Owning shares of PV Building: Opportunity for investors

PetroVietnam Building and Trading Joint Stock Company (PV Building) will officially launch its IPO on the Hanoi Stock Exchange on July 12. Accordingly, the number of shares auctioned to the public is 7,977,919 shares (equivalent to 45.53% of charter capital), with a starting price of VND12,200/share.

Talk show introducing investment cooperation opportunities of PV Building in Hanoi on July 1, 2016

With 96.53% of PV Building’s charter capital held by Binh Son Refining and Petrochemical Company Limited (BSR), the amount of shares sold this time helps BSR divest and reduce the percentage of shares held at PV Building to 51%.

According to Mr. Dao Hong Duong – Head of Investment Consulting Department, Petroleum Securities Company (PSI): “We are quite optimistic about PV Building’s shares, because this is a business with high profit margins and growth in recent years. From 2013-2015, the company’s growth rate reached 200 – 335.6%, in addition, the company has undergone 2 restructurings, so the management apparatus has been streamlined, has a clear development strategy, focusing on 3 areas of strength. In particular, the company’s service and logistics sectors always bring high profits, but require little capital while the asset structure is healthy, with very little debt and almost no debt. At the same time, this is also an enterprise that provides full logistics services for Dung Quat Oil Refinery and other units”.

PV Building is an enterprise specializing in building houses, trading PP plastic beads and other types of plastic beads; providing house management and rental services, manufacturing and trading packaging products; operating restaurants and mobile catering services; transporting passengers; landscape care and maintenance services…

According to Mr. Duong, PV Building has a great advantage, which is a stable source of input from partner BSR and benefits from the relationship with BSR. The increase in capacity of Dung Quat Oil Refinery is also a great opportunity for the company to expand its scale, increase revenue and profit in all areas that are being and will be deployed. In particular, the plastic resin business will develop strongly after 2021, when the Dung Quat Refinery Expansion Project is completed and put into operation. Therefore, this will be a great opportunity for investors.

Regarding the divestment issue at PV Building, Mr. Tran Ngoc Nguyen – General Director of BSR – shared: The divestment at PV Building aims to implement BSR’s restructuring plan according to Decision No. 2081/QD-DKVN dated September 3, 2015 of the Board of Members of the Vietnam Oil and Gas Group. PV Building currently has a charter capital of over VND 175.22 billion, the number of shares offered by BSR accounts for 45.43% of the company’s charter capital. Thus, if the IPO is successful on July 12, after the sale, BSR will still hold 51% of the charter capital. The sale of a part of the capital to the outside is to help PV Building become a public company, more transparent in production and business activities. In addition, BSR’s divestment is also to prepare for BSR’s IPO scheduled for the end of this year.

“The divestment at PV Building will not affect PV Building’s operating efficiency, but on the contrary, the efficiency will be higher in the coming years, especially when the Dung Quat Oil Refinery Upgrade and Expansion Project is in the process of implementation because PV Building is the main partner providing many services to BSR” – Mr. Nguyen said.

PV Building is currently holding a large market share in supplying cement bags, agricultural bags and supplying 100% of 3-layer PE bags of Dung Quat Oil Refinery, in the future it will increase its capacity to supply Nghi Son Oil Refinery. The company is also the distributor of most of Dung Quat Oil Refinery’s PP plastic granules with an output of 12,000 – 14,000 tons/year. In 2015, PV Building’s net profit reached 10.8 billion VND, expected to increase by an average of 30% per year.

Source: baocongthuong.com.vn