PPC: Quick Update on its Business Performance in Q1 2017

Last week, RongViet Research had an opportunity to discuss with representatives of Pha Lai Thermal Power (PPC - HSX) about the business performance and the divestment in subsidiaries. The electricity output was down but offset by a significant increase in selling price and the completion of divestment also contributed positively to PPC's 1Q results.

DXG – 2017 AGM Notes

We joined DXG’s 2017 annual general meeting today.

For 2016, DXG’s revenue and NPAT reached VND 2,506 billion (+80% YoY) and VND537 billion (+60% YoY) respectively, which were 14% and 6% higher than planned. The real estate business contributed to 59% of its total revenue, equivalent to VND1,485 billion and double that of 2015. Meanwhile, revenue from the brokerage services segment grew a mere 8.6%YoY or VND 815 billion.

STK – 2017 Annual General Meeting Update: STK plans to expand to high profit-margin markets

STK’s 2017 Business Plan: Developing its Korea and Japan markets, along with raising the contribution of recycled fibers to its revenue.

Food and Beverages: Some Watch-list Stocks for 2017 AGMs

The beverage industry provides many investment opportunities, thus, RongViet Research believes that market sentiment will still be positive this year. In addition to some remarkable stories like VNM, SAB and BHN, other small cap companies present interesting opportunities. April is highly known as the pivotal time for shareholder meetings in 2017. Below are some stocks in RongViet Research’s watch-list this year.

CAV – Business Efficiency Will Continue to Improve

Last week, RongViet Research had a meeting with Vietnam Electric Cable Corporation (CAV – HSX) to receive updated information about its core business activities and future prospects. The company will primarily focus on production expansion in the near future.  Moreover, forming a closed production chain will also create added value for the company in the long-run.

Macro Update

CPI in March 2017 increased by 0.21% MoM and 4.65% YoY, and increased by an average of 4.96% YoY during the first quarter of 2017. Although CPI is usually lower in March due to decreased consumption after Tet, March CPI still increased due to the administrative proactive healthcare and educational services price regulation.

GMD – What to Expect in 2017

In 2016, Gemadept (GMD-HSX) recorded a 4.5%YoY increase in revenue and EBITDA reached VND980 billion (unchanged to last year). These results are considered to be rather positive in the face of increased competition in the Northern seaport sector caused by the decline in cargo growth and declining frozen cargoes (down 2/3 compared to that of 2015).

C32 - Update on the Agenda of its 2017 AGM

Today, Construction Investment Corporation 3-2 (HSX: C32) has just unveiled the agenda for its annual shareholder meeting this year, which has some noteworthy points.

In addition to a cash dividend ratio of 24% for 2016 as usual, C32 plans to pay an additional 10% stock dividend to raise its charter capital. Besides, C32 will resubmit the ESOP’s plan but at a lower rate (only 2%) compared to the previous year (5%) and a transfer time limitation of 2 years.

NKG- Proving its Capability

NKG is holding its AGM on March 31^st to make important decisions regarding 2016 profit distribution, 2017 guidance and other activities. Among NKG’s proposed resolutions, the private placement may draw attention, as the company already concluded two deals during 2016, receiving over VND430 billion to invest in the new plant’s machinery.  

Bangladesh Textile Industry – The Ability to Draw Orders Is Still High

Investors who are interested in textile stocks have typically heard about the risk of orders shifting from Vietnam to Bangladesh. This concern is reasonable given that Bangladesh has obvious advantages of low labor costs and tariff initiatives. In this article, we will compare Bangladesh’s advantages and disadvantages to Vietnam.

Opportunities for Insurance Stocks in 2017

The recent movement of VNIndex is on the back of consumer stocks such as MSN, VNM and banking, real estate and securities stocks. BVH is another large cap that usually supports the VNIndex. However, insurance stock as a whole has not performed well. Evidently, insurance index has lost 3.9% in one month.

On the contrast to this fact, we still believe the insurance sector will have another positive year. Remind that insurers survived through tough times and began to recover from 2012, and followed through with double digit growth in 2014.  Vietnam’s insurance market is undeniably poised for rapid growth thanks to the country’s healthy economic growth, heavy investment in infrastructure and increased consumption of the private sector. Hereunder is 5 reasons to explain this viewpoint:

TCM – Quick Update

While the market witnessed an exciting session, TCM decreased for four consecutive days, following the strong advance it experienced since the end of January. We hold the view that the decline was due to short-term profit taking, because TCM’s operating results have been quite favorable.