Oil prices

It is time, in our view, for many Asian countries to limit their dependence on fossil fuel. China and Japan are doing that, others should follow.

Our target price for end-2018 (WTI) is around $80/ bbl.

Vietnam Ecommerce's Landscape

Vietnam ecommerce market is forecasted to have CAGR of more than 33% in the period 2017-2022. Smartphone users account for 84% of Vietnam’s population (96 millions) along with an internet penetration rate of over 50%. This is the sweet spot for both onshore and offshore retailers.

NCS - Update on Initial Coverage Released of NoiBai Catering Services

Noi Bai Catering Services JSC (NCS – UPCOM) is a leading player in flight catering and related services at NoiBai international airport. Due to its monopoly status in providing catering service for Vietnam Airlines, as well as its extensive experience in the catering services industry, its business activities have been growing up over the years. 

POW – Update on 4M 2018 Business Performance

After the turnaround in 2017 business results, POW’s performance in the first 4 months of 2018 continues to show significant improvements with even more catalysts to come in 2018 - 2019.

CSM – Earnings Target Is Hard to Reach

For the financial year 2018, CSM plans to record revenues of VND 3.8 Tn (+7% YoY) and NPBT of VND 105.3 Bn (+53%). Although the top-line target is reasonable, we do not agree with them about the bottom line.

GMD – Update from 2018 AM

In 1Q2018, GMD posted revenue and EBT of VND689 Bn (-20% YoY) and VND1,507 Bn (+1,177%),respectively. After selling 51% stake in GMD logistics and 49% in GMD shippings in Feb 2018, revenue of logistics segment down 61% leading to a decrease of 20% in total revenue YoY due to not consolidating revenue from 2 companies. However, revenue from port businesses surged 32% thanks to the high utilization rate of Nam Hai Dinh Vu Port (~ 110% capacity) with support from Nam Hai ICD. Gross profit margin improved 7% thanks to not consolidating logistics segment (since Feb 2018) which has lower GPM compared to Port operation. As a result, Gross profit and core EBT experienced a modest growth of 5% and 10%, respectively.

PPC – Update from 2018 AGM

With earnings in 4M 2018 reaching over 55% of the annual guidance, the 2018 AGM of PPC reveals positive signals about its 2018 outlooks.

Q1 2018 Business Results of Listed Banks

Total operating income (TOI) and PBT of 14 listed banks (HSX, HNX, and Upcom) were VND 56,340 Bn and VND 20,126 Bn, up by 35% and 52% YoY respectively.

GAS – Core Business to See Growth In 2018

Under the restructuring plan, PetroVietnam (PVN) plans to reduce its ownership in GAS from 95% to 65% during 2018-2019. However, the 2018 AGM confirmed that the divestment cannot be completed this year. The market immediately reacted negatively to the information. GAS share price dropped sharply in the last sessions of April from VND135,000 to VND96,500. However, the core business of GAS is still growing well so far in 2018 and the company is expanding its gas pipeline capacity.

Lach Huyen Port’s operation and long-term impact on Cam River ports

The first deep water port in Northern Vietnam, Lach Huyen Port, will be operational on May 13^th. The first two berths of the port have been developed by a Joint venture with Hai Phong International Container Terminal (HICT). When the first phase is completed, it will handle up to 300k TEUs this year.