Vinamilk's USD 7.9 billion value, the highest since 2007

Giant Vietnamese dairy firm Vinamilk (VNM)’s market capitalization is now nearly USD 8 billion, allowing it to remain the market leader in terms of capital.

With shares ending at VND 147,000 each on July 15, the firm is valued at about USD 7.9 billion in the market. VNM shares became one of the best-sellers in market after the Government announced a plan to divest all state capital from the firm in 2015.

The current price of VNM has reached its highest level since late 2007, marking a more than 57 percent increase year-on-year and nearly 26 fold increase compared with the first day of listing on January 19, 2006.

In the local market, more than 1.2 million shares of VNM were worth VND 176.5 trillion (USD 7.9 billion). Vietcombank, in second place, was worth VND 143 trillion and Vietnam Gas Corporation (GAS) was worth VND 121 trillion.

VNM’s shareholders benefited from the gains made by the firm, getting a 60 percent dividend, or VND 6.4 trillion, in 2016.

VNM was a money-maker for a long time for the State Capital and Investment Corporation (SCIC), which held more than 45 percent of state capital in the firm.

SCIC’s investment gained more than USD 1 billion after the Government announced a divestment plan. If it divests now, SCIC will earn at least USD 3.56 billion. If it continues to hold shares, SCIC will get VND 3.2 trillion (USD 145 million) as dividend this year.

In 2015, SCIC received more than VND 2.7 trillion as cash dividend from the firm. SCIC leaders said they had submitted the divestment plan to the Government, which would decide the time and method of divestment that best benefits the State’s budget.

Singapore’s F&N Dairy Investments Pte Ltd was also one of the major gainers from their investment in Vinamilk. Owning more than 11 percent equity, valued at VND 19.4 trillion, the fund expects to receive nearly VND 800 billion in dividend.

Arisaig Asia Consumer Fund Limited, which has a stake worth VND 2.9 trillion, will also gain VND 120 billion in dividend.

With nearly 3.4 million shares, Vinamilk CEO Mai Kieu Lien got VND 500 billion in stock value and received about VND 20 billion as this year’s dividend.

Recently, the company decided to sell 9.44 million preferred shares to officers and employees at just VND 356 billion, while the market valuation is pegged at more than VND 1.3 trillion.

In 2016, Vinamilk plans to earn VND 44.5 trillion in revenue and VND 8.3 trillion in after-tax profit, an increase of 11 percent and 6 percent, respectively, over 2015. Vinamilk is expanding its investments in the United States, Europe and Australia.