As of the end of March 13, the stock market witnessed a lively trading session as the VN-Index surged by a strong 25.5 points to reach 1,270 points. On HoSE exchange, the market liquidity reached 26,292 billion VND (over 1 billion USD) with 433 green tickers, five times the number of declining tickers.
In the midst of the bullish market, the VEF stock of VEFAC JSC (Vietnam Exhibition Fair Center) soared to the ceiling price of 180,500 VND/share. Since the beginning of the year, the stock price of VEF has increased by 63%. This is also the highest price that this stock has recorded since June 2022.
With the current price, the market capitalization of VEFAC has reached 30,071 billion VND (about 1.2 billion USD). Thus, the value of this enterprise is on par with Vietnam Airlines or Khang Dien, even surpassing VNDirect, Kinh Bac, Viglacera, Phat Dat, FPT Retail…
As of December 31, 2023, the total assets of VEFAC reached over 9,000 billion VND. Of course, the amount of assets owned by this enterprise is much lower than the aforementioned companies.
VEFAC is known as a subsidiary of Vingroup (ticker symbol: VIC), as the conglomerate owns more than 83% of the capital. At the same time, the company is also known as the owner of the “golden land” at 148 Giang Vo, and the $1.5 billion mega-project in Dong Anh.
Specifically, according to the 2022 annual report, VEFAC stated that in Dong Anh, the company is implementing two projects: New Urban Area in Xuan Canh, Dong Hoi, Mai Lam communes (with a total investment of about 34,879 billion VND), and the National Exhibition Fair Center (over 7,336 billion VND). These two projects have a total area of over 300 hectares, 15 kilometers away from the center of Hanoi and adjacent to the planned road connecting from Tu Lien Bridge to Ring Road 3.
Both projects were approved for investment in June 2020 by Hanoi. As of the time of the annual report, 90 hectares have been cleared for the National Exhibition Fair Center project, and 219 out of 265 hectares have been cleared for the New Urban Area project.
One special thing about this company is that despite its low revenue ranging from a few hundred million to several billion VND, it still reports hundreds of billions of VND in profits each quarter. For example, in 2023, with a revenue of 9 billion VND, nearly 10 times that of the previous year. Thanks to financial activities generating revenue of 564 billion VND, VEFAC’s profit in the past year reached 435 billion VND, a 30% increase compared to the previous year. This is the company’s record-high profit to date.
In fact, not only in 2023, but in previous years, the profits of this enterprise did not come from the revenue from its main business activities, but mostly from financial activities.
As of December 31, 2023, VEF’s cash and cash equivalents reached 1,330 billion VND. Of which, nearly 1,320 billion VND is equivalent to cash including amounts recoverable within less than 3 months at an interest rate of 8.5% per annum.
As of Q4/2024, VEFAC’s total liabilities reached 6,727 billion VND, all of which come from short-term debt. VEFAC’s total assets reached 9,803 billion VND, an increase of nearly 13% compared to the end of the previous year.
VEFAC’s inventory value reached 2,463 billion VND, an increase of 2.4 times compared to the end of the previous year. The inventory value of VEFAC is entirely due to expenses related to the implementation of the New Urban Area project in Dong Anh district (Hanoi).
The amount of unfinished construction costs amounted to more than 2,641 billion VND for the projects: Commercial Service and Housing Complex at 148 Giang Vo, Ba Dinh, Hanoi; National Exhibition Fair Center; New Urban Area investment project in Dong Anh; Urban Functional Area project on Thang Long Boulevard.
