According to the financial report of Vietnam Joint Stock Commercial Bank for Industry and Trade Securities (VietinBank Securities, code CTS), the profit from selling financial assets recorded through profit/loss (FVTPL) in the second quarter of 2023 skyrocketed from VND 15.8 billion in the same period last year, to more than VND 152 billion thanks to selling unlisted stocks.
Specifically, CTS sold more than 4.7 million unlisted shares with a total sale value of VND141 billion (equivalent to VND30,000/share). The original purchase price was more than VND24 billion (equivalent to VND5,100/share). CTS earned a profit of VND117 billion.
The report also pointed out that the sharp decline in the value of CTS's unlisted stock investment came from shares of Truong Hai Auto Corporation (Thaco). This means that CTS has sold a part of its Thaco shares.
With a price of VND30,000/share and the number of outstanding shares of Thaco being nearly 3.05 billion shares, Thaco is valued at VND91,500 billion (equivalent to about USD3.8 billion).
Thus, compared to the price Thaco issued privately to strategic shareholder Jardine Cycle & Carriage Limited (JC&C) in 2019, this number is much lower.
According to the plan to sell to JC&C, Thaco issued more than 30.3 million shares (equivalent to 1.82% of outstanding shares) at a price of up to 128,500 VND/share. At that time, Thaco was valued at up to 9.24 billion USD.
After nearly 4 years, Thaco's valuation has dropped dramatically.
How does Thaco do business?
Truong Hai Group Corporation (Truong Hai Group), formerly Truong Hai Auto Corporation (Thaco), was established on April 29, 1997, in Dong Nai. The founder is Mr. Tran Ba Duong, who is currently the Chairman of the Board of Directors.
Currently, Thaco is a multi-industry industrial corporation including: Thaco Auto (automobiles), Thaco Agri (agriculture and forestry); Thaco Industries (mechanics and supporting industries), Thadico (construction investment), Thilogi (Logistics) and Thiso (trade and services).
At the end of June 2023, according to Reuters, Thaco may sell 20% of Thaco Auto's shares. Thaco Auto has a valuation of about 5 billion USD. 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 and its consulting unit, Ho Chi Minh City Securities Corporation (HSC), are working to sell 10% of Thaco Auto's shares. This new share issuance is expected to be completed this year.
At the same time, the number of ESOP shareholders of Thaco in 2018 was converted, so that Thaco Auto becomes a public joint stock company. This company plans to list on the stock market within the next 3 years.
Mr. Minh said that the capital mobilized from the new share issuance will be used to serve production and business activities and invest in expanding the retail system and developing new products of Thaco Auto in the coming time.
Thaco Auto is a member of Thaco Group and also the main unit. Thaco Auto specializes in manufacturing, assembling, distributing and retailing vehicles under the brands KIA, Mazda, Peugeot, BMW... 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 truck factory) located in Chu Lai Industrial Park (Quang Nam).
Truong Hai is known as a private enterprise of Mr. Tran Ba Duong and Ms. Vien Dieu Hoa's family. This enterprise is no longer a public company and does not have to disclose information.
Over the past decade, Thaco has expanded into many fields, including agriculture, real estate, retail, logistics, etc.
In 2023, billionaire Tran Ba Duong's group continues to set big ambitions. In the real estate sector, Thadico - Dai Quang Minh will accelerate the deployment of available land funds, planning to start dozens of commercial projects with a total investment of thousands of billions of VND in 2023.
Previously, Thaco Group had delegated to Dai Quang Minh Real Estate Investment Joint Stock Company (Thadico) the management and responsibility for investment and development activities of industrial park, urban area, real estate, transportation and technical infrastructure projects.
Thadico will start 24 projects and complete the handover of 3 projects in 2023. The total disbursed investment value in the year is 6,731 billion VND.
In 2022, Thaco recorded a profit of VND7,400 billion but its debt was high, more than VND104,000 billion (USD4.4 billion). However, the debt/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 VND48,445 billion. Thaco recorded outstanding bonds on the company's equity of 0.17 times. This means Thaco has about VND8,200 billion in outstanding bonds.
According to the list of world USD billionaires in 2023 published by Forbes Magazine (USA) in early April, Vietnam has 6 representatives. Vietnamese billionaires have assets worth 12.6 billion USD, "evaporating" 8.6 billion USD compared to 2022. However, the assets of Thaco Chairman Tran Ba Duong's family remained unchanged, at 1.5 billion USD.
Mr. Tran Ba Duong is famous for the Sala real estate project in the hot land of Thu Thiem (HCMC). Dai Quang Minh Enterprise once recorded large revenue from this project.
He also had great success with Thaco and made a breakthrough thanks to his investment in Thu Thiem. However, this billionaire had a difficult time rescuing HAGL Agrico.
HAGL Agrico (HNG) is an agricultural enterprise with a large land area, but modest revenue and profit. High prices of fertilizers and agricultural materials and soaring transportation costs over the past year have made it difficult for agricultural enterprises like HNG.
Mr. Tran Ba Duong's Thaco poured billions of USD into HAGL Agrico, but the recovery of this enterprise is quite slow.
At the 2021 extraordinary shareholders' meeting, Mr. Tran Ba Duong said that he joined HAGL Agrico only hoping to help this enterprise escape danger and wanted the country to have a large-scale agricultural enterprise following the industrial production model.
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