SMC- Focus on Improving Gross Margins

SMC Trading Investment JSC (HSX:SMC) is one of the largest firms in the business of steel product distribution. Its major activities include trading and importing various types of steel, metal goods, construction materials, interior design materials and construction equipment of all kinds, mechanical equipment, frame warehouses, factories with aluminum structures, steel and stainless steel. SMC’s distribution market share is estimated at 7.6% in 7M 2017.  Its sales volume, concentrated in the southern region, could account up to 15% of the region’s total volume.

VSH - Company report release on Sep 06, 2017

Vinh Son–Song Hinh Hydropower JSC (HSX:VSH) is a big player among the listed hydropower companies with potential for large expansion capacity in the next three years. In the short term, we highly appreciate VSH for the high operating efficiency of its two current plants, resulting to high competitiveness in the Competitive Generation Market (CGM). In the long term, the contribution from Thuong Kon Tum hydropower plant with increasing profit would drive the growth story of the company and become the main reason for its stock price to reach new heights.

Quick updates on VNR

Total inward reinsurance premium for the 1H2017 recorded VND849.4 billion (-4.3% YoY, 48% year plan). Net earned premium reached VND278 billion (-11.1% YoY, 47.1% year plan). Such slight decrease comes from the temporary slow down of the whole non-life insurance market in 1H2017. Total premium increased only 11.7% compared to 15% of 1H2016. Some segments of VNR witnessed this slow down such as:

Major Oil&Gas Projects in Vietnam - Part 2

The business results of upstream and midstream companies have been hurt at the expense of the falling oil price since middle 2014. Subsequently, we saw a significant tumble in the stock price to the bottom in many years. However, a recovery in oil price from 2016 is cutting down the pressure on the stock price and creating an attractive price level in the long term.

HSG- Anticipating a Sharp Rebound in Q4 FY2016-2017

HSG has gone through a rough quarter mainly due to the effects of the sliding HRC price on the company’s record-high inventory level in the beginning of the quarter. In addition to the poor performance, the Chairman’s announcement of ownership reduction took a toll on the share price. However, RongViet Research maintains the positive view on this stock owing to HSG’s potential in Q4 FY2016-2017. We anticipate a bounce back in their net profit because of the recent HRC price rally.

Multiple Impacts from the Amendment Proposals on VAT Regulations

The Ministry of Finance (MoF) recently proposed some changes on the VAT policy, in which fertilizer products will be subject to change from non-VAT to 5% or 10% VAT, with preference to the lower rate. The MoF expects these changes to take effect on 1 January 2019.

Major Oil&Gas Projects in Vietnam - Part 1

The business results of upstream and midstream companies have been hurt at the expense of the falling oil price since middle 2014. Subsequently, we saw a significant tumble in the stock price to the bottom in many years. However, a recovery in oil price from 2016 is cutting down the pressure on the stock price and creating an attractive price level in the long term.

Manufacturing and Consumption Could Boost GDP Growth in Q3

Yesterday, GSO announced data about Vietnam economy in eight months of 2017. Based on the data, we saw three main movements as follows:

Automobile Industry Update: The Negative Side Of Policy Changes

FDI manufacturers are reluctant to 'go or stay', domestic assembler such as THACO continue to wait for the encourage policies, while demand is still weak as consumers believe in the lower car prices in next year. All of these generates gloomy dark slices in the overall picture of the Vietnamese automobile market in 2017.

NLG - Company report release on Aug 30, 2017

Using the RNAV method, the fair value of NLG is around VND30,000, 15% higher than our previous target price in our 2017 strategy report. In recent years, NLG has maintained a stable cash dividend policy, an average of VND500 per share. Thus, compared to the closing price of VND27,850 per share on August 30, NLG’s total expected return is 9.6%. Therefore, we recommend NEUTRAL to NLG.

HBC- Taking Advantage of the Real Estate Market Expansion

The domestic construction demand has ample room for growth in most segments. Even though the housing segment is predicted to be saturated in the next few years, it could still bring about increasing construction demand. The commercial segment continues to receive great boost from the vast number of new firms’ office renting demand. The strong growth of retailing activities and the leveling up of income of the Vietnamese people indicate that the demand for lease area is still abundant. Additionally, the industrialization trend and the FDI flow in Vietnam are important factors in determining the construction demand owing to the inclining size of the projects. Moreover, the Government’s recent focus on infrastructure development has created a promising amount of work for contractors in the field and the fact that the public-private partnership is increasingly common has brought about enormous potential for private construction contractors.

Q3/2017 ETFs’ Reconstitution Forecast

2 foreign ETFs will reconstitute their portfolios in September.