“Hot” season of shareholder meeting in 2022

April – May is still the “hot” period of the stock market when it is both the season for announcing the first quarter business results and the season for organizing the stock market. Shareholders’ meetingwhere there are candid questions from investors for businesses, and for many businesses is the only time of the year when leaders will appear in front of the media and answer questions directly from shareholders.

Bank shareholders’ meeting “hot” about bad debt, bonds

Securities and the health of listed companies are still considered a test of the economy, so the general meeting of shareholders is also a place where business leaders receive many “difficult” questions, especially after: the economy was affected by the pandemic.

Banking is one of the industries that has received a lot of attention, especially from the story related to the recent stabilization and healing of the bond market or the concern about potential bad debt when businesses face many difficulties. difficulties after the period of influence from the COVID-19 epidemic. In response to questions from shareholders, the bank’s representatives all had affirmations that made shareholders feel secure.

Ms. Nguyen Duc Thach Diem, General Director, Saigon Thuong Tin Commercial Joint Stock Bank said: “The debt of the business is secured by shares, but behind it are many real estate projects, which we have claimed. 2,600 billion dong already, 600 billion dong is still being completed, so that shareholders can see that the quality of the loan we make is still good.”

Mr. Ho Hung Anh, Chairman of Vietnam Technological and Commercial Joint Stock Bank, said: “To say that the bond tightening is a bit too much, it is a purification and stabilization of the market, I believe it is good, opening up prospects and opportunities for investors. bond investments in good, rated issuers”.

Stock dividends in volatile market times are not necessarily a gift

Bank leaders still seem confident with their ability to control bad debts, many banks still have positive business plans in 2022. One problem is that many bank shareholders are also excited about the plan. Increasing capital of many banks by issuing shares, which means shareholders receive dividends, is this a gift?

According to statistics, in 2022, there are 16 banks that have plans to increase capital, in addition to the trio of state-owned banks, the most impressive is VPBank with a plan to increase 79 trillion (up 76% compared to last year). The main motivation for banks to rapidly increase capital is that they have to meet capital adequacy requirements according to Basel II standards, furthermore, Basel III. However, according to many experts in the short term, the amount of dividends that banks are about to issue this time is not necessarily a gift.

Mr. La Giang Trung, General Director of Passion Investment, commented: “The prospect of banking profits this year is still good, this year’s profit growth driver is still good, but in the context of the market’s correction, the stock will continue to grow. IPO is not really good for shareholders.

Stock dividends during volatile market times are not necessarily a gift. Many businesses also give in-kind gifts to shareholders such as products and services provided by the business or even many parties also give money and gold. In addition to gratitude, it is also a form of marketing, showing the capacity of the business to attract shareholders, but perhaps the most attractive thing to shareholders is still the ability to grow business results of the business.

The General Meeting of Shareholders is also a season for shareholders to have a look at the business’s 2022 business plan from which to make appropriate investment decisions.

Real estate and construction are groups with many businesses that set quite optimistic business plans this year. Cienco 4 (Cienco4) with an expected increase of 348%, Hoa Binh Construction with a growth rate of 329%, KBC is leading the profit growth of the whole market with an increase of 474%. The industry leader VHM is planning to reduce.

The group of export businesses also mostly set high profit plans in 2022 such as TCM with 91% growth. The retail group will grow by an average of 25% in 2022. In the opposite direction, most oil and gas enterprises have set business targets that are backward compared to 2021: BSR down 79%, GAS down 20%.

Similarly, steel group, HPG decreased by 14-28% HSG of Hoa Sen Group decreased by 42%. Foods with MSN set a profit target of about 6.8 – 7.5 trillion, down 20 – 30% in 2022, Vinamilk down 8%.

Looking at the above 2022 business plan, in addition to quite clear expectations from the retail and export groups following the story of economic recovery and consumption, there is quite a contradiction between business groups: large enterprises seems to be quite cautious while the group of small and medium-cap enterprises is optimistic.

Each business will have its own reasons to set a plan high or low. There are state-owned enterprises that traditionally set low business plans, such as oil and gas, although the prospect of benefiting from oil prices is quite high. According to experts, some industries, such as construction, are being overconfident compared to the context. However, for these business owners, sometimes setting a high plan for shareholders’ peace of mind is better than giving them a harsh truth.

Most large business owners frankly admit that at this time, industries where input costs are heavy on raw materials will have a bad year in 2022 due to inflation and escalating commodity prices globally. but not a big story to change the underlying values ​​of the business.

Mr. Danny Le, General Director, Masan Group Joint Stock Company, said: “The rising costs, the difficulty of the global supply chain is not only a challenge for Masan but also the business community, to tell us. If there is any radical solution right now, the answer is No, but we are also working hard with the parties to stabilize the logistics problem, find alternative domestic sourcing sources. It’s a cyclical story, it’s short-term, and when we invest in a business, it’s medium and long-term.”

The question of stock price has also continuously heated up the halls of the general meeting of shareholders over the past time when the stock price is subject to adjustment according to the general market context and many investors have the view that the business is really good. stock prices keep falling.

Purging and correcting the market will create disturbances that cause short-term speculative cash flows to shrink, but will attract large and long-term cash flows. According to SGI Capital, we have a sliding valuation for VN30 in 2022 at 11 times, a rare low, almost equivalent to the crisis periods.

The peak of cheap and easy money has passed, the economy and stock market are transitioning to a new state. There, more opportunities come from the internal movement of each business, rising up in the recovering economic environment. From here, competitiveness and the ability to take advantage of opportunities for growth will be the key to differentiating each business and the stock they represent.

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