Viglacera – Industrial Parks bring bright prospect

Viglacera – Industrial Parks bring bright prospect

PC1 – Power Construction Segment as Growth Driver in Q4 2017

Although business results were not so impressive in the first three quarters this year, with net income to parent company’s shareholders of VND180 billion (-31% YoY), PC1 is still confident that it could achieve its earnings target this year, thanks to the strong growth of its power construction segment and the contribution from hydropower segment.

Framework for Analyzing the Pace of Technology Substitution

An indispensable part of corporate analysis is evaluating the trend and potential of a business product. Kodak, Nokia were once successful companies until they failed to catch up with the development of modern technologies – digital cameras and smartphones. In these cases, the analysis requires an accurate estimate of the pace of technology substitution. According to the authors of Harvard Business Review, this pace does not necessarily depend on the technology itself but on the ecosystem associated with it.

October Trade Preview: Trade Surplus to Maintain This Year

• Vietnam trade surplus surprised on the upside in October.
• Exports of electronic products were responsible for more than half of the headline exports growth.
• Imports of the domestic sector slowed down, resulting in an overall trade surplus.
• 2017 trade surplus is estimated at around USD2 billion.

Is Current PE of the VNIndex Overpriced?

The VNIndex officially surpassed 900 points. In the most optimistic scenario, perhaps not many investors think to this level when the VNIndex still closed at 664.87 points by the end of 2016. Until now, it has increased 35.8% YTD and is one of the best bull markets in the region. The fact that foreign capital flows into the market nearly 14,000 billion this year has partly shown the attractiveness of the Vietnam stock market.

SVC – Updates From Investors Meeting

On 15 November 2017, Saigon General Service Corporation (HSX:SVC) held a meeting with investors to share information on the business results in the first 9 months of the year 2017.

Pharmaceutical Sector – 9M 2017 Earnings Picture

In overall, after the correction phase in Q3, recent events have delivered top pharmaceutical companies back to the valuation level of over 20 times P/E. Meanwhile, the P/E of small stocks such as DP3 and DHT has also risen dramatically since the beginning of the year, making them not cheap anymore. As 2017 coming to an end, this is a good time to assess the growth potential of these stocks to see which stocks truly deserve such high P/E ratio.

QNS – Business Update Q3 2017

Quang Ngai Sugar JSC (Upcom: QNS) has just held a meeting to publish the information about Q3 2017 results as well as the future direction of sugar and soymilk business. RongViet Research would like to give the investors some key points

DRC – Business Update Q3 2017

Da Nang Rubber JSC (HSX:DRC) announced its Q3 business results with net sales of VND877.9 billion, up 10.4% compared to the same period of last year. Notwithstanding, DRC’s net profit after tax (PAT) was only VND25.3 billion, and decreased 69.6% YoY. In the first nine months of 2017, DRC fulfilled 72.6% of its sales target, but only 24.2% of profit’s goal.

NT2 – Business Update in 10M 2017

Despite poor business results in the first three quarters of this year, with reported NPAT falling by 43% to about VND491 billion, PetroVietnam Power Nhon Trach 2 JSC (HSX:NT2) kept gaining investors’ confidence during its recent analyst meeting on 10 November 2017. According to the company, the successful major repair work in 2017 and the temporary halt of Competitive Generation Market (CGM) led to strong business results in October, while 2018 outlook could be far stronger.

HSG- Underperforming FY2016-2017

HSG- Underperforming FY2016-2017

HSG has ended its fiscal year with a disappointing net profit even though other indicators met its growth targets. HSG estimated that the total sales volume of the FY was 1.66 million tons, up 20% over the same period last year and exceeded 5% of the plan. Revenue reached over VND26,000 billion, up 46% over the same period and exceeded 14% over the plan. It can be seen that HSG achieved impressive revenue growth, thanks to a satisfactory sales volume and better sales prices compared to the plan. However, HSG’s EAT is only VND1,330 billion, down 12% YoY and 19% lower than the plan. Taking into account the fact that the world steel price was higher in FY2016-2017 than the previous fiscal year, the underperforming results could be attributed to two main reasons as follows:

PVT – Profit would return to growth track from 2018

Petro Vietnam Transportation (HSX:PVT) has lately announced its Q3 2017 business result with consolidated revenue recording VND1424 billion (-11%YoY) and profit after tax (after minority interest) of VND102 billion (-6%YoY). So, for the first nine months, the firm posted accumulated revenue of VND4447 billion (-8%YoY) and bottom-line (after minority interest) of VND256 billion (-15%YoY).