VLB [NON RATED] - Beneficiary of increasing construction stone demand

- Bien Hoa Building Materials Production and Construction JSC (UPCoM: VLB) is the largest construction stone manufacturer in Dong Nai Province.

- VLB manages five stone quarries that have a total mining capacity of 5.7 million cbm per year and a total mining reserve of 94 million cbm.

- In Q1 2023, VLB’s revenue dropped 8.9% YoY due to the slow pace of public investment disbursement and Vietnam’s depressed residential real estate sector.

- However, given our expectation for major infrastructure projects in southern Vietnam to start construction in H2 2023, we expect a surge in construction stone demand will benefit VLB.

- Compared with competitors in the region, VLB’s advantages include its large mining reserve, longstanding mining licenses, and favorable quarry locations.