Assessments on The Directive 24: Policy Makers Put Their Focuses on Growth - The Degree of Loosening Monetary Policy Has Increased

Despite a modest growth in 1Q17, the Government keeps pursuing a 6.7% GDP growth target for this year. The new directive issued at the beginning of June (24/CT-TTg) revealed some groundwork to realize that growth target. Based on the analysis below, we see that the Government set an ambitious goal for agriculture and manufacturing sector with a growth of 3.05% and 13.0%, respectively. 

NKG- Capacity is Going to Reach 1 Million tons per year

It has been widely recognized that Nam Kim Steel, despite not being one of the most long-standing steel makers, is the second largest coated steel firm in the domestic market owing to its aggressive capacity expansion in the recent years. 2017 is considered promising for NKG as the company is completing the construction of the new plant at the same time the coated steel industry has received supportive policies from the MoIT, which are Anti dumping on GI/GL products and the recent Counter-vailing duty on color coated steel.

Manufacturing sector lost growth momentum in May

Vietnam’s manufacturing PMI drifted down to its lowest level in fourteen months at 51.6 in May. The decline in the headline index was partly driven by slower increases in output and new orders. Although PMI maintained above 50 indicating an improvement of manufacturing conditions, the degree of positive sentiment dropped to a four-year low is our most concern.

HaiPhong seaport – Earnings performance faces hurdle to surge in short-term

Despite a recovery in garment and aquaculture export in 5M2017, seaport companies are struggling to find back the growth momentum both in business results and share price development.

CTF - The second largest Ford Vietnam dealer debuted on HOSE

City Auto Corp. (CTF - HOSE) is an official authorized dealer of Ford Vietnam. Its main business is trading in automobiles, supplying genuine auto spare parts and providing maintenance and repair for Ford vehicles. With 9.5% of Ford's distribution market share, CTF is Ford Vietnam's second largest dealer, second only to Ha Thanh Ford (with 12.1% of market share).

Counter-vailing Duty on Color Coated Steel- Broader Shield for the Domestic Producers

MoIT has just announced the official protection measure on color coated steel imports today. According to the determination, MoIT sets quotas for producers from China, Korea and Taiwan. Above the quotas, a 19% counter-vailing duty will be imposed, taking effect from June 15 2017.

Oil price: negative effect from Libya

Oil price on 31, May continues to fall due to the higher oil output plan from Libya. This OPEC member plans to rise its current production from 784 kbpd to 800 kbpb. Previously, oil price responded negatively after the extension of deal between OPEC and Russia. In details, OPEC and its co-partner Russia only agreed to remain the current output cut (around 1.8 mbpd) till March, 2018 while the market waited to see a higher cut.

PC1 – Company Report Release on 30/05/2017

Power Construction JSC No.1 (PC1 – HSX) is the leading domestic player in power construction and steel structure manufacturing. PC1 has also actively expanded its business to hydropower and real estate segments to utilize its resources and  diversify its business, as well as adding more growth drivers in the next few years. In short and medium term, PC1’s growth would be driven by the increasingly large investment capital in power infrastructure and the contribution from new projects in hydropower and real estate.

Q2/2017 ETFs’ Reconstitution Forecast

Db x-trackers FTSE Vietnam ETF and VanEck Market Vectors Vietnam ETF will announce their new components for Q2/2017. Using data as of 26/05/2017, RongViet Research forecast following changes to these ETFs.

NTC – Company Report Release on 29/05/2017

Short-term slowdown in 2017 profit growth would definitely be a good opportunity to invest in the stock with regard to growth catalyst from NTU3 expansion in late 2017. Located side by side with NTU2, NTU3 expects to carry on the fast occupancy rate of NTU2 (5-6 years) since Binh Duong continued to receive massive USD1.5 bn of registered FDI in 5M2017. Cash-rich business model allows NTC to develop new industrial park with little need to access bank loan or raise additional capital. Therefore, shareholder interest is protected and maximizing. By using the Revalued Net Asset Value (RNAV) valuation method, we initiate a “BUY” recommendation on the stock at the “2- year target price” of VND73,8000.

FPT – Company Report Release on 26/05/2017

FPT Corporation JSC (FPT-HSX) has been among RongViet Research’s favorite stock list owing to its fundamental aspects. FPT has the leader position in all markets it operates in, namely telecommunication, IT outsourcing and high-tech device distribution & retailing, which allows it to record sustainable growth. We expect Distribution & Retail to have opposing results regarding growth in 2017 while Telecom (FOX) and software will solidly remain to be the two major contributors to the corporation’s profit. FPT also possesses a solid financial strength including a strong operating cash flow and a decent cash holding, which allow the company to offer a consistent cash dividend policy.

FAQ for Future Contract in the Vietnam Stock Market

Future contract of share indexes (HNX30 and VN30) will be available for trading early this June. This article will address some FAQs regarding the very new financial instrument in the Vietnam stock market.