Viettel Global Stock Value Surges, at $8.1 Billion Market Cap
As of the close of trading on April 29th, Viettel Global’s (VGI) stock reached 67,600 dong per share, which is its highest recorded value since its listing on the UPCoM exchange. The share price has increased by 162% year-to-date, with trading volumes ranging from 1 to 2 million units per session.
With this new valuation, the market capitalization of Viettel Global stands at 205,761 billion dong (approx. $8.1 billion), representing a significant increase of 127,200 billion dong ($5 billion) since the beginning of the year. This milestone propels the Viettel subsidiary to the third position among the most valuable companies on the Vietnamese stock market, behind only BIDV and Vietcombank, and surpassing other blue-chip firms like ACV, Vinhomes, VietinBank, Vingroup, and PV Gas.
Viettel Global is currently one of the largest Vietnamese investors in foreign markets, operating in nine countries across Asia, Africa, and the Americas, reaching a total population of over 200 million people. Notably, the company holds a dominant market share in six key markets: Myanmar, Cambodia, Laos, East Timor, and Burundi. These emerging economies offer significant growth potential for the business. The Vietnam Military Telecommunications Group (Viettel) is the majority shareholder of Viettel Global, owning approximately 99% of its shares.
The significant upward momentum in VGI’s stock price during the first quarter can be attributed to the strong financial performance of Viettel Global. In Q1 2024, the company’s sales and services revenue jumped by 22% to reach 7,907 billion dong. This impressive growth rate is particularly notable in the telecommunications industry, which is approaching saturation globally.
All nine of Viettel Global’s operating markets experienced growth, with five of them achieving double-digit increases. Lumitel in Burundi saw a 29% rise, Unitel in Laos grew by 24%, Movitel in Mozambique increased by 22%, Natcom in Haiti by 18%, and Metfone in Cambodia experienced a 13% increase in revenue. Driven by these positive revenue gains, Viettel Global’s consolidated post-tax profit for Q1 2024 stood at 1,633 billion dong, a remarkable 175% increase year-over-year.
Viettel Global has achieved profitability for two consecutive years, despite facing challenges such as currency fluctuations and political instability in some of its operating countries.
According to the company’s 2023 Annual Report, published on April 19th, Viettel Global aims to maintain double-digit growth rates in 2024, with traditional telecommunications services increasing by over 10% and non-telecommunications services growing between 20% and 30%. To drive growth, Asian markets will focus on expanding IT infrastructure, data centers, cloud platforms, and big data solutions.
In the African and American markets, Viettel Global will prioritize developing new digital services leveraging 4G technology and broadband internet access, preparing for the transition to 5G to meet the evolving needs of users.
