Giant insurer goes listing

The firm’s targeting a market consensus

The firm, coded PTI, will list 45 million shares on the Hanoi Stock Exchange (HNX) on March 2, 2011.

The other five insurers already listed on Vietnam’s official bourses include Bao Minh (BMI), Bao Viet (BVH), PetroVietnam (PVI) and Vietnam Re-insurance Corporation (VNR).

PTI, with a chartered capital of VND450 billion ($21.7 million), is the fifth largest insurer in Vietnam with a 3.4 per cent market share, following BVH, BMI, PVI and PJICO.

“By analysing its business activities and investment risks, we estimated after listing on the stock market, the reasonable price of PTI is likely around VND18,000, lower than VNR (VND26,000), PVI (VND21,000) and BVH (VND94,500),” said Nguyen Mai Phuong, associate director of VNDirect Securities Company’s Research Department, which is PTI’s listing consultancy company.

Phuong said in 2011, it was expected that PTI reached the after-tax profit of VND120.6 billion ($5.8 million) with the earnings per share (EPS) of VND2,682.

HNX’s deputy director Nguyen Vu Quang Trung said PTI would list amid a gloomy market.

“However, due to the insurance industry’s important role in Vietnam’s economy and PTI’s good track record, the firm is promising as a good investment choice,” he said.

PTI’s general director Pham Anh Tuan said he expected an average dividend of 15 per cent per annum.

Last year the company reaped VND733.8 billion ($35.4 million) from insurance premium, up by 15 per scent against its initial plan, and VND190 billion ($9.17 million) from financial investment. Its earned a net profit of VND107.62 billion ($5.2 million) in 2010.

It expects to turn over VND1,320 billion ($63.7 million) in 2011, including VND 1,050 billion ($50.7 million) reaped from insurance premium, and gain a net profit of VND121 billion ($5.8 million).