Large cap refers to a company with a market capitalization of more than VND 10 trillion. Market capitalization is calculated by multiplying the number of shares of a company outstanding by the price per share. A company's stock is generally classified as a large-cap, mid-cap or small-cap.
Large-cap stocks account for about 70% of Vietnam's stock market. Globally, large-cap companies are often found in the top benchmark indices of the market.
Since large-cap stocks represent the majority of the capital market, they are often seen as the core portfolios. Traits commonly associated with large-cap stocks include:
1. Transparency: Large-cap companies are often transparent, making it easy for investors to find and analyze public information about them.
2. Dividend: Well established large-cap companies are those that investors choose to distribute dividend income. Their mature market establishment allowed them to commit high dividend payout rates.
3. Stability and Impact: Large-cap stocks are often blue-chip companies at the peak of their business, generating stable revenue and income.
These companies are also market leaders. They devise innovative solutions regularly with global market activities, and news about these companies often has an impact on the market as a whole.
There are many familiar names such as Vinamilk, BIDV, Sabeco in the list of top 10 largest companies in Vietnam by market cap. Notably, Vingroup maintained its first position on this list with a market capitalization of nearly VND 366,000 billion.
By the end of the trading session on December 31, 2020, the 10 most valuable enterprises on the stock exchange had a total capitalization of nearly VND 2.2 million billion, equivalent to more than USD 91 billion, and USD 3 billion higher than that in 2019.
Data was compiled by VietnamCredit
The most valuable enterprise on the stock exchange is Vingroup whose share price reached more than VND 100,000 / share by the end of the afternoon session on December 31, 2020. Market capitalization of the business reaches VND 365,979 billion, accounting for nearly 10% of the total capitalization on HOSE.
Holding the second position is Vietcombank whose market capitalization was more than VND 363,099 billion and stock price was VND 97,900 / share.
The surge in capitalization of Vietcombank has come from the recent strong rise in prices of this bank's shares. From October to the end of 2020, the market price of VCB rose about 20%, stronger than the increase of the Vn-Index (15%).
VCB shares are concerned by its position as the highest-cap bank in this group on the stock exchange. In the banking industry, the market capitalization of Vietcombank is far ahead of the two banks, BIDV and VietinBank (2 times and 2.8 times respectively).
Following Vingroup and Vietcombank are Vinhomes, Vinamilk and BIDV. The three enterprises continued to hold the 3rd, 4th, and 5th positions in the top 10 compared to 2019.
Owning a market capitalization of more than VND 130,000 billion, Hoa Phat appeared in the top 10 for the first time. According to Hoa Phat Group (HPG), after 11 months, the company produced nearly 5.2 million tons of crude steel, double compared to the same period in 2019.
The company’s profit after tax in the third quarter of 2020 increased by 111% compared to the same period last year. It is believed that Hoa Phat's consolidated profit in the fourth quarter would grow at least 90% yoy in 2019.
The extremely impressive profitability in spite of the Covid-19 epidemic has made HPG's shares and the size of the business capital increase sharply in recent years. This helps Tran Dinh Long, Chairman of Hoa Phat Group, become the third richest person on Vietnam’s stock market.
Sabeco ranked 10th, but shares of this business became a phenomenon when it reached the highest level in the top 10, with nearly VND 200,000 / share, more than doubled that of Vietcombank.
The increase in SAB's market price did not come from expectations on business activities of the company, but from the fact that shareholders of Vietnam Beverage would buy 36% of SAB shares.