North Kido shares to sweeten bourse

The confectioner’s large market share makes it a tempting investment

North Kido would be the 26th Vietnamese company to list on the market, also making it the second private joint stock company, after Tribeco, and the second confectionery company, after Bibica.
“All preparations are now complete. Our shares will begin trading on the floor on December 15,” Tran Kim Thanh, chairman of North Kido, told Vietnam Investment Review last week.
North Kido’s shares are set to open at an initial price of VND20,000 ($1.27) each.
However, local investors are “hunting” North Kido shares in anticipation of much higher prices as the company floats its shares in preparation for the stock market.
Company shares, which have a face value of VND10,000 ($0.63), are trading at VND25,000 each ($1.6) on the unofficial market, with demand outstripping supply.
North Kido was established four years ago with an equity capital of VND10 billion ($637,000), which has increased to VND50 billion ($3.18 million).
Food processing company Kinh Do is the major shareholder, owning almost 48 per cent of North Kido’s shares.
North Kido runs a 28,000 sqm factory next to Highway 5 in the northern province of Hung Yen.
The factory’s location allows for easy delivery of its products to Hanoi, Haiphong and other northern areas, according to the company.
The company is looking to extend its business to Taiwan, Hong Kong and Japan when the highway eventually extends to Haiphong Port.
North Kido’s products, which are sold under the Kinh Do trademark, are mainly consumed in the north of Vietnam, where they currently enjoy a 25 per cent market share.
The company’s desire to further expand its production has received approval, with Hung Yen authorities agreeing to provide land use rights for an additional 75,000 sqm at a preferential price 20 per cent lower than the market value.
Last year, North Kido notched VND208 billion (more than $13 million) in revenue, yielding VND15.25 billion ($965,000) of net profit, up from VND72 billion ($4.5 million) and VND6.4 billion ($405,000), respectively, compared to 2002.
This year’s targets are VND230 billion ($14.6 million) in revenue and VND23.4 billion ($1.5 million) in profit, while the targets for 2005 are VND260 billion ($16.5 million) and VND27 billion ($1.7 million).
The company paid 16 per cent dividends last year, which it hopes to increase to 18 per cent in both 2004 and 2005.
Apart from North Kido, Nui Ba Cable Car Tour Company (CaTour) is slated to list on the local stock market by the end of this month.
The Tay Ninh province-based company specialises in tourism services, including operating a cable car system and water slides at the popular Ba Den Mountain tourist complex.
It also works with other companies to arrange inbound tours.
CaTour was formerly under the umbrella of the Tay Ninh Tourist Corporation.
It went public in 2001 with a chartered capital of VND15.985 billion ($1million), with the state holding a 51 per cent stake, staff 21 per cent and outsiders holding the remainder.