Determine the “sport” to amass QNS

The “sport” of buying QNS immediately turned in style within the media, after an evaluation report of a securities firm.

Masan Group (MSN) – one of many “gamers” reported by this report has denied on VietTimes. “The Masan facet has not invested in any QNS shares,” the MSN consultant confirmed and mentioned that he would work with the report issuer to request a correction.

“We notice that this data is deceptive because of the subjectivity within the reporting means of the analyst”, the assertion from the Securities Firm and the pressing motion of withdrawing that report can soothe. obtained MSN however didn’t quell the rumors out there.

“Eliminated as a result of the ‘sport’ was revealed. However that data should be right,” an investor messaged in room its securities. For a very long time out there, Masan has been the default key phrase for M&A speculations within the dairy trade.

The general public believes that ultimately Masan should add milk to his basket of the preferred client items in Vietnam. Actually, MSN leaders have repeatedly confirmed this plan publicly on the Common Assembly of Shareholders.

Knowledge of Euromonitor The dimensions of Vietnam’s dairy market is estimated at 135,000 billion VND (about 6 billion USD) in 2020 and is predicted to proceed to develop quickly within the coming time. That’s, it’s greater and extra fertile than all of the industries that Masan’s client items empire has. Even when it is beer, wine, instantaneous noodles, sauces, espresso…

However to date, Masan nonetheless has no milk. And the general public continues to be ready and nonetheless gossiping. Like within the QNS “sport” this time!

Essentially the most superb M&A goal within the dairy trade!

It’s not an exaggeration to say that QNS is assembly all of the elements to develop into essentially the most superb acquisition goal of Vietnam’s dairy trade in the meanwhile.

First, with Vinasoy, QNS is at the moment ranked 4th among the many 7 largest firms, sharing 85.7% market share in Vietnam’s dairy trade in 2020 – based on SSI’s estimates, together with Vinamilk (43.3%); FrieslandCampia (15.8%); Nutifood (7.2%); TH True Milk (6.1%); Abbott (5%); Moc Chau Milk (2.1%).

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When the dairy trade champion is Vinamilk’s unwavering monopoly, within the remaining group, the market share hole shouldn’t be too completely different. At the moment, If any of them acquires QNS, they’ll have a further 6.2% market share that Vinasoy holds and may have a place to observe Vinamilk on the dairy map of Vietnam..

Much more helpful when Vinasoy once more follows the area of interest market and dominates 85.8% of the home paper field soy milk market share in 2020 – based on a report by Nielsen Vietnam. Straight affected by Covid-19, Vinasoy’s gross sales quantity in 2020 nonetheless reached 250 million liters.

In accordance with the Model Foodprint report of Kantar Worldpanel, Vinasoy ranked 2nd within the prime 10 most chosen producers in rural Vietnam; whereas Vinasoy’s Fami model holds the seventh place in city areas in dairy merchandise and milk substitutes.

However QNS shouldn’t be solely Vinasoy. That is additionally the main sugar producer, accounting for 11% of the nation’s sugar manufacturing from sugarcane within the 2019-2020 crop yr. As well as, QNS additionally owns a BiscaFun confectionery manufacturing unit with a capability of 10,000 tons/yr. , Dung Quat Lager Beer brewery with a capability of 100 million liters/yr, Thach Bich mineral water manufacturing unit with a capability of 150 million liters/yr.

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The monetary statements present the spectacular efficiency of QNS, with the primary half of 2021 income reaching VND 3,680 billion, revenue after tax reaching VND 521 billion, EPS reaching VND 1,712/share. Of the entire property of VND 9,306 billion of QNS as of June 30, 2021, fairness accounted for 70%, with a price of VND 6,513 billion.

If the above elements are thought of as needed circumstances for a dairy M&A goal, QNS additionally has adequate circumstances. It’s “acquirable”.

QNS is a uncommon – if not the one – firm within the dairy market that has not belonged to anybody, or has not been dominated by any giants.

Established within the 70s, previously a state-owned enterprise underneath the Ministry of Agriculture and Rural Improvement, formally remodeled right into a joint inventory firm in 2006. After the state divested all of its operations. capital in QNS by promoting to outdoors traders and staff within the firm in June 2009, most of QNS shares are held by staff.

QNS’s possession construction is fragmented and for a few years, no shareholder has dominated the corporate. QNS’s largest shareholder is Thanh Phat Buying and selling One Member Firm Restricted, holding 15.8%. However Thanh Phat is a completely owned subsidiary of QNS, so the character and variety of these QNS shares are additionally the corporate’s treasury shares.

