MPC – Efforts to Come Back to the Race

After two years of being delisted, Minh Phu comes back trying to resolve long existing issues to get ready to re-list on HOSE in 2018.

Greece finally exits from eight years of international financial assistance

The country, on Monday, ended eight years of international financial assistance but has a high tax level, poor competitiveness and a gigantic public debt. Is it the end of the Odyssey?

Samsung Display and LG Display to be the OLED suppliers for Apple

Since the iPhone X and iPhone 8, Apple has been using organic light-emitting diode (OLED) panels for its screen instead of the previous liquid-crystal display (LCD). OLED is reported to be crisper and easier on batteries. However, iPhone X sale appears to disappoint expectations since it was first launched in November 2017.

NT2 – The problem lies not in gas supply but in gas prices

Although the supply of gas from old gas fields in Nam Con Son basin is projected to fall sharply from 2020, supply from new gas fields and the LNG Thi Vai project would ensure adequate gas supply for power plants in the Southeast region. However, as these new sources have much higher gas prices, this change would result in higher average gas prices for power plants in the Southeast region in the coming years. In addition, the contract volume (Qc) of thermal power plants, including NT2, was reduced from 2018, business results of the company would become even more sensitive to the adverse effect from rising gas prices.

BMP: Update on 1H 2018’s result

As of the end of 1H2018, BMP had almost no growth over the same period last year in most of the key indicators such as output, sales and EAT, completing over 40% of the year guidance. Given the seasonality of the construction materials sector, BMP's 1HFY2018 results turned out to be within expectations.

Equity Markets Correlation and Currency Volatility

We notice that in the past six weeks correlations between the VN Index and other equity markets has somehow evolved. In June the correlation between the VN Index and the MSCI Frontier Market Index was around +52% It has now decreased to a negative level of 20%.  Noticeably the correlation with the S&P 500 has risen to 30%.

Tariffs and Trade

The bottom line is that so far trade tariffs have not noticeably impacted overall global growth. However, there are no signs that the US and China are any closer in finding any agreement on the issue. The likelihood is that the dispute will run beyond the November US mid-term elections. Politically Mr. Trump is in a weak position following many by-elections where the Republican Party lost ground in key states that it controls, notably Ohio and Kansas.

MWG: Update on 1H 2018’s result - Strengthening confidence in Bachhoaxanh

In the first half of 2018 MWG posted an impressive growth of 43% in net revenue and 44% in net profit YoY. This is the direct result from the fact that the store counts of Thegioididong and Dienmayxanh increased by 45 and 320 respectively. Moreover, even though it still has to make a profit, Bachhoaxanh- the minimart brand- is constantly improving and getting very close the break-even point.

Vietnam’s shopping mall industry overview

Modern retail channels is taking off in Vietnam, supported by many positive factors such as young population, expansion of middle class and retail spending boom. In general, traditional retail expected to continue to dominate the whole retail market due to Vietnamese people’s shopping habits. The growth of retail property has closely related to the development of retail industry. In 2017, department stores records current value growth of 15% in 2017, to reach VND 8,326 billion. Over the forecast period, department stores is expected to see a value CAGR of 27% at constant 2017 prices, to reach VND 27,457 billion in 2022. Compared with other regional markets, Vietnam still has a huge potential for retail property.

Growing Retail Market and the Uprising of Experiential Retail

Along with the development of retail markets, the growing model in which companies open more stores to acquire market share is coming to an end. The collapse of Toys R Us and Dick Smith or the difficulties that Best Buy, Michael Kors and other major retail chains are facing are putting pressure on the traditional retail model to renew itself. In this context, experiential retail is a model that many big retailers are pursuing.

Overview on the Alcohol Market in Vietnam

Alcoholic drinks are considered to be a method for connecting and expanding the relationship for a long time and it has become an indispensable part of the communication culture of the Vietnamese people. With a young population structure and a growing middle-class, alcoholic drinks are forecasted to keep growing at a CAGR of 11.8% during 2018-2022 (according to BMI). Besides, beer is still a ‘must’ consumption item, accounting for 97% of total alcoholic consumption.

REE – Update on 2Q 2018 Business Performance

Because of a strong business performance in 1H 2018, we expect that REE’s 2018 earnings growth will be around 20% in 2018 and 15% in 2019. However, as we go into specific business segments, we see several significant issues that arose recently, potentially weakening market sentiment on the stock.