Vietnam's logistics giant changes floors

Information about Viettel Post Corporation's VTP stock officially moving from UPCoM to HOSE on March 12 has attracted the attention of the market, as VTP is expected to be included in the major index baskets of HOSE.

Stocks hit record highs

The information about changing the listing floor was the "catalyst" that helped VTP stock become one of the stocks with the strongest price increase in the past three months.

From the beginning of November 2023 to February 29, 2024, VTP shares recorded an increase of 92% to VND 78,400/share, which is also the closing price of VTP's last trading session on UPCoM.

Therefore, with the reference price of VND 65,400/share, VTP shares are expected to likely have room to increase to the ceiling of 20% in the first trading session on HOSE.

In 2023, Viettel Post recorded revenue of VND 19,590 billion and profit after tax of more than VND 380 billion, an increase of 49% compared to 2022.

In addition, information about Viettel Post's thriving business performance in the past year also strengthened the confidence of investors who decided to become shareholders of this company. In 2023, Viettel Post recorded revenue of VND 19,590 billion and profit after tax of more than VND 380 billion, an increase of 49% compared to 2022. Viettel Post's postal output in 2023 also recorded an increase of 43% compared to 2022. The core delivery sector grew by 29.1%, 3.3 times higher than the overall growth of the postal industry (8.9%). In 2023, the company reached a historic milestone with 2 million orders/day through the system, which is also a record for this enterprise since its operation in 1997. VTP is also a business that many investors are interested in as it regularly pays annual dividends in both cash and shares with a total payout of around 20%.

The company's ambition in the next 5 years, as shared by Mr. Hoang Trung Thanh, General Director of Viettel Post, is that the company's revenue must be 10 times higher than in 2023, corresponding to a growth rate of 60-65%/year. In addition, in terms of technology, in addition to pioneering the application of AGV robots, Viettel Post has completely mastered the software and control system, moving towards cooperation with other units in Viettel Group to produce more hardware optimized for operations.

The recovery of VTP shares since the beginning of November 2023 has been supported by the net buying of foreign investors, a similar trend that has also been identified during the period when the stock has received a price increase in the recent period. With the transfer to HOSE, VTP is expected to continue to maintain the positive movement of this capital flow in the coming time, especially the interest of large institutional investors and investment funds when the enterprise has proven its internal factors such as finance, business, and development potential to be eligible to be listed on HOSE. VTP is also the only stock on UPCoM that is in the top investment of all 3 funds under Vietcombank Fund Management Company (VCBF).

The move from registering for trading on UPCoM to listing on HOSE is a "buffer" that helps VTP shares enter the list of stocks allowed to use margin, thereby increasing liquidity, as well as raising VTP's capitalization in the future. With a charter capital of nearly VND 1,218 billion, if calculated at the last trading session on February 29, VTP's capitalization reached more than VND 9,500 billion, 3 times higher than at the beginning of 2023.

Although stock fluctuations will be governed by many factors, from macro, market developments to internal business. However, the time VTP changes floors is being seen as converging positive factors, not to mention the "reputation" as an important member of the Military Industry - Telecommunications Group (Viettel).

“Bright Spot” of Logistics Industry

By the end of 2023, the global logistics market size had reached nearly 9 trillion USD and was expected to increase to 18.23 trillion USD by 2030. Asia-Pacific is considered the largest and most dynamically developing region. Meanwhile, Vietnam is in the top 10 out of 50 emerging logistics markets in the world. The Vietnamese government has focused on building and developing logistics infrastructure, promoting it to become a key economic sector of the country, actively contributing to improving the overall competitiveness of the economy. A series of solutions have been implemented drastically and synchronously to create an environment and mechanisms to encourage strong development of logistics infrastructure and services. The goal is that by 2025, the logistics industry will contribute 5-6% to GDP.

Viettel Post will expand its market to countries such as Australia and Europe with the vision of making Vietnam a global logistics center.

As a member of Viettel, Viettel Post's logistics ecosystem is based on a modern, high-tech infrastructure platform, providing a full range of services such as: delivery, supply chain (warehousing, transportation, forwarding ...), cross-border e-commerce ... to meet the needs of using logistics services for large domestic and foreign corporate customers. In 2024, VTP will continue its "Go Global" strategy by promoting the operations of 2 subsidiaries in the Myanmar and Cambodia markets; surveying investment in Laos and planning to open representative offices in Thailand and China.

Not only stopping at conquering the Asian market, following the investment phase in Asia, Viettel Post will expand its market to countries such as Australia and Europe with the vision of making Vietnam a global logistics center. Mr. Hoang Trung Thanh - General Director of Viettel Post emphasized, "Viettel Post will lay the foundation for successfully building logistics fields such as supply chain systems, logistics parks, smart border gates, cross-border logistics infrastructure systems, international railways. This helps Viettel Post to effectively and synchronously connect industrial park centers, farming areas with traffic intersections of roads, waterways, railways, seaports, airports, and border gate systems."

Up to now, Viettel Post is the only logistics enterprise in Vietnam investing in the international market. Viettel Post not only affirms its leading strength in the domestic logistics sector but also demonstrates its ambition to reach out and become a prestigious global logistics enterprise.

In the country, Viettel Post is gradually realizing its goal of becoming a national logistics infrastructure. According to the Company's assessment, the strong development of e-commerce is posing demands for changes in network infrastructure and the way to exploit the last mile. Viettel Post is also a pioneer in forming a smart sorting technology complex that applies the latest technologies in the world, automating the operating process, in the stages of storage, picking, packaging, and sorting. This modern technology complex is completely owned by Viettel from design, integration and operation, including both hardware and software.

Viettel Post's actions and steps are affirming that logistics is one of the four key areas contributing to the Group's future development.

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