BMP Result Update – Company Report Release on 26/10/2017

RongViet Research has just released Q2 2017 Result Update Report on Binh Minh Plastic JSC (HSX:BMP) with the following overview and recommendation:

BMP is a state-linked plastic pipe producer whose long-standing brand is widely recognized. Despite being a leading producer in a profitable industry, BMP recently faces up with fierce competition from new entrants that execute aggressive trade discounts. Additionally, plastic pipe producers including BMP are experiencing deterioration in their profitability due to the recent recovery of plastic resin price, which is correlated to the oil price. Assuming the current situation prolongs, we expect BMP’s profit to rebound only if the company manages to increase its sales prices.

Quarterly result update: LHG and NTC

Long Hau JSC (LHX: LHG) announced Q3  2017 result with revenue of VND64.3 billion (-11% YoY) and profit after tax recording VND27.7 billion (-31% YoY). So, in the nine months towards the end of September 2017, the company has completed 37% revenue and 54% profit after tax guidance. The underperformed profit after tax result is not surprised given the firm has taken effort to liquidate contracts of slow payment clients in 9M2017. For new land lease activity, with payment collection requirement to recognize revenue of more than 90%, we expect result of new land lease to be mostly recognized in Q4 2017.

QNS - Rumor About Q3 2017 Result.

QNS share price has fallen 16% from VND66,000 to VND55,200 for a week. Meanwhile, there is a rumor about the company’s disappointing Q3 results.

Mizuki Park – The Biggest Contributor to Nam Long Growth

Mizuki Park – The Biggest Contributor to Nam Long Growth

PNJ: Analyst Meeting Updates on Q3 2017 Results

After the first nine months, PNJ recorded a revenue of VND7,755 billion (+31% YoY). Gross profit also increased 31% to VND1,347 billion and the PBT gained 42% to reach VND630 billion. In Q3 2017 alone, net revenue of PNJ was VND2,279 billion (+15% YoY). Gross profit and PBT were VND396 billion (+25 YoY) and VND158 billion (+14% YoY).

HCM: Quick Comments on 9M 2017 Earnings Results

After the 9M 2017, HCM recognized a total revenue of VND870 billion (+48% YoY, 86% of year’s plan). The PAT was around VND368 billion (+61% YoY). In the same period, HCM exceeded its earnings plan by 2%. That said, in the Q3 2017, the revenue of HCM was more than VND341 billion (+49% YoY), resulting in a PBT of VND169 billion (+66% YoY).

Updates on the Ratio Market Cap to GDP

In Q3, GDP saw an impressive growth rate which exceeded many forecasts and turned the target 6.7% into visible. Stock market tended to be benefit from such a high growth rate of the economy.

Comments on State Budget in 9M2017

The first nine months in 2017 witnessed the budget revenue reaching VND843,100 billion (+13.9% YoY), while the budget expenditure was VND904,600 billion (+6.6% YoY). The state budget deficit is estimated at VND61,500 billion, decreasing by 43.2% compared to the same period of last year, equal to34.5% of the yearly plan. Budget deficit declined mostly thanks to local budget surplus. As of the end of 2017, local budget recorded a surplus of VND57,500 billion, was better than the target deficit of VND6,000 billion for 2017. In contrast, the central budget deficit was VND119,000 billion, equal to 69.1% of the yearly plan.

PV Power – Quick Assessment of Its Power Plants

PetroVietnam Power Corporation (PV Power) is the second largest power generator in Vietnam. According to its recent public announcement, the company plans to offer 29% stake via IPO and to key investors in this December. With electricity generation activities accounting for about 96% of total revenue and gross profit, this business segment plays a critical role in performance of PV Power.

SMV - Supportive Industry Got Ample Room for Growth

Seoul Metal Vietnam Co., Ltd. (SMV) is a subsidiary of Seoul Metal, a system of 12 factories located globally specialized in manufacturing precision mechanical products used in electronic devices. Currently, Seoul Metal Vietnam is manufacturing screws, bots and is importing shafts and springs and is an approved supplier in the supply chain of large industrial multinationals such as Samsung, LG and Daikin. In general, SMV is in a healthy growth phase, able to expand its scale and in a healthy financial position to capitalize on the wave of industrialization. The firm – with a chartered capital of VND 145 billion – is  expected to be listed on the stock exchange in 2017 with an estimated price of VND40,000 per share.

CTG - Business Update

Like the other state-owned banks, low capital adequacy and liquidity ratio have limited CTG's growth prospects. With the whole system’s credit growth of over 20%, CTG's credit growth in 2017 has been revised to 18%. Thanks to large amount of deposits from the State Treasury, we forecast CTG's customer deposits to grow at around 13% this year. Net operating income (before provision) is forecasted at VND16,167B (+19.3% YoY). In addition, given our expectation that CTG will prioritize to make provision for SB in 2017, CTG’s provision expense will grow 43.7% YoY. PBT is forecasted at VND8,950B (+4.9% YoY), 1.7% higher than its target. At the closing price of VND19,150 per share, CTG is trading at PBR of 1.1x, significantly lower than the current sector average of 1.5x, and 22.6% lower than our target price of VND23,500 per share. Therefore, we recommend investors to BUY CTG for LONG-TERM investment.

HAX – Updates on Q3 2017 Business Results

Hang Xanh Automobile Service JSC (HSX:HAX) has officially announced Q3 2017 business results after the meetings with its investors on October 12.