When UPCoM was listed on the finish of 2016, the possession construction of QNS was nonetheless very fragmented, with 2,959 shareholders, of which 2,952 particular person shareholders (largely staff of the corporate) held as much as 78.2% of the capital. share. The ruling group at QNS for a few years, which is the corporate’s management, at the moment solely holds about 17.5% of the shares, based on VietTimes’ calculations, together with possession of associated folks.

QNS is subsequently extremely popular, which as some folks name it “ownerless” – the best state to amass.

Who desires to amass QNS?

Not just one however many “sharks” noticed the chance in QNS. The ruling group in QNS is extra seen; In addition to, they see a threat: the corporate is acquired, and they’re faraway from the management construction.

The issue is that the QNS possession construction is just too fragmented. QNS is doing very properly, the corporate pays excellent dividends, so the small shareholders/staff of the corporate have little incentive to promote brief. Gathering numerous items from small objects, it, shouldn’t be easy. Furthermore, the “sport” has many “sharks”. So, regardless of being equitized since 2006, and listed on UPCoM since 2016, QNS continues to be “ownerless” as talked about.

However the “sharks” is not going to move up the chance. One attainable possibility is to gather objects silently. Affected person and discreet!

“Sharks” getting into QNS are principally divided into 2 teams, based mostly on objective: one is to monetary funding, two is to management the corporate. Group 1 will attempt to promote it again to Group 2; On the identical time, group 2 may also search to purchase again from group 1.

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QNS possession construction (assumption)

Thus far, a number of “sharks” have been recognized: Group VinaCapital, group Vietnamese dragon (VDS), group Nutifood and group Vietnamese model (VCI). Regardless of receiving many speculations, however based on the author’s analysis, QNS “sport” has no Masan group – at the least for now; There may be additionally no signal of “shopping for on behalf of”.

The presence of VinaCapital group has been public because the starting of 2017. The most recent announcement exhibits that this group holds about 6.28% of shares in QNS. VinaCapital’s funding offers have historically been for monetary funding functions. Previously, they as soon as poured capital right into a dairy enterprise, the Worldwide Dairy Joint Inventory Firm (IDP), however final July they divested for the VCI group.

Viet Dragon group has been seen just lately, when their personnel – Director Nguyen Van Dong – was elected to the Board of Administrators of QNS, with the authorization of shareholders holding 29.35 million shares, equal to eight.22 % of constitution capital of QNS. Nonetheless, the monetary statements of VDS present that this securities firm solely owns greater than Three million shares of QNS. These shares have been collected because the finish of 2019.

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Nutifood is motivated to enter QNS. (Picture: Web)

VDS has the flexibility to enter QNS for the aim of monetary funding or “dealing”. An evaluation report of a giant securities firm states that VDS Director Nguyen Van Dong is the consultant of an investor associated to Nutifood group.

The Nutifood group is claimed to personal about 9% of QNS shares. If the details about Nutifood group QNS is right, the author believes that this dairy group has the ambition to personal and management QNS. QNS, as analyzed originally of the article, is the best piece for Nutifood’s aim of increasing market share and diversifying merchandise. The author additionally believes that Nutifood has many motivations to amass QNS.

As for the VCI group, based on VietTimes’ analysis, they’ve collected greater than 4% of QNS shares. These shares had been collected by VCI from the earlier yr and at the moment are recorded within the different shares sub-account within the AFS part.

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IDP elevated “makeover” when it returned to the Vietnamese group.

As an skilled in “dealing” M&A for giant companies and a grasp of monetary funding, the author believes that the preliminary aim of VCI when getting into QNS is to regulate and progress to proudly owning the corporate it’s holding. holds 6.2% market share of Vietnam’s dairy trade – just like Nutifood’s objective.

Keep in mind, the Vietnamese group has acquired IDP (and Lothamilk) and decided to do properly within the dairy trade. Set a income goal of VND 5,000 billion for IDP this yr, however the ambition of CEO To Hai and colleagues goes past that.

To develop into the main dairy firm in Vietnam, QNS is essentially the most attainable “shortcut”!

There’s a downside that the variety of shares that the “sharks” talked about above are nonetheless restricted. It’s miles from the percentages for them to have a say in QNS, not to mention take management.

The “key” in all probability lies within the variety of treasury shares of QNS. Within the annual stories, QNS all acknowledged that their treasury shares had been 0. However within the monetary statements, they recorded the variety of shares that Thanh Phat holds (accounting for 15.6% of constitution capital) as Treasury shares. The present regulation additionally stipulates that these shares are treasury shares.

Already a treasury inventory, if shareholders (together with the “sharks”) request, QNS will ultimately need to have an answer. Then the chance will open…/.

Ninh Giang