LHG – Business update

To recap, LHG is operating two industrial parks named Long Hau 1 (LH1) and Long Hau 2 (LH2) with total area of 250ha in Long An province. As stated in FY2016 Annual report, the firm has 15ha of remaining land for lease regarding FY2017. Average lease rate is ranging from USD90-95 per sqm and is likely to increase further with its shrinking supply. At average annual absorption 12-15ha so far, LHG’s target to lease all remaining 15ha this year is highly achievable with continuous strong FDI inflow to Vietnam. Typical lease contract at LHG is 50 years at one-time payment and the firm would recognize revenue when receiving over 90% of lease payment. Previously, lease payment duration may take up to 3 years but shortened to within a year now thanks to more financially capable clients and better economic conditions.

VOC-Taking Advantage of Owning the Famous Cooking Oil Manufacturers

Vocarimex is a manufacturer of cooking oil as well as raw oil supplier in Vietnam. The main cooking oil products are Voca Sesame oil, Soby soybean oil, cooking oil Voca, Ruby oil, Sun Go oil.

SBV - Small business, high market share in the niche market

Siam Brother is a well-known brand name (over 50 years) in producing and trading rope in Thailand, and has the first factory in Vietnam from 1995. Till now, SBV owns 40% of market share in this industry, much higher than its big competitors like Penro (Malaysia brand – 13% market share) and Hiep Thanh (6%). Thanks to its leading position, price of SBV’s products is about 25% higher compared to its peers, and the Company is a price marker in this segment.  

HPG’s Real Estate Sector: Expected to Contribute More to 2017-2018 Growth

As Hai Duong Steel Complex has been operating at full capacity, HPG’s most contributing business can be seen to have little room for growth. As a result, it has been evident that HPG is boosting other businesses for growth drivers in 2017 and 2018, prior to Dung Quat Complex’s operation in early 2019. HPG’s real estate business has carried out several large projects, which are expected to contribute to the group’s results in the near future.

STK – Company Update Report on 09/06/2017

Considering the leading position of STK in the yarn industry in Vietnam, the company has benefited greatly from the recovery of textile and garment demand. STK's Q1 business results recorded revenue and PAT growth rates of 70.6% and 764.1% YoY, respectively. These figures were impressive partly when we compare them with 2016 - a bad year for STK as many unexpected problems occur. In 2016, STK's PAT dropped sharply by nearly 60% to around VND28.5 billion, which is the lowest level since 2009.

HDC – Company update

RongViet research just had a meeting with HDC’s representative to update on the Company’s business activities. With nearly 83% of net revenue contributed from real estate development, this segment will continue to be a key driver of HDC’s earnings in 2017. For the year 2017, HDC plans their net revenue and PBT at VND605 bil (+26%) and VND80 bil (+20%) respectively. In which, the real estate development segment will contribute 73% of net revenue and 84% of PBT. Binh Gia apartments and Go Sao residential area will be the key source of revenue and earnings.

Vietnamese Auto Sales in the First Five Months of 2017

As expected, the situation of automobile consumption is becoming gloomy, even though automobile sales in May has recovered slightly after a plunge in May. The number of imported cars continued increasing, especially cars from Indonesia and Thailand, although tariffs on imported cars from ASEAN countries will be fully removed in the next 6 months.

PHR – A New Growth Story

The price PHR stock has moved up by 38% over the last month thanks to the supporting information about an abnormal return from the transfer of 700 hectares of land to the Vietnam – Singapore Industrial Park (VSIP 3). Below are some brief assessments of RongViet Research on the prospect of the company in 2017 – 2018 and in the longer term.

PNJ - Company Update Release

We maintain positive outlook on PNJ's long term business prospects with improved revenue and gross margin. Financial expenses are estimated to be lower than 2016 as the Company has made provision for investments in Dong A Bank and a lower outstanding loan when PNJ has additional cash from issuance. We estimate that net sales and EAT in 2017 could reach VND11,399 and 736 billion respectively, equivalent to EPS of VND6,796. Therefore, we recommend investors to HOLD this stock for LONG TERM with the target price of 114,000 dong/share.

PTB - Company Update Release on 06 June 2017

After a 20% bonus share in early June 2017, PTB will continue to issue additional shares to raise capital for its expansion on stone and wood business in Khanh Hoa and Binh Dinh. This is the third consecutive year that PTB raised capital through additional issuance. However, we see that PTB's EPS has steadily grown annually with an average of 14% in 2014-2016. In this report, we revised down our revenue forecast due to a slower growth in the automotive retail segment. Conversely, there is a slight increase in PAT due to preferential tariffs for Dong Nai and Hung Yen stone processing factories. Revenue and PAT in 2017 are estimated at VND4,386 billion and VND343 billion, respectively, equivalent to EPS of VND11,897. Based on the three valuation methods of FCFF, PE and SOTP, we recommend an ACCUMULATE rating on PTB with a target price of 128,800 VND/share.

DIG - Cash Flow Expect to Improve by Divesting from Investment and Real Estate

DIG is one of the few real estate stocks that has seen good gains today. After the third consecutive increase, DIG has increased about 9%. If calculating from the price around 8,000 dong per share earlier this year, the stock was rally over 81%. We think the information that State owner will divest from DIG as well as the information that DIG will divest from some major real estate projects and other investments are the catalyst for the strong performance of the stock.

TAC - A New Milestone

Tuong An Vegetable Oil JSC (TAC) operates in cooking oil production sector with well-known products such as Van Tho, Olita, Ngon, Margarine. Currently, Tuong An is running 2 plants with total capacity of 240,000 ton per year in Ba Ria - Vung Tau and Nghe An.