13.5 billion (over $840,000).
The firm also increased its charter capital in 2006 from VND68 billion ($4.3 million) to VND380 billion ($24 million). This year, the company plans to raise its capital to VND980 billion ($61.3 million).
During the meeting, it was also decided that the company would convert preferential shares to public shares at a 1:1 ratio from July 1 to 17.
Source: VNN
Saturday, May 26, 2007
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
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
Saturday, May 19, 2007
Blue chip firms speculate in real estate
Vietnamese companies are increasingly moving from their traditional business platforms into real estate speculation and development in a bid to boost corporate values on the stock market.
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
High-profile firms like REE are widening their portfolios to include real estate speculation and property development
The shift has become order of the day for many firms eager to tap into a red hot real estate market that is generating huge profits for investors as demand currently heavily outweighs supply.
Refrigeration and Engineering Corporation (REE) is one company known for its mechanical and engineering business. The firm is now a high-profile real estate developer with five successful office projects in Ho Chi Minh City on the books and more on the way.
Last year, REE pocketed over $3 million from the lease of company-owned office space and expects to double that figure this year after opening a further 27,000 square metres in area two months ago.
REE has plans to increase its forays into the market with a $25 million investment that will see the company increase its leased floor space by an additional 65,000sqm.
Confectionery maker Kinh Do Corporation recently announced that it would invest 30% of its operating profits into property development with an office and residential complex for Ho Chi Minh City.
Battery producer Pinaco and the Saigon Garment Company (SGC) are other cases in point. Pinaco is preparing a share issuance to raise capital to build a new factory in Dong Nai province and is looking for partners to develop its current 20,000sqm site in Ho Chi Minh City's District 6. SGC also plans to build a small industrial complex and move its facilities out of town. The company will rebuild residential and office blocks on its current site.
Other firms, which are preparing for initial public offerings (IPO), are also building large offices to boost corporate values. Vietcombank is due for an IPO in October and has stated it will put up a 77,000sqm office block in the country's second city, while Bank for Investment and Development of Vietnam, Electricity of Vietnam, Bao Viet and Bao Minh are all building their own office buildings.
Real estate investments are not only boosting corporate profiles but are also bringing in tidy profits for companies not afraid to step away from their traditional business models. Grade A office monthly rental rates in Hanoi and Ho Chi Minh City now reach $38 per square metre and are expected to fetch up to $46 by next year. Housing and retail space demand is also strong with rents set to increase across the board.
Source: VNE
Thursday, May 10, 2007
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.
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.
Thursday, April 12, 2007
REE's earnings in 2006 tripled
Over the next three years, the Refrigeration Electrical Engineering Corporation (REE) plans to increase its charter capital to VND2 trillion (US$125 million), up five times over the current level, through continued revenue growth and branching out into new areas.
Last year, the company earned VND824.14 billion (about $51.5 million) in revenue, more than triple that of 2005, with pre-tax profits at nearly VND299 billion ($18.69 million).
Earnings grew, says REE chairwoman Nguyen Thi Mai Thanh, due to strong gains in all business areas - mechanical and electrical engineering (M&E), air-condition and home appliance sales, real estate and financial investments.
Financial investments alone contributed VND149.2 billion ($9.33 million) to profits, representing 50 per cent of earnings from the four above mentioned areas.
Much of the revenue growth was through newly established subsidiaries. The company spent VND70 billion ($4.38 million) to set up REE Land JSC, and VND11 billion ($687,500) to create REE Electricity JSC. The parent owns 70 and 30 per cent in the subsidiaries respectively.
Thanh says the company will continue to expand its business activities, helping achieve its VND2 trillion chartered capital target by 2010. REE plans to invest in public infrastructure - such as electricity utilities, waterworks and mining - and invest further in existing ventures.
REE has already committed nearly $1 billion to building new hydro and thermoelectric power plants, and has helped establish the REE-Chuong Duong Land Corp with VND160 billion in charter capital.
The company will issue more shares on the stock market over the next three years.
