HDG – Hado Centrosa marks a spectacular return

Last week, our analyst had a meeting with representatives of Ha Do Group (HSX – HDG). Once an contruction unit under the Ministry Defense, HDG’s ability to access the military’s land bank at promising locations is a huge advantage over other property developers. HDG currently has a pipeline of 7 projects in Hanoi and HCMC and one 75-hectare residential area in Laos. While the electricity and leasing segments continue to bring steady profits and cash inflows, the coming of (1) Hado Centrosa Garden (Z756) (2) Ibis Hong Ha and (3) Hado Parkview promise to put the Company back on its growth track after a slow year of 2015.

SJD: 6M2016’s business update

In the first six months of the year, El nino negatively affected the production of Southern hydropower plants including Can Don Hydro Power Joint stock company (HSX:SJD). In particular, we did update that except Na Loi (a Northern hydro power plant), both three remaining plants (Can Don, Ry Ninh II, Ha Tay) would probably not reach their volume target.

ITC – Major shareholder increases ownership in light of new developments

Investment and Trading of Real estate JSC (HSX – ITC) just announced that one of its major shareholder, Future Architecture Design JSC (FAD) has registered to buy 6.7 million shares of ITC. The transaction will be performed between the 11^th and 29^th of July 2016 via the Vietnam Securities Depository.

BCI - Introduction of research report 06/07/2016

BCI is one of the most experienced real estate developers in HCMC. The firm is advantaged by a large land bank of over 300ha it has accumulated over the years at a very low cost. BCI was once known for its conservative business strategy and unfluctuating revenue and earnings. Following the withdrawal of the State-related HFIC as its largest shareholders and the following acquisition by KDH in mid-2015, BCI witnessed a major shift in its direction where the Company has been actively seeking to liquidate a good number of non-operating assets to focus resources on its larger projects. To counter the location disadvantage of its projects, BCI plans to start the construction of the two-kilometer Binh Tien Street BT project this year. We view these as necessary preparations that should put BCI on a fast growth tracks starting 2018.

SVC -Tough competition in 1H2016

Today, our analysts had a meeting with the representative of Saigon General Service Corporation (HSX-SVC) in order to update the company’s strategy, orientation and latest business performance

HUT- Updates on major current projects

Tasco JSC (HUT- HNX), a listed company in the business of BOT and BT infrastructure development has just performed a remarkable half-year, on which RongViet Research is going to update, regarding important projects and Q2’s result estimates.  

HPG: Steel’s strong growth in 2016

1H2016 ASP is around VND 9.4m per ton, considerably lower than that of 2015 (around 10.8m per ton), but already an improvement compared to late-2015 thanks to input price rise and domestic construction demand. Construction steel volume surged in April and May partly resulted from the distributors’ speculative activities, which has stopped in June. As the production process is extensive and requires 4 to 6 month- input stock, gross margin stays stable at around 20%, which can be expected to remain throughout the year.

PAC (HSX): Company report releases on July 4th, 2016

Dry Cell & Storage Battery Joint Stock Company (PAC-HSX) is the leading battery manufacturing company in Vietnam. With the advantages in market share, distribution channel, and customer relationship with Thaco Truong Hai, Ford, demand for PAC is ensured and growth is stable.

PNJ - Company Report Release on July 04, 2016

The positive outlook of Vietnam’s consumer goods market is supported by (1) the young and growing population, (2) recent improvements in income per capita and (2) consumers’ growing tendency to use high-quality, branded products increases. PNJ currently holds over 25% of share in the domestic branded jewelry market, outweighing runner-ups like Doji and SJC. Wide market coverage and strong brand recognition are primary advantages that has helped PNJ to expand their network.

Brief update about DPR and PHR

Recently, our analyst had a company visit with the representative from Phuoc Hoa Rubber JSC (PHR-HSX) and Dong Phu JSC (HOSE –DPR). In 1H2016, rubber price keeps its recovery momentum thanks to three supporting factors (1) Decreasing supply due to some hinder measures in exploiting and exporting, (2) The recovery of oil price and (3) The recovery of Chinese automobile industry

Manufacturing activities remain positive outlook

In the 1H2016 socioeconomic situation report, the industrial production index (IIP) recorded a positive growth, +7.5% yoy. In particular, the manufacturing increased by 10.1% and made the largest contributor (equivalent to 7.1 percentage point) to the industrial production growth rate.

PNJ - Lucrative prospect thanks to the golden age structure and the change in consumer trend

After holding for more than 8 years, Vietnam Azalea Fund Limited, one of four investment fund of Mekong Capital, has just announced that it will divest 3 million shares of Phu Nhuan Jewelry JSC (HSX: PNJ) using negotiation method this July. We believe that the main reason of this divestment is the force to close Azalea Fund next year. At low cost of just around VND35,500 per share, the investment in PNJ has brought the fund quite attractive rate of return. In addition, the price movement of PNJ stock recently has been positive with the liquidity improvement and the growth in stock price.

About PNJ, we highly appreciate the prospect of the Company’s retail segment. Retail is one of three distribution method of PNJ along with wholesale and export. This segment plays the most important role of the three by contributing up to 55% of total revenue and 80-85% of gross profit. More importantly, this sales channel has the highest gross margin of about 27% compared to the wholesale (3-5%) and the export (10-12%).