Vinasoy is within the sights of M&A?

Particular member of the Board of Administrators at Quang Ngai Road

The Annual Common Assembly of Shareholders held on April 3, 2021 of Quang Ngai Sugar Joint Inventory Firm (QNS) has elected the Board of Administrators for the time period 2021 – 2025.

A lot of the members of the Board of Administrators of Quang Ngai Highway proceed their time period of workplace; Nonetheless, there’s a particular case. Mr. Nguyen Van Dong has been elected as an unbiased member of the Board of Administrators, which is unprecedented.

Based on his resume, Mr. Dong was born in 1979 with a grasp’s diploma in finance and banking. From March 2021, he holds the place of Managing Director of Rong Viet Securities Joint Inventory Firm (VDSC). Earlier than that, he had practically 9 years working on the College of VDSC Mergers and Acquisitions Advisory Division; practically 5 years as Deputy Head of Company Finance Consulting Division at VDSC…

Mr. Nguyen Van Dong represents 29.35 million shares of QNS, equal to eight.22% of share capital. On the similar time, Rong Viet Securities can be immediately proudly owning Three million QNS shares, equal to 0.84%. The variety of shares represented by Mr. Nguyen Van Dong at present has a market worth of VND 1,373 billion.

It isn’t excluded that Mr. Dong is the title of a bunch of shareholders; could or is probably not associated to Rong Viet Securities. Beforehand, there was no announcement concerning the brand new main shareholder Duong Quang Ngai.

The main points of Mr. Nguyen Van Dong being an professional within the area of mergers and acquisitions, a member of Rong Viet Securities, in addition to the title of a lot of shares, make many individuals consider a “touchdown” on the highway. Quang Ngai is being deliberate.

Actually, the shareholder construction of Quang Ngai Sugar is sort of scattered, three-quarters of the shares are within the arms of small shareholders – most of that are longtime workers of the corporate.

The biggest shareholder is Thanh Phat Firm (a completely owned subsidiary of QNS), holding 15.56%. Mr. Vo Thanh Dang – Common Director who has constantly purchased and elevated possession not too long ago holds 6.45%; alongside together with his spouse, Mrs. Vo Thi Cam Nhung, holds 2.97%. One other notable giant shareholder is VinaCapital’s VOF fund, which owns 6.28% of the shares.

  Director of VDSC receives authorization from a mysterious group of shareholders to join the Board of Directors: Is Vinasoy in the sights of M&A?  - Photo 1.

The “Uncooked Gem” of the Shopper Items Business

Quang Ngai Sugar is taken into account a beautiful firm within the client items business. The market share of this firm within the area of branded soy milk (Vinasoy) has all the time reached over 80% for a few years, even reaching practically 86% in 2020 (in accordance with Nielsen). The sugar cane phase additionally contributes a big proportion to QNS’s income, in addition to that the corporate additionally owns Dung Quat breweries, Thach Bich mineral water, Biscafun confectionery and An Khe biomass energy…

Final yr, QNS recorded VND 6,490 billion in web income and VND 1,053 billion in revenue after tax, down 16% and 18% respectively over the identical interval. ROE at 15.9%, ROA 11.5%, down about 10% in comparison with 2019.

  Director of VDSC receives authorization from a mysterious group of shareholders to join the Board of Directors: Is Vinasoy in the sights of M&A?  - Photo 2.

After a interval of sturdy development, QNS began to decelerate since 2017

In Rong Viet’s funding technique report on the finish of 2021, the securities firm believes that the sugar phase will lead QNS’s development from the upward development in sugar costs. In consequence, each income, revenue and revenue margin of the sugar phase will enhance sharply.

Within the long-term, the soy milk phase is forecast to get better after 2021 and revenue margin will enhance yr by yr. Nonetheless, this yr, the revenue margin of the soy milk phase will slim because of the enhance within the worth of enter supplies together with sugar and soybeans.

QNS can be a extremely regarded firm with sturdy free money move, averaging $78 million yearly.

Concerning the correlation comparability within the client items business, regardless of its excessive effectivity, QNS’s P/E and P/B are decrease than that of firms like VNM, SBT, KDC or MSN.

  Director of VDSC receives authorization from a mysterious group of shareholders to join the Board of Directors: Is Vinasoy in the sights of M&A?  - Photo 3.

Not excluding the potential for M&A, who’s the candidate?

Given the present elements, it’s not shocking if Quang Ngai Road is within the sights of M&A of the “giants” within the client items business.

A exceptional element, the evaluation report of Thanh Cong Securities Firm (TCSC) unexpectedly cited knowledge on the possession of Masan and Nutifood shareholders in Quang Ngai Road. Nonetheless, Masan’s consultant denied this and mentioned that “Masan doesn’t spend money on any QNS shares”. Thanh Cong Securities later additionally corrected that it didn’t imagine there was “analyst mistake” and made a recall.

Though nothing is evident, however the two names talked about above are fairly attention-grabbing if actually within the case of Quang Ngai Duong.

Nutifood is an organization specializing in dietary dairy merchandise with a number one place in Vietnam. In 2020, Nutifood’s income is roughly 400 million USD. Nonetheless, Nutifood’s development momentum has proven indicators of slowing down lately, part of the milk marketplace for moms and infants is shifting to the higher-end phase as folks’s residing requirements enhance.

In the meantime, the M&A technique has created Masan Group’s model and development over the previous decade. Particularly after the acquisition of VinCommerce, Masan himself can be wanting so as to add extra classes to his already huge assortment. Soy milk is taken into account a good selection for Masan to begin with a dairy phase that doesn’t have any manufacturers. At present, the proportion of Masan Shopper’s items in VinMart+ shops and VinMart supermarkets is comparatively giant. Masan’s fashionable retail synergies and homegrown merchandise are past doubt.

  Director of VDSC receives authorization from a mysterious group of shareholders to join the Board of Directors: Is Vinasoy in the sights of M&A?  - Photo 4.

QNS’s market capitalization is reaching greater than 16,500 billion dong

East Asia

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