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Title Company visit note_VIC
Report Type Phân tích công ty
Source BSC
Industry Financials
Bussiness VIC
Detail Date : 14/04/2014
Total pages : 5
Language : English
File Type : .PDF
FileSize : 431 Kb
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Short Content  Business performance: In 2013, although the real estate market showed no sign of prosperity, VIC‘s net revenue and profit after tax excluding the benefit of minority shareholders surged by 132.5%, (reached VND 18,378 billion) and 331.46% (reached VND6,780 billion), respectively. VIC is the real estate company having the highest revenues and highest profit after tax listed on Vietnam stock market.  Profitability: VIC’s net profit margin, ROE and ROA increased from 19.88%; 18.42% and 3.44% in 2012 to 36.89%, 54.17% and 10.30%, respectively. Because it’s net revenue and finance revenue rose while its finance cost margin and business management cost margin reduced sharply.  Real Estates: VIC focuses on developing luxury real estate segment. At the end of 2013, VIC owned 23 real estate projects with total land bank of 10.03 million m2 under Vincom brand. Its consumption rate and occupancy rate of commercial centers are high (Table 1&2). Its revenue from transferfing real estates in 2013 accounted for 79.75%, reached VND 14,658 billion, increased by 174.80% compared to 2013. Its revenue from leasing investment real estates gained VND 1,799 billion, up 46.73% over 2012. In 2014, we expect that its revenues will be high due to its recognization and opening sales of new apartments in Vinhomes Royal City, Times City and Vinhome Riversides.  Services of hotel tourism and amusement: under Vinpearl brand, its 15 projects and luxury resorts with land bank of 60.71 million m2 made VND 1,600 billion, up 35.71% over 2012 and contributed 8.70% to its revenues. In 2014, these services are expected to continue to provide a stable revenues and high growth thanks to the advantage of its brand and the recovery of the economy led to the recovery of the resort real estate segment. In December, 2014, Vinpearl Phu Quoc is planed to be completed and put into operation by VIC.  In 2014, VIC established VinE-com, expanding to E-commerce. The total initial investment capital amounted to VND 1,050 billion, of which there is approximately 70% of its equity. VinE-com is oriented to become VIC’s key business segment and the largest E-comerce brand in Vietnam in the next 5 years. In 2014, the group intends to develop Vinmall and Vindeal brand which not only sell its products and services but also sell its partners’. However, VinE-com may not contribute much profit to Vingroup in 2014.  Debt and equity: Its equity reached VND 14,472 billion, the highest among real estate companies listed in Vietnam. In 2013, the company converted successfully USD 2,000,000 of international convertible bonds into 696,664 stocks. VIC also successfully raised USD150 million of international syndicated loan; VND 4,300 billion of domestic long-term corporate bonds and USD200 million of international bonds. In addition, the company also has large amounts appropriated funds, worth VND 29,772 billion (accounted for 52.09% of its total liabilities).  Investment view: VIC is the leading corporation in the business of real estates and hospitality services, travel and amusment. VIC owns large land bank and many luxury projects in the golden land, which have the high rate of consumption of real estates for sale and high occupancy rate in the commercial centers. We recommend holding VIC at the expected price of VND 73,000. We use P/E method to evaluate the stock price of VIC: We select real estate company in Asian Pacific emerging market which have revenues from VND 14,000 billion to VND 22,00 billion to determine the price of VIC because VIC is a leading real estate company in term of revenue, net income, and profitability in Vietnam. The P/E is 10 (the current P/E of VN-index is 14.41 times and current P/E of the real estate company listed on the Vietnam stock market is 38.95 times). Diluted EPS is VND 7,299. Reasonable price of VIC is VND 73,000.