CHP – Waiting for New Growth Phase in 2019

At the moment, it can be seen that FY2017 is the peak in operation of CHP and 2018 business results may witness a relative decline. However, given high potential upside in stock valuation and strong growth prospect in business results from 2019 onward, we believe that 2019 would reveal some good opportunities to accumulate CHP at favorable prices.

Q4/2017 ETFs’ Reconstitution Forecast

2 foreign ETFs will reconstitute their portfolios in December. 

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.