In the trading session on October 21, the Vietnamese stock market continued to be quiet with low liquidity, the VN-Index and most stocks decreased in price in the context of investors lacking supportive information.

However, contrary to the general decline across the board and the decline of most key stocks, billionaire Pham Nhat Vuong's "Vin family" stocks continued to increase quite strongly, in which real estate giant Vinhomes (VHM) broke out to its highest level in the past year ahead of a historic deal.

Vinhomes shares increased by VND2,550 to VND47,800/share, compared to VND34,000/share in early August. This is the highest price of VHM shares since early September 2023.

Vinhomes stock transactions were also impressive. In total, more than 21 million units were transferred in the session on October 21, worth nearly VND1,000 billion. Of which, foreign investors bought more than 4.3 million VHM shares and sold nearly 2.1 million VHM shares.

Vingroup (VIC) shares also increased quite well, adding 450 VND, to 42,250 VND/share. Meanwhile, Vincom Retail (VRE) increased 350 VND, to 19,100 VND/share.

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Billionaire Pham Nhat Vuong's Vingroup ecosystem is in need of large capital to focus on investing in VinFast. Photo: DK

The group of "Vin family" stocks increased sharply in the context that Vinhomes of billionaire Pham Nhat Vuong will buy up to 370 million treasury shares by order matching and/or negotiation from October 23 to November 21.

According to Vinhomes, the repurchase of VHM shares is to ensure the interests of the company and shareholders because the price of VHM is lower than the real value of the company. The money used for the repurchase is from undistributed after-tax profits.

This is considered the largest treasury stock purchase deal in the history of the Vietnamese stock market. Information about the deal was mentioned in early August and is considered a factor that helped VHM's price increase by nearly 40% during this period.

Vinhomes shares increased in price amid the real estate market heating up again with prices of apartments, townhouses, shophouses, villas, etc. in some projects reported to have increased sharply. Real estate auction prices in many districts in Hanoi also escalated.

Vinhomes, together with VEF - a subsidiary of Vingroup - launched the Vinhomes Global Gate project (Vinhomes Co Loa) with a total investment of VND35,000 billion. VEF shares have also increased sharply recently and are currently priced at VND217,900/share.

Vinhomes' decision to spend a huge amount of money, possibly up to 17 trillion VND, to buy back 370 million VHM shares is considered a boost for billionaire Vuong's stock. So what is the target for VHM's price increase?

According to fundamental analysis, VHM stock is quite attractive with a high book value of over VND44,000/share, and impressive basic earnings per share according to the huge annual profits of this code. Meanwhile, the market price/earnings per share (P/E) ratio is hovering around 9 times, very nice for a large enterprise like Vinhomes.

Vinhomes' assertion that VHM shares are lower than their real value is understandable. However, the valuation of a stock or a business varies from time to time. Billionaire Vuong's business ecosystem is in need of capital to focus on developing VinFast, so mortgaging assets is something to consider. Vinhomes shares cannot be as low as in August-September, but they may not be too high. In addition, there is also foreign capital flowing in and out of businesses in the Vin ecosystem.

The real estate market outlook when the new Land Law, Housing Law, Real Estate Business Law... have just come into effect, along with a new price level, costs for projects may increase... will also affect real estate stock prices.

In the trading session on October 21, in the group of 30 pillar stocks on the stock market, 3 codes increased in price, 2 codes remained unchanged, and the rest decreased. In addition to the 3 "Vin family" codes increasing in price, VPBank (VPB) and Mobile World (MWG) also increased slightly by 100 VND, to 20,650 VND and 65,800 VND/share, respectively.

The market was generally gloomy. The VN-Index fell 5.69 points (-0.44%) to 1,279.77 points. The HXN-Index fell 0.78%, while the Upcom-Index fell 0.6%. The total transaction value on all three exchanges reached VND15.5 trillion, including more than VND14.3 trillion on the HoSE.

After 1 year of planting the flag on American soil, how much assets does billionaire Pham Nhat Vuong own? The ambition of "planting the flag on American soil" has come true after billionaire Pham Nhat Vuong listed VinFast shares on Nasdaq and started construction of an electric car factory in the US. How much assets does this businessman have now?