Sunday, October 23 2016


Vinamilk’s $7.9b value the highest since 2007

Update: July, 16/2016 - 09:31
Vinamilk's capitalisation is now nearly US$8 billion, leading the local market in terms of capital. — Photo

HÀ NỘI — Giant Vietnamese dairy firm Vinamilk (VNM)’s market capitalisation is now nearly US$8 billion, allowing it to remain the market leader in terms of capital.

With shares ending at VNĐ147,000 each on July 15, the firm is valued at about $7.9 billion in the market. VNM shares became one of the best-sellers in market after the Government announced a plan to divest all state capital from the firm last year.

The current price of VNM has reached its highest level since late 2007, marking a more than 57 per cent increase year-on-year and nearly 26 fold increase compared with the first day of listing on January 19, 2006.

In the local market, more than 1.2 million shares of VNM were worth VNĐ176.5 trillion ($7.9 billion). Vietcombank, in second place, was worth VNĐ143 trillion and Vietnam Gas Corporation (GAS) was worth VNĐ121 trillion.

VNM’s shareholders benefited from the gains made by the firm, getting a 60 per cent dividend, or VNĐ6.4 trillion, in 2016.

VNM was a money-maker for a long time for the State Capital and Investment Corporation (SCIC), which held more than 45 per cent of state capital in the firm.

SCIC’s investment gained more than $1 billion after the Government announced a divestment plan. If it divests now, SCIC will earn at least $3.56 billion. If it continues to hold shares, SCIC will get VNĐ3.2 trillion ($145 million) as dividend this year.

Last year, SCIC received more than VNĐ2.7 trillion as cash dividend from the firm. SCIC leaders said they had submitted the divestment plan to the Government, which would decide the time and method of divestment that best benefits the State’s budget.

Singapore’s F&N Dairy Investments Pte Ltd was also one of the major gainers from their investment in Vinamilk. Owning more than 11 per cent equity, valued at about VNĐ19.​​4 trillion, the fund expects to receive nearly VNĐ800 billion in dividend.

Arisaig Asia Consumer Fund Limited, which has a stake worth VNĐ2.9 trillion, will also gain VNĐ120 billion in dividend.

With nearly 3.4 million shares, Vinamilk CEO Mai Kiều Liên got VNĐ500 billion in stock value and received about VNĐ20 billion as this year’s dividend.

Recently, the company decided to sell 9.44 million preferred shares to officers and employees at just VNĐ356 billion, while the market valuation is pegged at more than VNĐ1.3 trillion.

In 2016, Vinamilk plans to earn VNĐ44.5 trillion in revenue and VNĐ8.3 trillion in after-tax profit, an increase of 11 per cent and 6 per cent, respectively, over 2015. Vinamilk is expanding its investments in the United States, Europe and Australia. — VNS


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