Insurance & Central Asia-focused Analyst, KT Capital Group

Alec Tseung

Insurance & Central Asia-focused Analyst

KT Capital Group

Principal investments and advisory firm that focuses on connecting the CIS countries with East Asia.

Principal investments and advisory firm

Equity Capital Markets

<ul>
<li>Vietnam's tech giant, VNG, filed for US listing last week (valuation TBC).</li>
<li>Given the country's current foreign ownership restriction, the listing will be done via an offshore entity that effectively controls the company through contractual agreements.</li>
<li>Investors should be aware of the risk, esp. after previous market concerns surrounding Chinese tech companies' VIE structure.</li>
</ul>


Vietnam's tech giant, VNG, filed for US listing last week (valuation TBC).
Given the country's current foreign ownership restriction, the listing will be done via an offshore entity that effectively controls the company through contractual agreements.
Investors should be aware of the risk, esp. after previous market concerns surrounding Chinese tech companies' VIE structure.


VNG: Potential US Listing with the First Vietnamese “VIE” Structure

Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>The SET Index is expected to move sideways up, with the resistance at 1,636/1,649 points and the support at 1,612 points (200-day EMA)/1,607 points (50-day EMA).</li><li>We recommend trading buy on HMPRO, SPA and CRC.</li><li>Technically, the index is on an uptrend in the form of a rounding bottom (U-shape), moving toward testing the target resistance of 1,649 points.</li></ul>

The SET Index is expected to move sideways up, with the resistance at 1,636/1,649 points and the support at 1,612 points (200-day EMA)/1,607 points (50-day EMA).We recommend trading buy on HMPRO, SPA and CRC.Technically, the index is on an uptrend in the form of a rounding bottom (U-shape), moving toward testing the target resistance of 1,649 points.

Private Capital Markets

For an investment in MoMo, which is a leading e-wallet in Vietnam, our analysis shows that the most sensitive factor that would impact a potential investor's return is the company's take rate.Hence, even if the digital payments and e-wallets sector in Vietnam could present significant growth, the return from investing in MoMo could still be unattractive if its take rate drops in the future, given the sector's intensifying competition.The key to defending its future take rate is diversifying away from e-wallets and payments to become a financial facilitator with a complete ecosystem in the coming 3 – 5 years, like Ant Group in China. This is also the strategy Grab Financial Group is going after.

For an investment in MoMo, which is a leading e-wallet in Vietnam, our analysis shows that the most sensitive factor that would impact a potential investor's return is the company's take rate.Hence, even if the digital payments and e-wallets sector in Vietnam could present significant growth, the return from investing in MoMo could still be unattractive if its take rate drops in the future, given the sector's intensifying competition.The key to defending its future take rate is diversifying away from e-wallets and payments to become a financial facilitator with a complete ecosystem in the coming 3 – 5 years, like Ant Group in China. This is also the strategy Grab Financial Group is going after.  

Vietnam's MoMo: A Venture Capital Investment With Private Equity Return?

<ul><li>CPW's 2020 results missed our expectation on a weak top line and GPM thanks to the adverse impact of the pandemic.</li><li>We revise down the 2021-2022E earnings to reflect the slow momentum of the economic recovery, despite the strong product lineup.</li><li>The current share price has limited upside to our new TP of Bt2.37, pegged with 2021E PER of 19x, leading us to downgrade our rating to Hold.</li></ul>

CPW's 2020 results missed our expectation on a weak top line and GPM thanks to the adverse impact of the pandemic.We revise down the 2021-2022E earnings to reflect the slow momentum of the economic recovery, despite the strong product lineup.The current share price has limited upside to our new TP of Bt2.37, pegged with 2021E PER of 19x, leading us to downgrade our rating to Hold.

<ul><li>INTUCH's 2020 earnings were in line with the expectations.</li><li>INTUCH reported a net profit of Bt11.0bn in 2020, in line with our forecast and the street.</li><li>INTUCH approved the payment of a DPS of Bt1.35 for the 2H2O operation, representing a yield of 2% for the period.</li></ul>

INTUCH's 2020 earnings were in line with the expectations.INTUCH reported a net profit of Bt11.0bn in 2020, in line with our forecast and the street.INTUCH approved the payment of a DPS of Bt1.35 for the 2H2O operation, representing a yield of 2% for the period.

United States

VNG Limited operates a digital infrastructure and technology platform. The Company offers products mobile games, communications and media, fintech, and cloud-based platforms. VNG serves customers worldwide.

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VNG (VNG US)

VNG: Potential US Listing with the First Vietnamese “VIE” Structure

VNG filed for a US IPO last week. Besides focusing on its financials, investors should also be aware of the risk arising from the listing structure...

Alec Tseung

Market Outlook

The SET Index is expected to move sideways up, with the resistance at 1,636/1,649 points and the support at 1,612 points (200-day EMA)/1,607...

Krungthai XSpring

Vietnam's MoMo: A Venture Capital Investment With Private Equity Return?

Take rate is the most critical factor that determines the return MoMo could bring to investors. The key to defending its take rate amid intense...

Alec Tseung

2020 Earnings Below Forecast

CPW's 2020 results missed our expectation on a weak top line and GPM thanks to the adverse impact of the pandemic. We revise down the 2021-2022E...

Krungthai XSpring

Play On Yield

INTUCH's 2020 earnings were in line with the expectations. INTUCH reported a net profit of Bt11.0bn in 2020, in line with our forecast and the...

Krungthai XSpring

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