HSBC Global Research voted Vinamilk as one of the five most interesting stocks in Southeast Asia.
In the report on June 29, HSBC Global Research (HSBC Global Research) selected Vinamilk’s VNM stock in the list of 5 most interesting stocks in Southeast Asia in the current period. This assessment is based on the expectation that VNM will benefit when commodity prices are entering a stable phase. VNM is also the only stock in Vietnam’s F&B industry recommended by HSBC in this report. The remaining 4 companies come from the financial – banking, technology – retail segments of Indonesia, Singapore and Thailand.
In the past time, input material prices of manufacturing enterprises in general and Vinamilk have been affected by the Covid-19 epidemic and world economic and political issues. Therefore, the fact that the price of raw materials enters the adjustment period will be a positive signal contributing to improving the profit margin of enterprises from the third quarter of 2022.
In the first months of 2022, VNM stock is not an option for many investors, partly because the cash flow is engrossed in short-term “games”. However, VNM is now one of the strongest blue-chips, bringing in a profit of 14% in the last 13 sessions.
At the beginning of the July trading session (July 1), VN-Index still cannot return to the level of 1,200. Stocks with green color like VNM became the “saviour” of the market.
Since the last time the VN-Index reached 1,500 points on April 7, Vinamilk’s stock price has only decreased by 6% while the VN-Index has dropped by 20% (as of July 1) and many top stocks have also lost as much as 6%. 20-30% of the value. Trading volume of VNM shares also increased, becoming a “haven” for many investors while the market was under a lot of pressure.
Trading volatility of VNM shares.Photo: CafeF
Statistics show that since mid-June, VNM has always appeared in the list of key stocks of the market. Some experts believe that cash flow is being attracted by the fact that Vinamilk is about to pay a cash dividend at a relatively high rate of 38.5% on August 19.
Notably, Vinamilk has always been known as a “cash giant” on the stock market. The net cash balance on the consolidated financial statements as of March 31 was VND10,500 billion, accounting for 19.8% of total assets. This partly explains the fact that cash flow tends to shift to stocks that are stable, sustainable and have great financial potential in the current volatile period of the stock market.
From the end of 2021, Vinamilk and its member companies announced that they are implementing large projects, attracting investors because of their growth potential in the future. Specifically, with member company Vilico, Vinamilk is investing in Hung Yen dairy factory with VND 4,600 billion. This unit is also working with Japanese partner Sojitz to implement a beef project with a scale of up to 30,000 heads, an investment of VND 2,985 billion, expected to be on the market in 2023.
At the end of May, Vinamilk and Moc Chau Milk kicked off the “Moc Chau Milk Paradise Complex” with an investment of VND 3,150 billion on an area of 170 hectares.
Phase 1 of the Lao-Jagro farm project is being completed on a total area of 5,000ha. It is expected that at the beginning of the third quarter of 2022, purebred dairy cows imported directly from the US will also be brought to the farm.
With long-term development potential and advantages in finance and strategic management, it can be said that VNM stock has always been favored by many securities companies and investment funds.