The heat of PVMachino’s divestment deal

Company information
icon date22/07/2023

The heat of PVMachino’s divestment is attracting the attention of investors, let’s find out together!

The process of the divestment deal

In recent years, PVMachino has experienced many changes in the company’s shareholders as well as ups and downs in its own business.

The race for a huge land fund

The race for a huge land fund appeared when PVMachino’s share price dropped to VND 8,000 at the end of September 2020. In the trading session on November 5, 2020, PVMachino suddenly appeared a sudden matching transaction of 1.28 million dong and the stock price was 10,800 dong.

However, in the session until mid-March 2021, the share price has reached more than 30,000 VND. And since this milestone, PVMachino has entered a strong uptrend, improved markedly and created attraction for domestic and foreign investors.

The heat of PVMachino’s share sale may not only arise from divestment from shareholders but also from the “gold” land fund held by businesses. In which, mainly land plots with attractive locations.

Large shareholder in many businesses

Before the divestment, PVMachino was still a major shareholder in a number of businesses with commercial advantages and brought in profits and regular dividends of hundreds of billions a year:

FCC Vietnam Co., Ltd. with a capital of 10%,

Vietnam Nippon Seiki Co., Ltd. 10%

Hitachi Astemo Hanoi Co., Ltd. 8.45% (with a total book value of only VND 98 billion).

Most of the company’s joint venture partners are leading Japanese enterprises in the field of machinery manufacturing such as FCC, Asia Honda Motor, Nippon Seiki, Itochu Corporation…

Moreover, PVMachino is a manufacturer specializing in auto parts, motorcycles, specialized vehicles and other machines: BMW, Honda, Harley Davidson….

PVMachino’s profit after divestment

The divestment deal in PVMachino has attracted the attention of many investors because the company holds many valuable assets with potential advantages.

Large capital contribution in joint venture company

PVMachino owns a large capital contribution of 98 billion VND in 3 joint venture companies which are considered as “golden eggs” specializing in the production of machinery and automobiles…

Of the three PVMachino joint venture companies operating extremely efficiently, every year, they earn huge dividends:

In 2016, the company received VND 100 billion in dividends and profit from trading

In 2017, revenue of 84 billion VND

In 2018 it earned 80 billion VND

From 2019 until now, each year has earned an average of over 82 billion VND.

Besides, PVMachino is currently the owner and manager of many valuable real estates in prime locations such as: 8 Trang Thi – Hoan Kiem (HN) land lot 1,827.69m2, Dao Cam Moc street (Dong Anh, HN) land lot 23600 m2; along with an indefinite surplus of land at No. 5, cluster 4, Khuong Dinh ward (Thanh Xuan, Hanoi).

Owning a subsidiary with the highest volume of business

Moreover, Da Nang Petroleum Machinery and Equipment Joint Stock Company (Daesco) is a subsidiary of PVMachino and a huge dealer of Mitsubishi Motors in Vietnam.

In 2019, Daesco achieved peak revenue in the vehicle business with VND 806 billion, equivalent to 1,356 cars sold.

Currently, Daesco is still managing a number of land plots located in Da Nang city: number 53 Tran Phu with an area of 218.8m2; 51 Phan Dang Luu: 1,806.8 m2; 495 Nguyen Luong Bang: 3,241.6 m2; 10 Nguyen Phuc: 15,356 m2…

On the other hand, Daesco has also been leased land by the State with a term of 50 years to invest in the construction of Mitsubishi Daesco Hue – Southeast Thuy An new urban area (Thua Thien Hue).

How PVMachino avoids loss of state capital

After divestment PVMachino has always developed its strengths in many fields and industries of oil and gas, and at the same time is aiming to invest in large projects.

PVMachino will closely monitor capital divestments at its company to avoid any loss of state capital.

The stocks at PVM are forecasted to increase strongly. If investors are deciding to invest in the company, this is a smart and suitable choice.

Since the state divestment, the company has promoted improving governance, streamlining the apparatus, and reducing administrative costs.

PVMachino consolidated the company’s apparatus, and at the same time arranged human resources to help the company avoid loss of state capital.

At the Shareholders’ Council, Mr. Ho Cong Ky said that POW will conduct divestment at PVMachino in an open and transparent manner. At the same time, research and organize a roadshow to introduce PVMachino investment opportunities so that interested investors can easily access investment opportunities, thereby helping the company avoid capital loss.

PVMachino caused heat in the international market thanks to the divestment deal from the company. This will be a stepping stone to help the company increasingly improve its position in the international market.