Capital Strongly Flew into Penny Stocks in July

In July, penny stocks appeared attractive as according to our statistics, 127 out of 236 stocks valued lower than VND10,000, outperformed the market. Besides, stocks enjoying three-digit growth rates in July included HAI, HAR, SPI, and CMC which are also penny stocks.

PTB – Some Updates on Phu Cat Wood Processing Plant

Phu Tai Corporation (HSX: PTB) has put the Phase 1 of Phu Cat wood processing plant already into operation on August 1st.

Effects of New Tariff on Imported DAP Fertilizer

Recently, the Ministry of Industry and Trade has announced application of tariff amounting to VND1,855,790/ton on imported DAP fertilizer. Given the latest market price of Chinese DAP fertilizer (which accounts for 80% of imported DAP fertilizer) at VND9,100/kg, the product price may increase by 20% to VND11,000/kg. Looking at current domestic DAP prices of around VND9,500/kg, we expect a stronger consumption for domestic DAP products.

Real estate result updates for Q2 2017_Part 2

Real estate result updates for Q2 2017_Part 2

Reviewing Q2 2017 Business Results of Listed Companies

Until August 1^st, 612 listed companies on HSX and HNX exchanges has announce their Q2 business result. While the results of some sectors are influenced by a single stock like BVH (Insurance), PVD (Oi & Gas), VJC (Travel & Leisure), stocks in other sectors has displayed a clear trend.

Real estate result updates for Q2 2017

H1 business results of almost real estate companies have been revealed. Contrary to Dat Xanh (DXG) and Novaland (NVL), Vingroup (VIC), Khang Dien (KDH) and Nam Long (NLG) continued to have solid revenue from the hand-over of their core projects. However, the NPAT growth was diversified among these companies. While NVL recorded negative number, NLG and KDH saw an increase in NPAT thanks to financial incomes. In H2 2017, we expect that continuous deliveries in completed projects will encourage core business result, especially Dat Xanh and Nam Long.

Vietnam petroleum shipping stocks – H1 2017 Earnings analysis

Vietnam shipping company performance continued to be plagued by prolonged weak demand, which was compounded by H1 2017 fuel cost increase. On average, Vietnam petroleum shipping stocks posted 15% increase in revenue but 22% decline in the bottom line over the first six months of 2017.

The Health of Manufacturing Sector is Still Good

Vietnam’s manufacturing PMI drifted down to 51.7 in July from 52.5 in June. The decline in the headline index was partly driven by slower increases in output and new orders. This is also the case with new export orders, which is in line with our observations in recent import growths (3mma import growth has been stable at 31% in July 2017). 

CTD Result Update – Company Report Release on 31/07/2017

RongViet Research has just released Q2 2017 Result Update Report on Coteccons Construction JSC (CTD-HSX) with the following overview and recommendation:

"CTD is an outstanding construction contractor in the domestic market and the company has proven the power to win the largest bids as well as the internal resources to satisfy clients’ demand in terms of design capacity and progress. Despite the market concerns over the peaking housing sector, we anticipate a sustainable growth in other segments of the real estate market including industrial, commercial and infrastructure, which will manage to keep the construction demand growth. Subsequently, as the leading firm, CTD is able to develop new growth drivers as well as to skim the most profitable jobs in the market. The company is going to adapt to a new revenue structure, which allows them to diversify their portfolio and maintain a decent growth rates over the next three-year period.

DRC - “Bias Segment is Slowing Down While Radial Segment is Improving”

Da Nang Rubber JSC (HSX: DRC) has disclosed its the preliminary Q2 results with revenue of VND864 billion and NPAT of VND35 billion, with respective decrease of 2.7% and 68.5% over the prior year results.

BMI - Quick Updates on H1 2017 Results

BMI recently upload a preliminary report on its H1 2017 earnings. The result is quite in line with FY2017 business plan.

CTD- Gradual Change for a Sustainable Growth

Coteccons Construction JSC (CTD) performed well in Q2 with VND6,183 billion revenue (+24% YoY) and VND412 billion NPAT (+16% YoY). Contracts signed since the beginning of 2017 was nearly VND14,300 billion, boosting the total backlog at the end of Q2 to over VND26,000, 17% higher YoY.

It is evident that CTD is increasingly dependent on the housing market. Contribution from the residential segment accounted for over 70% of CTD’s revenue in H1 2017, while we expect some stagnation in the number of new housing projects in the long term.  Moreover, we also expect the leading firm in the industry to be a pioneer in diversifying its backlogs toward other market segments including commercial and office buildings, industrials and even infrastructure. We notice several signals of CTD reforming their revenue structures, one of which is the industrial segment.