On April 21, 2025, SSI Research released an updated report detailing changes to the VNDiamond and VNFIN Lead index portfolios for the second quarter of 2025. This report highlighted significant developments in the stock market, particularly the inclusion of CTD stock in the VNDiamond index for the first time, while VIB has been placed on a waiting list for removal. Furthermore, MWG continues to be maintained in the index, whereas VRE was officially removed.
According to the operational rules of the VNDiamond index version 3.0, both CTD and VIB are subject to a maximum weight limit of 50%. This means that the weight of these stocks will be adjusted gradually over two consecutive restructuring periods instead of being implemented immediately. Notably, MWG's coefficient was increased from 50% to 100%, allowing for a broader allocation of this stock in the portfolios of funds tracking the index.
The new VNDiamond index portfolio will encompass 19 stocks, including 9 from the banking sector and 10 from various other sectors. The banking stocks will continue to face a maximum weight cap of 40% of the total portfolio, ensuring diversification and minimizing sector concentration risk.
Currently, five ETF funds utilize the VNDiamond index as a benchmark: DCVFMVN Diamond ETF, MAFM VNDiamond ETF, BVFVN Diamond ETF, KIM Growth Diamond ETF, and ABF VNDiamond ETF. As of April 21, 2025, the total net asset value (AUM) of these funds is estimated at 10.3 trillion VND, with DCVFMVN Diamond ETF representing a significant portion at approximately 9.8 trillion VND. However, since the start of the year, this fund has experienced a notable decline of 22.4% in total assets and 14.3% in net asset value (NAV), with net withdrawals reaching 1.06 trillion VND.
Based on estimates from SSI Research, during this restructuring period, DCVFMVN Diamond ETF is expected to purchase around 1.9 million shares of MWG and 1.1 million shares of CTD, while selling approximately 10 million shares of VIB and 4.7 million shares of VRE. Other stocks forecasted for significant purchases include FPT (2.2 million shares), TCB (2 million shares), and MBB (1.3 million shares). Conversely, ACB and HDB are anticipated to be sold off heavily, with expected volumes of around 6.9 million and 4.3 million shares, respectively.
In contrast, the VNFIN Lead index, according to SSI Research, will see no changes in its component portfolio during this restructuring period. The index basket remains stable at 23 stocks, primarily in the financial and banking sector. As of April 20, 2025, the SSIAM VNFIN Lead ETF, the only fund tracking this index, has a total asset value of approximately 423 billion VND. Since the beginning of the year, this fund has recorded a 12% decrease in total assets and a slight 0.6% decline in NAV, with net capital withdrawals around 58 billion VND.
Meanwhile, on the same day, the Annual General Meeting of Shareholders (AGM) for Hodeco, a prominent real estate development company, failed to meet the necessary conditions to proceed. The Chairman of the Board, Doan Huu Thuan, expressed that reaching out to shareholders to invite them to the meeting was particularly challenging, as many used nominee accounts and preferred to keep their identities undisclosed.
By 3:00 PM, it became evident that the meeting would not take place due to a lack of quorum, with nearly 8% still missing. Hodeco boasts a large shareholder base of 18,645 individuals, and the company plans to reorganize the AGM for May 26, 2025. The General Director, Le Viet Lien, conveyed disappointment among the leadership and shareholders regarding the unsuccessful meeting.
The decline in Hodeco shares, attributed to global events and policy changes, resulted in four consecutive days of hitting the floor, which adversely affected shareholder sentiment. Some major shareholders did not attend the meeting for reasons that remain unclear, contributing to the low turnout.
Despite these challenges, Le Viet Lien noted that the real estate market is gradually warming up, particularly in major cities like Hanoi and Ho Chi Minh City, as well as in Ba Ria - Vung Tau. Legislative changes have positively influenced market recovery; however, the real estate market in Ba Ria - Vung Tau has been recovering at a sluggish pace throughout 2024.
Global events, including the ongoing conflicts in Ukraine and the Middle East, have further complicated the market landscape. Hodeco did not meet its business plan for 2024, but management has approved a promising plan for 2025. The company aims for a record profit of 424 billion VND, with projected revenues of 1,459 billion VND, which are 1.7 times and 6.3 times higher than the results achieved in 2024, respectively. The total investment value is anticipated to exceed 2,250 billion VND, and the expected dividend is set at 15%, up from 12% in 2024.
Revenue and profit in 2025 will primarily stem from the sale of shares in Dai Duong Vung Tau Entertainment Construction Investment JSC, where Hodeco holds 47.27% of the capital, as well as the sales of the Thong Nhat Apartment project, Ngoc Tuoc project, and The Light City.
In terms of financing, Hodeco plans to issue 500 billion VND in convertible bonds to existing shareholders and another 500 billion VND in private placement bonds. The convertible bonds will be structured to allow for conversion into common shares of HDC in two phases, with 40% convertible one year after issuance and the remaining balance at the maturity date. Additionally, the company intends to issue up to 500 billion VND in private placement bonds during the 2025-2026 period.
Looking ahead, Hodeco aims to complete legal procedures for various projects throughout 2025, including The Light City, Doi Ngoc Tuoc 2 Villa Area, Dai Duong Tourist Area, Residential Area No. 2, Ecotown Phu My, and Fusion Suites Vung Tau. The company remains focused on overcoming the challenges posed by land use regulations and market conditions to realize its ambitious plans.
