Invest in public investment stocks group is to take advantage of profit opportunities from large state infrastructure projects. Join HVA to learn about potential stock codes right after this.
How to identify public investment stock codes
>>>See more articles: Analysis and evaluation of good growth stocks in 2024
Identifying public investment stocks is an important skill for investors who want to seize opportunities from infrastructure projects and public investment. Some ways to help investors identify potential stocks in this group of public investment stocks:
Check financial statements
- Project portfolio: Find information about projects that the company is implementing or planning to implement. Are these projects related to infrastructure, transportation, energy, etc.?
- Customers: Check the company's customer list, especially those that are government agencies or state-owned enterprises.
- Revenue by segment: Analyze revenue structure to see what percentage of revenue comes from public investment projects.
Follow the news
- Financial news sites: Read articles and analysis about the stock market, especially articles related to the construction and infrastructure industries.
- Securities companies' reports: Securities companies regularly release analytical reports on industries and stock codes, including public investment stocks.
- Information from seminars and conferences: Attend these events to get the latest information on policies, public investment projects and related companies.
Using analysis tools
- Technical analysis software: Use software like TradingView, MetaTrader to analyze charts and look for stocks with growth trends.
- Websites providing financial data: Websites such as Vietstock, Cafef provide a lot of information about listed companies, helping you compare and evaluate.
- Discussion groups: Join stock discussion groups to exchange information and learn from other investors.
Evaluation criteria
- Company size and capacity: Large companies with good construction capacity and many years of experience often have a competitive advantage.
- Project portfolio: Companies with a diverse project portfolio and stable capital sources often have the potential for sustainable growth.
- Relationship with the state: Companies that have good relationships with the state and regularly win bids for large projects will have many opportunities for development.
- Rating agencies' assessments: Credit rating agencies such as Fitch and Moody's often give assessments of the capacity of financial investment and business prospects of companies.
Factors affecting the group of public investment stocks
State policy
- Public investment policy: The scale, priority areas, and implementation mechanisms of public investment projects will directly determine the growth opportunities of businesses.
- Fiscal policy: Tax policies, fees, and economic stimulus measures will impact business profits and cash flows.
- Monetary policy: Interest rates and exchange rates affect the cost of capital and the competitiveness of businesses.
- Legal regulations: Regulations on bidding, construction, environment, etc. directly affect project costs and progress.
Macroeconomics
- GDP growth rate: As the economy grows, the demand for infrastructure increases, leading to increased demand for products and services from public investment enterprises.
- Inflation: High inflation will push up input costs, reducing business profits.
- Exchange rate: Exchange rate fluctuations affect the cost of importing raw materials and the competitiveness of businesses.
Specific projects
- Project size: Large projects often offer great growth opportunities for participating businesses.
- Project Progress: Delays in project implementation can affect a business's cash flow and profitability.
- Capital sources: Capital sources for the project (state budget, ODA capital, private capital) will affect the scale and speed of project implementation.
Compete
- Domestic competition: The number of participating businesses and the competitiveness of each business will affect prices and market share.
- International competition: Competition from foreign businesses can reduce the profits of domestic businesses.
Related factors
- Technology: Applying new technology to production and management will help businesses improve efficiency and reduce costs.
- Environment: Environmental issues are of increasing concern, requiring businesses to comply with environmental protection regulations.
- Political Risk: Political upheavals can affect the business environment and reduce investor confidence.
List of potential public investment stocks
Example of a category public investment share potential technology:
| Stock code | Company name | Industry | Basic assessment | Technical review |
| VCG | Vietnam Construction and Import-Export Joint Stock Corporation | Build | Large project, high growth potential. | Positive price trend, good liquidity. |
| HBC | Hoa Binh Construction Group Joint Stock Company | Build | Reputable business, many big projects. | Price is accumulating, waiting for breakout signal. |
| CTD | Coteccons Construction Joint Stock Company | Build | The company has high construction capacity and many large contracts. | Price is adjusting, need to monitor further. |
| HHV | Deo Ca Transport Infrastructure Joint Stock Company | Traffic | BOT project, potential traffic BOT. | Stable price trend, good liquidity. |
| C4G | CIENCO4 Joint Stock Company | Irrigation construction | The company has many years of experience in the field of irrigation. | Price is accumulating, waiting for breakout signal. |
Stocks benefit from public investment
Stocks that benefit from public investment are stocks of companies whose business activities are directly or indirectly related to public investment projects of the state. When the state increases investment in infrastructure, transportation, energy, etc., these companies will have more opportunities to win bids and increase revenue.
