**Nasco, Vietcap, and FPTS: Triumphant Tales of Long-Term Stock Investments**
In addition to core business revenue, long-term stock investments have proven to be lucrative for astute investors such as Noi Bai Airport Services Corporation (Nasco – NAS) with the stock code NCTS, Vietcap Securities (VCI) with the code IDP, and FPT Securities (FPTS) with the code MSH.
Nasco recently announced its audited consolidated financial statements for 2023, showcasing its 1.83 million share investment in Noi Bai Cargo Services Corporation (NCTS – NCT), which has yielded an “enviable” return.
Specifically, Nasco has held NCTS shares for over a decade, initially investing nearly 7 billion VND to purchase 669,469 shares. As of December 31, 2023, Nasco’s investment in NCT was valued at approximately 161 billion VND, a staggering 23 times its cost basis.
Aside from capital gains, Nasco has also received substantial dividends from NCTS. Since the last time NCTS declared a stock dividend, Nasco has received approximately 130 billion VND in cash dividends, averaging over 14 billion VND per year.
Image: Nasco’s 23-fold gain on NCTS after 10+ years of investment.
In a similar story of “investing in one stock and profiting for a lifetime,” FPTS continued to see substantial gains from May Song Hong’s stock code, MSH, in the first quarter of 2024. Notably, the company’s revenue surged during the period, primarily driven by a hefty 85.5 billion VND gain on the revaluation of financial investments, a 388.5% increase year-over-year. Consequently, FPTS posted a quarterly profit of 167 billion VND, an 113% increase.
Despite recent market volatility, FPTS has maintained a positive operating performance, largely attributed to the gains from its MSH holding.
FPTS began acquiring MSH shares in 2011. According to FPTS’s 2021 audited financial statements, as of December 31, 2021, the 6.48 million MSH shares held by FPT Securities had a cost of over 13.6 billion VND, equating to an average purchase price of approximately 2,099 VND per share.
As of March 31, 2024, the investment in MSH had grown to 416.3 billion VND, a remarkable 31-fold increase from the cost basis. Additionally, FPTS has realized further gains from other equity holdings, with their current value exceeding 1.1 billion VND (compared to an original cost of 928 million VND).
Image: FPTS’s 31-fold gain on MSH after 14 years of investment.
Another notable example of the power of long-term investment in the market is Chứng khoán Vietcap’s investment in International Dairy Products (IDP).
As a “latecomer,” having formally acquired a 15% stake in IDP in 2020, Vietcap has already profited nearly 1,800 billion VND from this stock.
Currently, Vietcap’s stake in IDP is over 8.8 million shares. The cost of the investment was 441 billion VND, equivalent to approximately 49,900 VND per share, while IDP’s price on the Upcom exchange continues to soar to 245,000 VND per share.
At the 2023 Annual General Meeting of Shareholders, in response to a shareholder question regarding the potential sale of the IDP investment, Mr. To Hai, Vietcap’s Chairman, affirmed that the company had no plans to sell its IDP shares. “We view IDP as a strategic investment and believe the company has significant potential,” Mr. Hai stated.
He also disclosed that IDP had indeed signed a sales agreement with a Singaporean investor and its employees in early 2023, with a sales price of approximately 258,000 VND per share. However, Mr. Hai expressed that he did not consider this price to be optimal, and Vietcap was expecting a higher valuation.
In terms of its business, Vietcap generated 806 billion VND in revenue in the first quarter of 2024, a 300 billion VND increase year-over-year. The primary driver of revenue during the period was gains from the sale of financial assets (FVTPL), which amounted to 338 billion VND, more than double the previous year.
Image: Vietcap has pocketed around 1,800 billion VND from IDP after just 4 years of investment.
After holding for 14 years, Vietinbank Securities (CTS) reportedly “cashed in” a portion of its THACO investment last year, valuing the auto conglomerate at 3.9 billion USD.
Specifically, prior to the sale, CTS held approximately 14 million THACO shares with a cost basis of 71.9 billion VND, corresponding to an average purchase price of 5,100 VND per share. This investment had such a low cost basis because CTS had invested around 2009 and held the shares since then.
In the second quarter of 2023, CTS reportedly sold over 4.7 million unlisted shares for a total of 141 billion VND; the original purchase price was over 24 billion VND, resulting in a gain of 117 billion VND. Given the decline in the value of the unlisted equity portfolio held by CTS, it is likely that the shares sold by CTS were from Truong Hai Auto Corporation (Thaco). Accordingly, CTS sold 4.7 million Thaco shares for a total of 141 billion VND, equivalent to 30,000 VND per share.
Based on the price of 30,000 VND per share, CTS has achieved a 6-fold gain after holding THACO for 14 years.
