TPB – An Aggressive Business Plan for 2018

TienphongBank held its first roadshow in Hanoi last week. The bank will be listed on the HSX (ticker: TPB) on April 19^th and will hold its AGM on April 20^th. Given the information provided in the AGM documents, below are our flash comments on the banks’s operation.

Dat Xanh Group Businesses Updates

Dat Xanh Group Businesses Updates

DXG had strong results in Q1 2018. In the first quarter of 2018, Dat Xanh Group (HSX: DXG) recorded revenues and net profits of around VND 900 billion (+53% YoY) and VND 310 billion (+110% YoY), respectively.

Will the US rejoin TPP?

US president Donald Trump deputized Robert Lighthizer, the U.S. trade representative, and Larry Kudlow, the director of the National Economic Council, to study the possibility of re-entering the TPP.

Vietnam Trade in First Quarter of 2018

Vietnam recorded a trade surplus of USD 2.7 billion in the first quarter, far exceeding forecasts. Exports reached USD 55.5 billion, up 25% yoy while imports were at USD 52.8 billion, up 13% yoy. We would like to highlight some of the positives:

Negative Reactions to Political Risks – Viewpoints from two indcators: CDS and Foreign Capital

Recent signals imply that the VNIndex is slowing down after breaking the peak 1,200 pts. Though many investors are concerning about the correction, no one expects such a strong decrease nearly 2.6% (-31 pts) today.

TCM – Annual General Meeting Update

Considering the impressive earnings growth of 67.4% YoY for 2017, it is obvious that the target NPAT of VND 189.5 Bn (-1.6% YoY) will not satisfy investors. However, when we look more deeply into TCM’s earnings structure, we found that the guidelines were not as conservative as they look, but even slightly optimistic.

LDG - Looking Forward to Another Stunning Year

Long Dien Group’s business includes real estate and tourism. Real estate has been its core segment from establishment in 2010 with the focus on selling townhouse and land lots in Dong Nai. Meanwhile, its major business location are in Phu Quoc, Dong Nai and Ho Chi Minh City. The company plans to expand its coverage to Can Tho City in 2018.

Views on China economy

Talked with our good friend Andy Rothman, Investment Strategist at Matthews Asia in San Francisco. He was previously CLSA’s China Macro Strategist in Shanghai and spent more than 25 years in that country, including stints at the US Embassy in Beijing.

VGS- Company Report published on 06/04/2018

Rong Viet Securities Corporation hereby presents the Company Report on Vietnam Germany Steel Pipe JSC (HNX:VGS) with the overall opinion as follows:

Fishery - New Project for Sustainable Development Strategy of Vietnam’s Pangasius

On March 20, the project of 3-level linking pangasius breed production in the Mekong Delta has been approved by the Government. The idea is to build An Giang as the high-quality pangasius breeding center in the Mekong Delta.

NCT – A fine dividend play

While NCT is not a growth story, the company has paid back almost all the money it made to its shareholders. It has been consistently paying a high cash dividend of VND 9,000-10,000/share for years, implying a dividend yield of 9% at today’s closing price. This is an appropriate choice for investors seeking a high yield paying company.

In addition, NCT has invested VND 65 billion in ALS, equals to 10% of ALS shares at par value. The fair value of ALS could be much higher, implying an added potential appreciation of 5-10% for the stock price.

VNM – A look at the performance of dairy industry leader

2017 was a difficult year for the dairy market due to the fluctuation of raw material prices, and the increase of the number of competitors in the industry. However, Vinamilk (VNM), the leader in dairy industry, has proved its ability to increase its market share through an efficient business strategy. It increased its total market share of the domestic market to 58% (increase by 2% compared to 2016). Major product lines such as liquid milk, powdered milk, and yogurt have grown significantly compared to other competitors.