Industry groups that directly and indirectly benefit from public investment include:
- Construction: Construction companies directly construct infrastructure projects.
- Construction materials: Companies that produce construction materials such as cement, steel, sand, etc.
- Transportation: Companies specializing in the construction of highways, bridges, seaports, etc.
- Energy: Companies that produce electricity, gas, water, etc.
- Real Estate: Real estate companies benefit from increased demand for housing and real estate projects thanks to public investment.
- Banks: Banks will have more opportunities to lend to public investment projects and businesses in benefiting industries.
- Insurance: The need for insurance for projects, assets and people will increase.
- Finance: Securities companies will have many business opportunities when the stock market is vibrant thanks to cash flow from public investment.
Some typical public investment stocks of industries in Vietnam such as:
- Construction industry
- CTD (Coteccons): One of the leading construction contractors in Vietnam, famous for large, high-quality projects.
- HBC (Hoa Binh): A reputable construction company, participating in many large projects and present in many locations.
- FCN (Fecon): Company specializing in construction of civil and industrial works.
- LCG (Licogi 16): The company has strengths in the field of irrigation and transportation construction.
- Construction materials industry:
- VIC (Vingroup): Multi-industry corporation, in which construction materials play an important role.
- HPG (Hoa Phat): The largest steel manufacturing group in Vietnam, supplying raw materials for many construction projects.
- NKG (Nam Kim): Company manufacturing steel pipes and related products.
- Transportation industry:
- HTN (Hung Thinh Incons): Company specializing in construction of traffic works and technical infrastructure.
- HHV (Deo Ca): The company has experience in the field of highway construction.
- Energy industry:
- PC1 (PV Power): The largest power company in Vietnam, participating in many power projects.
- PPC (Phu My): Electricity and gas production company.
Risks and opportunities when investing in public investment stocks
Opportunities
- Sustainable growth: As the economy grows, the need for infrastructure increases, creating conditions for companies in this group to grow steadily.
- Benefit from stimulus packages: During difficult economic times, the government often launches public investment stimulus packages, creating conditions for businesses in the industry to grow rapidly.
- Portfolio diversification: Investing in public investment stocks helps diversify the portfolio, minimizing the risk of concentrating on a specific industry.
Risk
- Policy risk:
- Policy changes: Sudden changes in public investment policies can negatively affect the business operations of enterprises.
- Protectionist policies: Excessive protectionist policies can limit competition and reduce the efficiency of projects.
- Market risk:
- Interest rate fluctuations: Rising interest rates can increase businesses' cost of capital, affecting profits.
- Exchange rate fluctuations: Exchange rate fluctuations can affect input costs and the competitiveness of businesses.
- Project risks:
- Delayed disbursement: Delayed disbursement of public investment capital can slow down business growth.
- Design Changes: Changing the design or scope of a project can result in increased costs and extended lead times.
- Legal risks: Legal disputes related to the project can disrupt the implementation process and cause losses to the business.
- Competitive risks:
- Fierce competition: Competition among businesses in the industry can reduce profit margins and put pressure on stock prices.
- State-owned enterprises: Competition from state-owned enterprises can limit business opportunities for private enterprises.
Public investment stocks group always the focus of investors' attention thanks to its great growth potential. With the support of analytical platforms such as HVA, helping investors make more accurate investment decisions and build effective investment portfolios. However, the stock market always has many potential risks, so careful analysis, portfolio diversification and close monitoring of market developments are extremely important and necessary for investors.
