Since investing in Vietnam in 1996, until now Samsung through its subsidiaries has poured tens of billions of dollars through specialized subsidiaries and is one of the largest investors in Vietnam.
Not only direct investment (FDI), the “giant” from Korea also invests indirectly (FII) in Vietnam through businesses on the Stock Exchange, typically the “handshake” between Samsung and Samsung. SDS and CMC Technology Group JSC (CMC Group – code CMG).
Starting cooperation in 2016, but in May 2019, a member specializing in IT and Logistics solutions of Samsung and CMC Group signed an agreement on strategic investment to enhance comprehensive cooperation in all fields of the world. strengths of the two sides, especially in the potential information technology field.
Samsung SDS officially poured investment capital into CMC Group from August 2019 after buying 5 million shares on the exchange through the put-through method at an average price of 40,000 VND/share and 25 million shares issued privately with price 34,000 VND/share. The total value of the deal at that time was about VND 1,050 billion.
After the transaction, Samsung SDS has become the largest shareholder in CMC Group with an ownership rate of approximately 30% and has been maintained until now. The capitalization of this Telecommunications – Technology Group is currently nearly 6,050 billion dong, corresponding to Samsung SDS’s investment with a market value of up to 1,815 billion dong, 1.7 times higher than the initial time.
Big profit after nearly 3 years of holding, but few people know that this investment of Samsung SDS once “evaporated” nearly 40% of its value at the bottom of Covid in March 2020. This stock took a long time to recover and started to break out strongly after the 2021 Annual General Meeting in July last year. After less than 4 months, CMG doubled to a historic peak of over 64,000 dong/share (adjusted) before falling back to the current level of 55,500 dong/share.
Basically, the profit from the investment in CMC Group at the moment is only temporary in theory. In fact, Samsung is more towards long-term strategic investment with the aim of developing the market.
On the side of CMC Group, this group was formerly the ADCOM Center of the Institute of Microelectronics Technology, established in 1991 with an initial capital of only VND 50 million. Up to now, CMC Group has become one of the leading technology enterprises in Vietnam.
CMC Group’s business areas focus on Technology and Solutions, Telecommunications Services and International Business. In which, the Technology and Solutions segment is the spearhead of this business in the coming years with the expectation to account for a high proportion of revenue.
Since cooperating with Samsung SDS, CMC Group’s business situation has also improved. In the third quarter of fiscal year 2021 (from October 1 to December 31, 2021), CMC Group recorded net revenue of VND 1,838 billion, up 19% and profit after tax of shareholders of the parent company reaching VND 98 billion. VND, up 37% over the same period.
In 9 months, CMC Group achieved 4,515 billion dong in net revenue and 208 billion dong in after-tax profit belonging to parent company shareholders, up 17% and 41% respectively over the same period. With the results achieved, the group has completed 74% of the revenue target and 97% of the full year profit target.
Source: CafeF
Source: Vietnam Insider