"In this period, we will gradually equitise our affiliates to mobilise new resources and broaden the scale of these companies," said Thanh. REE predicts 2007 revenue to hit VND1 trillion ($62.5 million) with VND340 billion ($21.25 million) in pre-tax profits.
By 2010, the company forecasts earnings to reach VND2.6 trillion ($162.5 million) and profits of VND900 billion ($56.25 million).
Source: VNS
Last year, the company earned VND824.14 billion (about $51.5 million) in revenue, more than triple that of 2005, with pre-tax profits at nearly VND299 billion ($18.69 million).
Earnings grew, says REE chairwoman Nguyen Thi Mai Thanh, due to strong gains in all business areas - mechanical and electrical engineering (M&E), air-condition and home appliance sales, real estate and financial investments.
Financial investments alone contributed VND149.2 billion ($9.33 million) to profits, representing 50 per cent of earnings from the four above mentioned areas.
Much of the revenue growth was through newly established subsidiaries. The company spent VND70 billion ($4.38 million) to set up REE Land JSC, and VND11 billion ($687,500) to create REE Electricity JSC. The parent owns 70 and 30 per cent in the subsidiaries respectively.
Thanh says the company will continue to expand its business activities, helping achieve its VND2 trillion chartered capital target by 2010. REE plans to invest in public infrastructure - such as electricity utilities, waterworks and mining - and invest further in existing ventures.
REE has already committed nearly $1 billion to building new hydro and thermoelectric power plants, and has helped establish the REE-Chuong Duong Land Corp with VND160 billion in charter capital.
The company will issue more shares on the stock market over the next three years.
"In this period, we will gradually equitise our affiliates to mobilise new resources and broaden the scale of these companies," said Thanh. REE predicts 2007 revenue to hit VND1 trillion ($62.5 million) with VND340 billion ($21.25 million) in pre-tax profits.
By 2010, the company forecasts earnings to reach VND2.6 trillion ($162.5 million) and profits of VND900 billion ($56.25 million).
Source: VNS
Sunday, November 05, 2006
REE: USD 19.8mio issue for real estate and power plant investments
Refrigeration and Electrical Engineering Corporation (REE), one of Vietnam’s largest listed firms, said it will issue new shares to raise at least $19.8 million to invest in real estate and a power plant.
REE said it would invest in a 300MW thermal power plant it plans to run with several partners. Around $250 million is needed to build the project. The new projects would diversify the company’s scope of operations, which includes electrical engineering, manufacturing of washing machines, refrigerators, air-conditioners and also refrigeration and real estate services.
REE has also moved into commercial property, with the 30,000sqm e-Town almost fully occupied and a second e-Town 50 per cent pre-rented and due for completion by the end of this year.
REE has a large investment portfolio, with the biggest holding being a 5 per cent in Ho Chi Minh City-based Sacombank, the country’s largest joint stock commercial bank.
With the market cap of $170m, REE ranks sixth among Vietnam’s top listed firms, behind Sacombank, Vinamilk, Vinh Son-Song Hinh Power Plant Company, Gemadept and Sacom.
The foreign ownership limit of 49 per cent at REE is full.
REE said it would invest in a 300MW thermal power plant it plans to run with several partners. Around $250 million is needed to build the project. The new projects would diversify the company’s scope of operations, which includes electrical engineering, manufacturing of washing machines, refrigerators, air-conditioners and also refrigeration and real estate services.
REE has also moved into commercial property, with the 30,000sqm e-Town almost fully occupied and a second e-Town 50 per cent pre-rented and due for completion by the end of this year.
REE has a large investment portfolio, with the biggest holding being a 5 per cent in Ho Chi Minh City-based Sacombank, the country’s largest joint stock commercial bank.
With the market cap of $170m, REE ranks sixth among Vietnam’s top listed firms, behind Sacombank, Vinamilk, Vinh Son-Song Hinh Power Plant Company, Gemadept and Sacom.
The foreign ownership limit of 49 per cent at REE is full.
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