Morning Brief

VN-Index increased with weak turnover, MWG

Technical Analysis

- VN-Index snapped yesterday its streak of four losses by increasing 1%. However, the turnover of HOSE was weak, indicating the gain was not very solid. The index is expected to test its MA5, MA20 resistance at 1,263-1,270 before declining.

Fundamental Analysis

MWG [Rating: M-PF] – Complete capital raising of BHX

- MWG announced yesterday to complete Bach Hoa Xanh (BHX)'s private placement with a stake sale of 5% in April 2024. The proceeds from this will be used to finance BHX's general operations and development.

- CDH Investments (through Green Bee 2 Private Limited) is the sole buyer of the above stake sale.

- According to Reuters, the deal is valued at VND1.8tn (USD72mn) for a 5% stake sale, which implies a full valuation of USD1.45bn for BHX. Neither MWG nor CDH has officially disclosed the valuation.

- We currently have a target price of VND54,800/share for MWG.

Other news

- As of the end of March, Vietnam had disbursed nearly VND90 trillion (USD3.75 bn) for public investment, up 3.32% y/y and meeting 13.67% of the target assigned by the prime minister, according to the government.

- Vietnam earned USD92.88 bn from exports in the first quarter (Q1) of this year, up 16.8% y/y, said the General Department of Vietnam Customs on April 9. In January-March, Vietnam recorded a total import-export value of USD177.88 bn and a trade surplus of USD7.88 bn.