HAH – Short-Term Change for Long-Term gain

Hai Phong seaport and HAH’s stock price in particular, once appreciated 50-60% supported by one-off gain from congested frozen container situation and TPP rumor, have come back to reality of fierce competition just one year after. The most inflicted victims here are small sized seaport operators sitting upstream in Hai Phong’s Cam River.  

QNS - Company report release on Aug 21, 2017

We believe the fair price of QNS is around VND87,400/share. This target price, coupled with a VND2,500 cash dividend, yields a total return of 24.6% (calculated based on the closing price on August 18, 2017) Therefore, we recommend investors to BUY the stock.

PTB Result Update – Company Report Release on 22/08/2017

RongViet Research has just released Q2 2017 Result Update Report on Phu Tai JSC (PTB-HSX) with the following overview and recommendation.

PVD - Oil Rig Operation Update

Rong Viet Research would like to give some updates about the rig operation of PVDrilling (HSX: PVD) after a meeting with their representative.

PC1 - Update on its business performance

We recently had a conversation with representative of Power Construction JSC No.1 (HSX: PC1) to update about the current business performance of the company. Recent movements in the company has helped us confirm that that our expected catalysts for a robust growth in 2018 is gradually evident by the end of this year.

VPB - More Option for Banking Investors

Today was the first trading day for more than 1.33 billion shares of Vietnam Prosperity JSB. (VPB – HSX) on the HSX with the initial price of VND39,000 per share. VPB closed the day with an unchanged price and more than 58 million shares were traded (foreign investors net bought approximately 37.4 million shares). The maximum foreign ownership ratio at VPB is 25%, while the remaining 5% is currently locked to make private placement to IFC (via convertible bonds). Thus, after the trading day, the foreign ownership in VPB reached 25% (out of total outstanding shares of 14.06 billion).

Although it is the 12th bank listed on Vietnam stock exchange, VPB's products and services are completely different from the other traditional banks. Therefore, VPB is expected to be a new option for investors interested in banking stocks.

Real Estate Projects Update in District 10, Ho Chi Minh City

Real Estate Projects Update in District 10, Ho Chi Minh City

FCN – Expecting on a surge in earnings

Lately, RongViet Research had a discussion with representative of Fecon JSC (FCN-HSX) on the company’s outlook. The firm focuses on 3 main business pillars: (1) foundation improvement, (2) underground work and (3) infrastructure construction. Its backlog cumulative to 30 June 2017 is VND2,500 bil (including VND700 bil already recognized in H1 2017) and the firm could sign additional projects worth  VND1,000 bil for H2 2017. Given the finalization of construction work value in Q4 each year, the firm’s 1H 2017 result has just completed 25% and 31% revenue and NPAT guidance respectively.

Construction Steel Price is in a Strong Upward Trend

News on the global steel market are expecting steel prices to remain increasing strongly in the near future. China has been putting efforts into reforming the industry by cutting excess capacity as well as shutting down non-environmentally friendly factories. Moreover, the abundant force from the country’s construction demand has boosted billet and HRC prices since May. Upstream materials including iron ore, coking coal and steel scrap are inclining steadily as well. We consider this market conditions to be in favor of steel mills’ sale growth and profit margin stability.

FPT Transferred 30% of FPTRetail to Dragon Capital and VinaCapital

FPT has just announced the completed deal transferring partial ownership of FPTRetail to financial investors. Accordingly, 6 million shares, equivalent to 30% of FPTRetail whose charter capital was VND200 billion at the end of Q2 2017, were sold to funds related to Dragon Capital and VinaCapital. FPT subsequently owns 55% shares of its retail business at the moment, which means FPTRetail remains a subsidiary under FPT Corporation. Therefore, the gain from the divestment might not be recognized as an extraordinary profit until further divestments are completed by FPT.

Preliminary Assessment on the Effects of Future Index Contracts

As the continuous development of the world derivative market together with the needs of Vietnam stock market to launch new products to serve the diversified needs of investors, derivative stock market after 3 years cherished is about to be put into operation in this 2017 with the first two products are Future stock index contract and government bond future contracts. In the first phase, the trial run of these two products may not be attractive, but will create new milestones for the market.

Updated HVN-VJC performance in H1 2017

The increase in passengers has helped boost the volume of both airlines in H1 2017: VJC +22% YoY, and HVN + 6% YoY.