Haiphong seaports overview

We estimate seaports in Haiphong handled a total of 4.5 mn TEUs of containers in 2017, rising 11.1 percent YoY to reach an all-time high, accounting for 30 percent of total container throughput in Vietnam. CAGR 5 year from 2012-2017 was 11.3 percent. As an international terminal for import-export activities, we expect Haiphong’s container throughput for 2018 to reach 5 mn TEUs (+12 percent YoY) due to: (1)  sustainable FDI growth, (2) Northern Vietnam to remain a large proportion of FDI flows into Vietnam.

Prospects of FDI Flows To Developing Asia

In 2018, FDI inflows to developing Asia are projected to remain stagnant although there could be an increase in intraregional FDI to the CLMV countries, including Cambodia, Laos, Myanmar and Vietnam. The expectation of an increase in global FDI is tempered by a series of risk factors, including 1) Geopolitical risks, growing trade tensions and concerns about a shift towards protectionist policies, 2) Tax reforms in the United States, 3) Longer-term forecasts for a potential economic slowdown and 4) Rising interest rates in developed economies with potentially serious implications for emerging market currencies and economic stability.

Van Phu Updates

Van Phu is a developer owning a huge land bank in Ha Dong District, Ha Noi and some land lots at prime location in other district such as Giang Vo, Nam Tu Liem, Dong Da and Tay Ho, Hanoi. The company is proactive in the space of infrastructure development through Build & Transfer (BT) projects, which it executes in exchange for land.

PXS – Hoping for 2019

As an EPCIC company, PXS is suffering from the downtrend in the oil price. Because most of its revenues come from the M&C segment, the business has been experiencing a “gloomy” period for years. PXS will face another difficult year before things bottom out in 2019.

Yeah1 is about to list – an interesting case

Founded in 2006, Yeah1 Group (YEG) is the largest Fully-integrated and Multi-channel media platform in Vietnam. YEG owns the largest Youtube multichannel network in Asia and operates the 6^th biggest YouTube Multi-channel network in the world by views. With 80 percent of total revenue coming from overseas, YEG is also expanding into Thailand, Indonesia and the Philippines, looking to increase its global footprint in the international digital media and advertising industry.

SCS – Good Business but Rich Valuations

Overall, SCS has a solid business with great margins. We expect the company to maintain its bottom line growth by 20%/year thanks to its competitive advantages.  However, the stock is trading at a rich valuation of 26.6x trailing P/E.

QNS – Expecting a Better Performance in Q2/2018

QNS is leading the soya milk market with an 86% market share. In the past two years, the growth of soya milk has been slowing down. Faced with this situation, QNS has been "more active" running more marketing campaigns as well as employing experienced people in FMCG to expand the coverage of soya milk products in the market. However, even though this a potentially interesting segment, it seems that the company is facing many challenges in expanding its market share.

Fisheries - Shrimp to Be Put Under SIMP

On May 29, 2018, shrimp has been officially put under the US’s Seafood Import Monitoring Program (SIMP)

Conglomerates: Spin-off

A company would conduct a spin-off so that it can focus on managing its core products. Conglomerate using products that are unrelated to each other, therefore a spin-off would allow a company to get rid of business units that are experiencing little or no growth and focus on a product or service that has better long-term potential. In addition, if a portion of a business is going in a different direction, such as having different goals than the parent company, then it may be spun-off into its own entity. Value can then be unlocked.

Indonesia Imposing Anti-dumping Duties on Color Coated Steel: Not Ominous

The Indonesian Anti-Dumping Committee has just announced the imposition of anti-dumping (AD) duties on color coated steel sheets imported from China and Vietnam at rates ranging from 12% to 28% for five years. Two listed color coated steel exporters, HSG and NKG, are subject to duties of 12% and 19% respectively.

Indonesia had previously levied AD duties of 14% to 37% on cold rolled coils from Vietnam, Korea, China, Japan and Taiwan since March 2013 and continued the safeguard measure after the 2015 sunset review.

External Debt Stock of Middle Income Countries (MICs)

Argentina has asked for a USD 50 billion loan from the IMF while Indonesia and India had to raise their benchmark interest rates. Such strong fluctuations warn of MICs’ vulnerability associated with external debt.  Investors pay more and more attention to whether Vietnam is in a safe zone or not.