GAS – Long-term Prospects from Future Investments

PetroVietnam Gas Joint Stock Corporation (GAS – HSX) approved its plan for 2017 during its recent annual general meeting.  RongViet Research believes that the plan is conservative and that the company’s long-term prospects are positive, given its major investment projects.  Moreover, oil prices have also been recovering and are beginning to stabilize at around $52-57/barrel after the strong surge in 2016.

DHG - When the catalyst for its stock price gradually materializes

Q1/2017 business results: DHG's revenue and NPAT are estimated to be VND882 billion (+ 8%yoy) and VND179 billion (+15%yoy), respectively. For the full year of 2017, RongViet Research still maintains its NPAT forecast of VND780 billion, translating to an EPS of VND7,835. Thanks to this catalyst, DHG’s price has surpassed our valuation, and the stock is currently trading at historical high P/E of 17.1 times. Although the catalyst’s effect seems to have cooled down recently, it can still rise again at any time until the day the FOL is actually lifted. The market can continue to speculate on this catalyst, but the core business surely will not change in a day or two.

PNJ - Q1 2017 Earnings Results

Today, PNJ quickly reached the ceiling price in the afternoon session, with the highest matching volume in a year, following the positive information of its Q1 results. Accordingly, Q1 revenue grew 34.5% and EBT jumped 104.4% over the same period. Excluding the two extraordinary items in the first quarter of 2016 (the provision for investment in Dong A Bank - VND84.5 billion and the transfer of land at Thu Khoa Huan street (EBT of 40 billion)), the profit of PNJ still rose 58%.

Q1/2017 Export and Import Updates

In Q1 2017, the total import and export turnover was $91.21 billion, a 19.9% YoY increase.The total export turnover in Q1/2017 was $44.64 billion, representing a 15.1% YoY increase. The export turnover for the 10 largest groups was $31.76 billion in Q1 2017, accounting for 71.1% of total exports. Most of the components in the 10 largest groups attained positive growth, with the exception of cellphones and accessories, which experienced a 6.1% decline in growth. The area with the strongest growth included computers, electronics and accessories, with the total quarterly export turnover reaching $5.52 billion, 47.8% growth. We think that the abnormal growth in this group is due to the participation of the Samsung Electronics HCMC CE Complex project, which began operating in the middle of 2016. Additionally, the decrease in cellphone exports is also linked to Samsung’s operations, and the release of Samsung Galaxy S8 will assist the recovery of this group.

BMP - AGM Update

This morning, Binh Minh Plastics JSC (HSX: BMP) held its 2017 Annual General Meeting. The company discussed many issues, including room for foreign investors, bonus shares, and the divestment of SCIC.

HSG’s New Project Postponed: Focus on its Core Business

The PM has just ordered HSG to cancel its Ca Na Complex for a variety of reasons.  The domestic and global steel demand needs to be carefully assessed in order to determine the appropriate size, capacity and timing of such project. Moreover, environmental issues also need to be evaluated, as the public became widely concerned due to Formosa’s incident.  Another issue is the infrastructure, as the project may require the construction of a deep water port, railways and roads and a large amount of capital will be required.

BCE – Stable Business and High Dividend Yield

Becamex BCE (BCE-HSX), a member of Becamex IDC, is in charge of industrial (warehouse and industrial park infrastructure) and civil construction. We have a new view regarding the company’s business prospects, based on its latest 2017 annual shareholder meeting.

VFG - 2017 Annual General Meeting: Gathering Momentum

Vietnam Fumigation JSC (HSX: VFG) is the second largest company in the agrochemical industry, only topped by Loc Troi. VFG mainly operates in the following four segments: agrochemical manufacturing and trading, fumigation and PestMan services, seed trading and real estate. VFG is a distributor for a large amount of famous agrochemical brands, including Syngenta, Kumia, Sumimoto, Nipon and Soda.

NLG: Updates on a New Project Development

Nam Long Investment Corporation (HSX: NLG) announced that it will cooperate with Hankyu Realty and Nishi Nippon Railroad to develop the property project Mizuki Park, with a total area of 26 ha.  The total investment capital of the project will be around VND8,000 billion, in which NLG will contribute 50%.  Mizuki Park will comprise of 4,676 Flora apartments, 170 land plots, townhouses and Valora villas, and will be one of the key projects for NLG in 2017 – 2020.

STG – 2017 AGM Update

South Logistics JSC – Sotrans (STG – HNX) passed its 2017 business plan with significant increases in both revenue and profit.

CHP: Quick Update on its Business Performance in Q1 2017

The electricity output of Central Hydropower JSC (CHP - HSX) in the first three months of 2017 strongly reflects the effect of La Nina. According to a recent update from the company, its electricity output for Q1 2017 reached 240.5 million kWh (+202.9% YoY) and revenue reached 224.5 billion (+158.0% YoY); the average electricity selling price was 1,017 dong/ kWh (-14.8% YoY). With this revenue level, we estimate that the company’s NPAT in Q1 2017 will be VND132 billion (Q1 2016: VND8.8 billion). Therefore, CHP has already completed 60% of its profit target in 2017 during the first quarter (in the submission to the the upcoming AGM).

TTC - AGM Update

The price movements of Thanh thanh Joint Stock Company (HNX: TTC), a company specializing in producing ceramic tiles (4 million m²/year) and porcelain (1.5 million m²/year), have been less positive since the beginning of 2017, as the business results have had no growth. The sales of TTC decreased by nearly 10% in 2016, due to the increased competition from China and the overcapacity of ceramic tiles in Vietnam.  However, thanks to the optimization of production, TTC’s profit margin improved considerably.