Individual Assignment

S2023 - FIN202

Lecturer: Dinh Thi Phuong Mai

Name : Nguyen Thi Ngoc Bich

Student ID: SS171245
Class : MKT1709
I. Introduction
1. Overview of Vinhomes JSC
Vinhomes JSC is the No. 1 real estate company in Vietnam that develops and manages
residential, office, and commercial buildings It offers houses, apartments, villas, as well as
offices for sale, lease, and rent. It also creates modern shopping malls and eco-luxury urban
projects. Vinhomes JSC owns 22% residential market share in Vietnam, leaving the follower
with 4% behind. Vinhomes is a member of Vingroup, a leading conglomerate in Vietnam.
2. Vinhomes JSC’s competitive position in the market
Vinhomes JSC faces competition from other real estate development companies in Vietnam,
such as FLC Group Joint Stock Co, The 36 Corp, and Cuu Long Petro Urban Development
and Investment Corporation. Vinhomes JSC has a competitive advantage in terms of its scale,
execution speed, service quality, and brand recognition. Vinhomes JSC has a market
capitalization of 7.75 billion USD as of March 3rd, 2023, while its competitors have much
lower market values. Vinhomes JSC also has a higher revenue growth rate than its peers.

II. Reasons for Investment

1. Market leader:
● Vinhomes is the No.1 real estate development and management company in Vietnam,
recognized for its superior scale, execution speed, and service quality.
● Vinhomes has a large and diversified portfolio of projects across various segments
and locations, catering to different customer needs and preferences.
● Vinhomes has a competitive advantage in terms of land bank, financial resources,
operational efficiency, and innovation capabilities, supported by its parent company
Vingroup
- Vinhomes JSC accounted for 25% of total apartment sales in Hanoi and Ho Chi
Minh City in 2021, far ahead of its competitors such as FLC Group Joint Stock
Co (7%), The 36 Corp (5%), and Cuu Long Petro Urban Development Joint
Stock Company (4%)
- Vinhomes JSC has a total land bank of over 16,000 hectares across Vietnam
- Vinhomes JSC has been expanding its presence across Vietnam with more than
40 projects in various provinces and cities such as Hanoi, Ho Chi Minh City,
Hai Phong, Da Nang, Nha Trang, and Can Tho
● Vinhomes JSC plans to enter new markets such as hospitality, education, healthcare,
and smart city solutions. For example, it recently launched Vinmec International
Hospital in Hanoi, which is the first hospital in Vietnam to be accredited by Joint
Commission International (JCI), the global leader in healthcare quality standards.
=> These initiatives show that Vinhomes JSC has a dominant position and a strong growth
potential that can support its future development and growth, moreover, diversify its revenue
streams, and reduce risks which will greatly benefit its investor

2. Strong financial performance:

Vinhomes JSC releases its financial statements regularly, which can provide insight into the
company’s financial performance.
● Revenue growth: Vinhomes JSC's revenue increased by 54.1% in the first nine
months of 2021 compared to the same period last year, and by 60.3% in the third
quarter of 2021 year-on-year. This indicates that the company's diversified real estate
portfolio and strong market position are driving its revenue growth.
● Profitability: Vinhomes JSC's net profit increased by 35.5% in the first nine months of
2021 compared to the same period last year, and by 37.4% in the third quarter of 2021
year-on-year. This suggests that the company's revenue growth is translating into
higher profits, and that Vinhomes JSC is managing its costs effectively.
● Return on equity (ROE): Vinhomes JSC's ROE for the first nine months of 2021 was
22.6%, and for the third quarter of 2021 it was 21.2%. This indicates that Vinhomes
JSC is generating strong returns for its shareholders, and that its management is
effectively deploying capital to drive growth.
● Strong cash position: Vinhomes JSC's cash balance as of September 30, 2021 was
VND 44.3 trillion (approximately USD 1.9 billion). This strong cash position gives
Vinhomes JSC flexibility to pursue growth opportunities, invest in new projects, or
return capital to shareholders.
● Debt management: Vinhomes JSC's debt-to-equity ratio was 0.7 as of September 30,
2021, indicating that the company has a moderate level of debt compared to its equity.
This suggests that Vinhomes JSC is managing its debt effectively and is not overly
reliant on debt to fund its operations.

=>In summary, the figures presented above demonstrate that Vinhomes JSC has strong financial
performance, with strong revenue growth, profitability, return on equity, cash position, and effective
debt management. This should provide confidence to investors looking to invest in the company.

3. Vinhomes JSC (VHM)-An undervalued stock

● It is undervalued with an excellent balance sheet. Its price-to-earnings ratio is 6.481,
which is lower than the industry average of 9.8.
● Vinhomes JSC stock-VHM has a positive price trend, with a 1.06% increase on
Friday at 42850 Vietnamese Dong, and a 8.7% increase over the past month.
● VHM dividends are paid annually. The last dividend per share was 2000.00 VND. As
of today, Dividend Yield (TTM)% is 4.76%, which is higher than the average of 2.4%
for the real estate sector in Vietnam.
● It has a market capitalization of 186.58 trillion VND as of March 12, 20231. It is one
of the largest companies listed on the Ho Chi Minh Stock Exchange (HOSE)
=>Overall, with its undervalued stock, excellent balance sheet, positive price trend, and
attractive dividend yield, investing in Vinhomes JSC (VHM) presents a promising
opportunity for investors looking to maximize their returns

4. Diversified product offerings:

 Vinhomes develops and designs residential and commercial properties including houses,
apartments, villas, as well as offices for sale, lease, and rent. It offers different product lines
that cater to different segments of the market such as:
● Grand Park-This product line is designed to meet the housing needs of the growing
middle class in Vietnam
● Ocean Park-This product line targets high-end buyers who value luxury living and
eco-friendliness.
● Smart City-This product line is designed to appeal to tech-savvy buyers who value
convenience and connectivity.
It also operates modern shopping malls such as Landmark81 Mall (the tallest building in
Southeast Asia) and Times City Mall (the largest underground mall in Vietnam). These
commercial properties generate steady rental income and provide a diversified revenue
stream for the company.
=>Overall, Vinhomes JSC's diversified real estate portfolio helps mitigate risk by providing
exposure to multiple segments of the market, increased market share and create potential for
higher returns as well as long-term growth for investors

III. Reference
https://simplywall.st/stocks/vn/real-estate/hose-vhm/vinhomes-shares
Lịch sự kiện doanh nghiệp niêm yết, công ty đại chúng | VietstockFinance
Báo cáo tài chính CÔNG TY CỔ PHẦN VINHOMES – HOSE:VHM – TradingView
Financial Statements & Presentations | Vinhomes
VHM.VN | Vinhomes JSC Annual Income Statement - WSJ
Về Vinhomes | Vinhomes