Asia_Cruise_Junk_in_Halong_bay

 

Our objective of starting Value Invest Asia has always been to educate and promote the concept of value investing in Asia. Thus, it always warms our hearts to receive feedbacks and responses from our readers.

 

This week, we gotten a special report on the Vietnam Stock Exchange by one of our readers, which prompt me to take a look at the Ho Chi Minh Exchange. There are about 300 companies listed on the Ho Chi Minh Exchange. In this article, let us take a look at the top 3 firms listed on the exchange by market capitalization.

 

PetroVietnam Gas Joint Stock Corporation

PetroVietnam Gas Joint Stock Corporation is the largest company listed on the Ho Chi Minh Exchange by market capitalisation. It has a market capitalisation of about VND 145 billion.

It is engaged in gathering, transporting, storing, processing, and trading gas and gas products in Vietnam. It is also a subsidiary of Vietnam Oil and Gas Group, the state-owned oil and gas major of Vietnam.

Revenue of the PetroVietnam Gas Joint Stock Corp has more than doubled since FY2009 from VND 30.5 billion to VND 73.4 billion in FY2014. Its earnings has been growing more impressively from just VND 3.3 Billion to VND 14.1 billion over the same period. Today, the company still trades with a dividend yield of 5.4% and at a price to earnings ratio of 12.7x.

 

Vietnam Dairy Products Joint Stock Company

Vietnam Dairy is the second largest company listed on the exchange. With a market capitalisation of VND 108 billion, the company is the largest Food and Beverage company in Vietnam. The company manufactures and distribute products such as liquid milk, yogurt, powdered milk, ice cream, and other type of beverages.

The company not only sells its products in Vietnam but also export its products to countries like Australia, Cambodia, Iraq, the Philippines and the United States. Its revenue has more than tripled since FY2009 from VND 10.6 billion to VND 35.0 billion in FY2014. Its earnings has also increased from VND 2.4 billion to VND 6.1 Billion.

Given the attractiveness of the business, it is no doubt that the company is currently trading at a price to earnings of 17.8x with a dividend yield of 3.7%.

 

Joint Stock Commercial Bank For Foreign Trade Of Vietnam

Better known as Vietcombank, the Joint Stock Commercial Bank for Foreign Trade of Vietnam is the third largest company listed on the exchange. At VND 97.8 billion, the company is giving investors a dividend yield of 2.8% and trading at a price to earnings ratio of 23.1 times.

The company has a revenue of VND 15.3 billion in FY2009 and has grown it to VND 28.3 billion in FY2013. However, earnings has hardly improved since then, only growing from VND 3.5billion to 3.67 billion over the same period.

 

Value In Action

Although the Ho Chi Minh Exchange is a much smaller exchange compared to its regional peers in Thailand, Malaysia and Singapore, the exchange does seems to be home to a few interesting companies.

 

Thank you to our readers for bringing it up to our attention.

 

Submit your email address for important market updates and FREE case studies!

[contact-form-7 404 "Not Found"]

We will only provide you with information relevant to value investing. You can unsubscribe at any time. Your contact details will be safeguarded

The information provided is for general information purposes only and is not intended to be any investment or financial advice. All views and opinions articulated in the article were expressed in Stanley Lim’s personal capacity and do not in any way represent those of his employer and other related entities. Stanley Lim does not own any companies mentioned.

LEAVE A REPLY

Please enter your comment!
Please enter your name here