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Banking & Finance

Viettel Post lists on UPCoM

Released at: 15:51, 23/11/2018

Viettel Post lists on UPCoM

Photo: Viettel Group

Shares hit ceiling on first day of trade, November 23.

by Ngoc Lan

Viettel Post officially listed on UPCoM on November 23 with the stock code VTP and an offering price of VND68,000 ($2.9) per share.

With approximately 41.4 million shares, Viettel Post is therefore valued at nearly VND3 trillion ($128.7 million).

On its first trading day its shares hit their ceiling price of VND95,200 ($4), up nearly 40 per cent against the listed price with over 1 million shares traded.

The express delivery company has the second-largest market share in the country. High expectations among investors in VTP are based on three factors: the number of issued shares, its growth rate, and its dividend payout ratio.

Viettel Post’s total consolidated revenue in 2017 rose sharply to more than VND4 trillion ($171.6 million), up 37.64 per cent against 2016. Pre-tax profit was VND213.5 billion ($9.1 million). In the first half of this year, consolidated revenue was more than VND1.9 trillion ($81.5 million) and pre-tax profit VND147 billion ($6.3 million), up 1.06 per cent and 61.5 per cent year-on-year.

With a cash dividend payment ratio of at least 15 per cent per annum, or double the average deposit rate at banks, and bonus shares, investors will receive a plus value of 20 to 30 per cent.

Viettel Post can maintain this high dividend ratio after adopting a good business development strategy that caught e-commerce trends in traditional postal services during its nine years of transforming into a joint stock company.

It will soon become a logistics supply chain service provider that applies technology in more than 90 per cent of its operations.

Mr. Tran Trung Hung, Member of the Board of Directors and General Director of Viettel Post, said that after listing on the stock market it will make thorough changes to all of its activities, not only in Vietnam but also in international markets. “The focus will shift from being a company cooperating with foreign counterparts to investing in these counterparts, from being an express delivery company to a logistics company, and from being a traditional postal enterprise to a technology enterprise,” he added. “The strategic objective is ‘to become the number one logistics company for sales companies in Vietnam’, aiming at $500 million in revenue with a 30-35 per cent market share by 2020.”

After more than 20 years in business, Viettel Post has risen to second place in Vietnam’s postal market and aims to become the country’s leading logistics company. It is now focusing on three main business fields: domestic and international express delivery, logistics services, and trade and services.

The strongest period of development for Viettel Post was 2016, when it opened 315 new post offices; equal to the number it opened in the previous 18 years.

Viettel Post has continued to expand its network and invest in infrastructure, with 1,300 post offices covering districts, islands, and communes, 17,000 employees, and a fleet of more than 500 vehicles delivering to all regions. From 2013 to 2018, its number of post offices increased 67.59 per cent.

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