Hanoi Toserco (TSJ): Notes on First Glimpse

This is my recent reading regard Vietnam equitization wave prompting much during this year 2017 and for the next couple of years I guess, which its title is Behind the new equitization wave in Vietnam.

According to the author’s article which I did strongly agree on State-Owned Enterprises (SOEs) privatization/equitization and why they must be a bold move and action for Vietnam economy:

(1) Promote and nurture the private sector to enhance the long-term economy strengths.

(2) Attract foreign investors to come into Vietnam and do business there, which is a good signal for Vietnamese economy have been integrating more deeply and broader into the regional and global economies.

(3) Enlarge the market size and improve liquidity on Vietnam stock market, consequently, it could approach and being a part of MSCI index.

All mentioned benefits above help the Vietnamese financial market in the long term and strengthen its economic prospects in the long run.

Now speaking of one of among the current wave, I came across with Hanoi Toserco – TSJ.

As it mentions in its prospectus the main field of operation is tourism and traveling operator, I consider the depth of its assets belonging the category of commercial properties investment.

Now look at its current real estate holdings, which are almost located in the prime location in Hanoi main districts:

Các mảnh đất 1Các mảnh đất 2

Some in prime location and operated very smoothly are:

Sử dụng tài sản thực tế hiện nay

At present and in the next years thanks to the booming of Hanoi economy (it is the capital of Vietnam and among Ho Chi Minh City, two both will maintain the key prime for doing business in Vietnam), total holding is up to approximate ~5,000 sqm.

For the market value of prime location, 300 million dong up to 600 million, even 1 billion dong per sqm is not above the sky price for a successful deal in Vietnam, especially in Hanoi and HCMC.

Convert it to the total holding’s value, it could be read 1,5k to 4,5k billion Vietnam dong. For average, 3k billion dong aka 3 trillion dong.

Now then look at its balance sheet, which is very healthy and expenses at almost no debt.

The main business is very mediocre. Comparing to the prime locations, if all holdings belong to the professional commercial real estate operator in charge, I guess it must be better alot:

Kế hoạch 2017-18Khai thác tài sản mediocre 1Khai thác tài sản mediocre 2

I guess I know it’s too little late. When you invest in this kind of business, pay attention much into the clash of shareholder groups, one representing for the government’s capital, other come from private sector fighting to own much more its holding and control the fate of the company:

Ban lãnh đạoCổ đông lớn

You can also learn about the shareholders’ background and profile here:

  1. http://s.cafef.vn/ceo/CEO_50957/nguyen-thi-nga.chn?cs=TSJ
  2. https://vi.wikipedia.org/wiki/Nguy%E1%BB%85n_Th%E1%BB%8B_Nga_(doanh_nh%C3%A2n)
  3. http://cafebiz.vn/am-tham-nhung-tao-bao-nu-tuong-brg-group-nguyen-thi-nga-dang-chiem-linh-thi-truong-khach-san-viet-nam-nhu-the-nao-20170512123408073.chn
  4. http://s.cafef.vn/otc/BRGGROUP-ctcp-tap-doan-brg.chn
  5. http://cafef.vn/intimex-du-kien-chi-toi-da-200-ty-dong-mua-6-trieu-co-phan-hanoi-toserco-20171202233624439.chn
  6. http://cafef.vn/hanoi-toserco.html.chn

Regard the price of prime commercial real estate in Hanoi:

  1. http://vietnamnet.vn/vn/kinh-doanh/dau-tu/ha-noi-dau-gia-ngan-m2-dat-vang-thuc-hu-dat-pho-co-1-ty-m2-408405.html
  2. http://cafef.vn/ha-noi-ban-dat-vang-cua-8-so-nganh-di-doi-the-nao-20171024135416238.chn

Since TSJ’s price is pretty high and now its shareholders are fighting against to gain more share control, its price maybe hard to down again. Margin of safety teaches me to await for chance come back at another suitable time.

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