According to the financial report of VietinBank Securities Joint Stock Company (CTS), the profit from the sale of financial assets recognized through profit/loss (FVTPL) in the second quarter of 2023 surged from VND 15.8 billion in the same period last year to over VND 152 billion thanks to the sale of unlisted shares.
Specifically, CTS sold over 4.7 million unlisted shares for a total value of VND 141 billion (equivalent to VND 30,000 per share). The original purchase price was over VND 24 billion (equivalent to VND 5,100 per share). CTS made a profit of VND 117 billion.
The report also indicated that the value of CTS's unlisted stock investments decreased sharply due to the sale of shares in Truong Hai Auto Corporation ( Thaco ). This means that CTS has sold a portion of its Thaco shares.
With a share price of 30,000 VND/share and nearly 3.05 billion shares outstanding, Thaco is valued at 91,500 billion VND (approximately 3.8 billion USD).
Therefore, compared to the price at which Thaco issued shares privately to strategic shareholder Jardine Cycle & Carriage Limited (JC&C) in 2019, this figure is significantly lower.
According to the sale plan to JC&C, Thaco issued more than 30.3 million shares (equivalent to 1.82% of outstanding shares) at a price of up to VND 128,500 per share. At that time, Thaco was valued at up to USD 9.24 billion.
After nearly four years, Thaco's valuation has plummeted dramatically.
How is Thaco doing business?
Truong Hai Group Joint Stock Company (Truong Hai Group), formerly known as Truong Hai Automobile Joint Stock Company (Thaco), was established on April 29, 1997, in Dong Nai province . The founder is Mr. Tran Ba Duong, who is currently the Chairman of the Board of Directors.
Currently, Thaco is a diversified industrial group comprising: Thaco Auto (automobiles), Thaco Agri (agriculture and forestry); Thaco Industries (mechanical engineering and supporting industries), Thadico (investment and construction), Thilogi (logistics) and Thiso (trade and services).
In late June 2023, according to Reuters, Thaco may sell 20% of its shares in Thaco Auto. Thaco Auto is valued at approximately $5 billion. The proceeds will be used to invest in real estate projects.
Mr. Nguyen Hung Minh, Vice Chairman of the Board of Directors of Truong Hai Group (Thaco Group), said that Thaco, together with its consulting unit, Ho Chi Minh City Securities Corporation (HSC), is working to sell 10% of Thaco Auto's shares. This new share issuance is expected to be completed this year.
Simultaneously, Thaco's 2018 ESOP shareholders were converted, transforming Thaco Auto into a publicly traded joint-stock company. The company plans to list on the stock market within the next three years.
Mr. Minh stated that the capital raised from the new share issuance will be used to support production and business operations, expand the retail system, and develop new products for Thaco Auto in the future.
Thaco Auto is a member of Thaco Group and also its flagship unit. Thaco Auto specializes in manufacturing, assembling, distributing, and retailing vehicles under the KIA, Mazda, Peugeot, and BMW brands, with a system of nearly 400 retail showrooms nationwide and a production complex with 7 factories (KIA, Thaco Royal, Mazda, Luxury Car factory, motorcycle factory, bus factory, truck and specialized vehicle factory) located in Chu Lai Industrial Park (Quang Nam).
Truong Hai is known as a private enterprise owned by the family of Mr. Tran Ba Duong and Ms. Vien Dieu Hoa. This enterprise is no longer a public company and is not required to disclose information.
Over the past decade, Thaco has expanded into many sectors, including agriculture, real estate, retail, and logistics.
In 2023, billionaire Tran Ba Duong's conglomerate continued to set ambitious goals. In the real estate sector, Thadico - Dai Quang Minh will accelerate the development of its existing land bank, with plans to commence dozens of commercial projects, totaling trillions of VND in investment in 2023.
Previously, Thaco Group delegated the management and responsibility for investment and development of industrial parks, urban areas, real estate, transportation, and technical infrastructure projects to Dai Quang Minh Real Estate Investment Joint Stock Company (Thadico).
Thadico will commence construction on 24 projects and complete the handover of 3 projects in 2023. The total investment value disbursed during the year is VND 6,731 billion.
In 2022, Thaco recorded a profit of VND 7,400 billion but its liabilities remained high, exceeding VND 104,000 billion (USD 4.4 billion). However, the debt-to-equity ratio increased sharply compared to the previous year, from 1.76 times at the end of 2021 to 2.16 times at the end of 2022.
At the end of last year, Thaco recorded equity of VND 48,445 billion. Thaco recorded bond debt as a ratio of 0.17 times its equity. This means Thaco currently has approximately VND 8,200 billion in outstanding bond debt.
According to the 2023 list of the world's dollar billionaires published by Forbes magazine (USA) in early April, Vietnam has 6 representatives. Vietnamese billionaires have a combined net worth of $12.6 billion, a decrease of $8.6 billion compared to 2022. However, the assets of the family of Thaco Chairman Tran Ba Duong remain unchanged at $1.5 billion.
Mr. Tran Ba Duong is famous for his large-scale Sala real estate project in the highly sought-after Thu Thiem area (Ho Chi Minh City). Dai Quang Minh Group once recorded significant revenue from this project.
He also achieved tremendous success with Thaco and made a breakthrough thanks to his investment in Thu Thiem. However, this billionaire faced a difficult period in rescuing HAGL Agrico.
HAGL Agrico (HNG) is an agricultural enterprise with a large land area, but modest revenue and profits. Rising prices of fertilizers and agricultural supplies, along with soaring transportation costs over the past year, have made things difficult for agricultural businesses like HNG.
Thaco, owned by Mr. Tran Ba Duong, has invested billions of USD in HAGL Agrico, but the company's recovery has been quite slow.
At the 2021 extraordinary general meeting, Mr. Tran Ba Duong stated that his only hope in joining HAGL Agrico was to help the company overcome its difficulties and to give the country a large-scale agricultural enterprise operating under an industrial production model.
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