FPT Result Update – Company Report Release on 29/11/2017

RongViet Research has just released Q3 2017 Result Update Report on FPT Corporation JSC (HSX:FPT) with the following overview and recommendation:

We remain optimistic on the stable growth achieved by FPT’s two core businesses, Technology and Telecom, which was discussed in our previous FPT Company Report. The divestments can be a strong catalyst for FPT share price in the short term as the deals are successfully concluding as expected. In the long term, regarding FPT valuation, the company’s FCFF analysis shows a remarkable stability in cash generation and P/E ratio for 2018 can be revised owing to the higher contribution of Telecom and Technology, which have P/Es that are higher than those of the divested businesses.

Quick Updates on VNR’s Business Performance

Reinsurance market was unfavorable in 3rd quarter, which caused some difficulties for VNR.

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