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VINGROUP JOINT STOCK COMPANY

VINGROUP JOINT STOCK COMPANY


Project Description

OVERVIEW

VinGroup Joint Stock Company (VIC), formerly known as Vietnam General Trading Joint Stock Company, was established in 2002. The Group has its main business in real estate, tourist resorts – entertainment, retail, manufacturing industry and social infrastructure. VIC is the biggest real estate investor in Vietnam with its land reserve of 177 million m2. VIC has already put 12 projects into operation with over 31,000 apartments, villas, and street houses. In retail real estate, the Group has already developed and operated 46 trading centers with a total area of 1.2 million square meters. VinCommerce has already developed a network of more than 1,200 retail spots, including VinMart supermarkets, VinMart+ convenience shops, VinPro electric appliance supermarkets. In addition, VinCommerce retails goods through online sale channel i.e. Adayroi. Since 2018, VinFast automobile and motorcyle project has come into operation with a designed capacity of 250,000 automobiles and 250.000 electric motorcycles per year in the early stage. In addition, VIC also invested and developed social infrastructure in healthcare, education and agriculture. VIC has been listed and traded on Hochiminh Stock Exchange (HOSE) since September 2007.

MAIN BUSINESS

  • Property developer focusing on high- end residential office
  • Hospitality and healthcare
  • Retailing
  • Education
  • Agriculture in terms of vegetable and fruit farming.

MARKET POSITION

  • Real estate: VIC is the biggest real estate investor in Vietnam with its land reserve of 177 million m2. VIC has already put 12 projects into operation with over 31,000 apartments, villas, and street houses. In retail real estate, the Group has already developed and operated 46 trading centers with a total area of 1.2 million square meters.
  • Tourism resort – entertainment: VIC owns 17 Vinpearl resorts and hotels with a scale of over 10,000 rooms in tourist sites of Vietnam, including Ha Long, Nghe An, Ha Tinh, Da Nang, Hoi An, Nha Trang, Cam Ranh, Cầan Tho and Phu Quoc.
  • Retail: VinCommerce has already developed a network of more than 1,200 retail spots, including VinMart supermarkets, VinMart+ convenience shops, VinPro electric appliance supermarkets. In addition, VinCommerce retails goods through online sale channel i.e. Adayroi.
  • Manufacturing industry: Since 2018, VinFast automobile and motorcyle project has come into operation with a designed capacity of 250,000 automobiles and 250.000 electric motorcycles per year in the early stage.
  • Healthcare: VIC owns 06 Vinmec international general hospitals, 02 Vinmec international clinics with a scale of over 1,500 beds.
  • Education: With the number of 19,000 students at 17 Vinschool units, Vinschool has become the biggest private educational system in Vietnam. On 05 March 2018, Vingroup has announced the establishment of  VinUni International University to participate in university education and training.
  • Agriculture: Tập đoàn has invested and developed 14 VinEco green agricultural farms with a cultivating area of appproximately 2,000 hectares. Main products consist of organic vegetables, fruits and flowers.

GROWTH STRATEGY

  • Focus on high-quality, large-scale complex projects in major cities and further expand into selected strategic cities.
  • Grow recurring revenues across targeted consumer segments.
  • Target the growing disposable income of middle and upper-middle class consumers and meet the increasing needs and more diverse demands of targeted customer segments
  •  Further strengthen in-house sales, leasing, project management and property management capabilities.
  • Diversify and increase property income while efficiently managing capital.
  • Increase investment into the retail sector to ensure early detection of consumer trends and achieve the leading position in consumer retail in Vietnam.
  • Expanding into agriculture industry.

PROSPECTIVES

  • VIC is the leading private enterprise in Vietnam with well-recognized brands in residential and commercial real estate, resort hotels and amusement parks, healthcare services, education, and consumer retail.
  • VIC has separated itself from competitors by meeting construction timeline and unrivalled ability to secure land bank in big cities during the 2011-2013 down cycle of Vietnam property market.
  • VIC is able to its international capital market presence and the sophistication in mixing different sources to lower cost of capital.
  • Fast growing recurring income solidifies business resiliency with likelihood of upward revisions.
  • The property market is recovering and supported by new amendement law on housing effective from July 2015 plus stimulating packages hinting higher demand of residential real office and trade centre.
  • Retail could become a big story.

RISK

  • Share overhang from the 2012 convertible bonds
  • Overexpansion risk
  • Unhedged FX exposure
  • Untested market depth for high-end property.