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.

Update on real estate companies’ AGM

In recent annual general shareholders’ meeting, many real estate companies have announced their business plans for the whole year. Generally, companies set high targets for earning, which is around 50% higher than the previous year on average. We suppose that the plans can be completely feasible and achievable, because many projects are approaching their handover phases, creating a driving force for revenues and profits.

Updates on Industrial Properties

The potential for industrial real estate is becoming enormous given the increasing flows of FDI and the expansion of domestic production. However, Vietnamese developers have to face intense competition with other industrial park operators in ASEAN countries, especially Indonesia who has been offering great incentives to industrial investors.

Opinion- NAFTA and the Sierra Club

NAFTA (the North American Free Trade Agreement between Canada, the US and Mexico) has been on the news since before President Trump was elected. The agreement went into effect in early 1994 and was preceded by the Canada-US Free Trade Agreement, signed in 1989. This author worked on the latter as a graduate student.