PAC’s Business Result Update: In line with expectation

Dry Cell & Storage Battery JSC (PAC – HSX) announced its business results in Q22017 last week, which are in line with our forecasts in the latest report (28/06/2017). To be specific, PAC achieved an increase of 14.7% YoY in net revenue (~VND 680 billion), while net profit was nearly double the same period last year (~VND 56 billion). In the first half of 2017, the company recorded a 20.8% growth in net revenue and a 53.9% growth in net profit, EPS trailing was 4,277 dong, PE trailing ~11.7x.

CTF - The Enormous Amount Of Capital Required for The Strategic Plans

After the recent meeting with the company’s representatives, RongViet Research would like to give investors some updates on the business activities of City Auto JSC (HSX: CTF).

IMP - When Stock Prices Moves Ahead of the Earnings

A high P/E ratio always requires corresponding earnings growth in the future. In case of DHG, DMC and TRA, we think that paying a high P/E for these stocks at the moment is quite risky. It would take a lot more time to have a proper assessment of their earnings outlook: whether strategic partners can deliver strong growth for DHG and DMC, and whether TRA can start off on the right foot as the company expands to western medicine area. Meanwhile, the earnings prospect of IMP is clearer as EU-GMP factories will start contribute to the total revenue in 2H of this year, and the market will have a bit of information to justify that prospect. Therefore, among top 4 pharmaceutical stocks in listed market, IMP is our favorite.

NLG – 1H2017 Results Update

NLG released Q2 results with positive signal. Revenue and NPAT-MI was VND1,006 billion (+45% YoY) and VND289 billion (+237% YoY) respectively, mostly due to the revaluation of Nguyen Son project. NLG and Japanese partners will co-develop this project, which revenue and net before-tax profit is estimated at VND1,665 billion and VND890 billion, respectively.  However, NLG only recorded 50% gain and the remaining will be recorded according to the delivery schedule in the period 2018-2020.

VSH – 2017 EGM Update

The disagreement between major shareholders during VSH’s 2017 AGM in May has resulted in no document being approved and some certain concerns among investors about how it could affect the progress of Thuong Kon Tum hydropower project, which is having far enough trouble with its Chinese contractor (Hydrochina Huadong Corporation). Fortunately, the negotiation between two biggest shareholders including REE and GENCO 3 prior to this Extraordinary General Meeting (EGM) has brought them on the same page and contributed to the success of the EGM. Below are 4 key contents that the meeting has approved:

Steel Industry Update – Thematic Report Release on 19/07/2017

Hoa Sen Group JSC (HSG-HSX), Nam Kim Group JSC (NKG-HSX) and Hoa Phat Group JSC (HPG-HSX) are the steel stocks that have been on the conviction list of RongViet Research because of their impressive business performances. The steel industry has been growing remarkably in recently owing to the strong construction demand in the domestic market as well as the effective trade policies. Being the leading firms in the industry with aggressive expansion plan, HSG, NKG and HPG are capable of make full use of the market favours in order to boost their business results further. Therefore, RongViet Research considers them as attractive in terms of valuation and we recommend BUYING the three stocks in the INTERMEDIATE TERM.

The Automobile Market: Be Optimistic In the Second Half of The Year

According to the latest report from the Automobile Manufacturers Association of Vietnam (VAMA), the total automobile market sales in the first half of the year decreased 1% over the same period in 2016.

NTC – 1H2017 earnings release comment

Nam Tan Uyen IP (NTC – Upcom) has announced its Q2 result with Revenue and NPAT recording respective 20% and 201% YoY growth. For the 1H2017, NTC recorded VND75 bil in net profit (increasing by 117% YoY and completing 138% of its 2017 guidance). The impressive result is thanks to continuous strong demand for industrial land and lower than expected financial expense as Land use right (LUR) payment turns out less than initially calculated.

A Summary of Regional Aviation Markets - Malaysia Market

In recent days, the Vietnam aviation industry heats up with the intention to join the industry of Vietstar Airline, Air Asia, and FLC’s Viet Bamboo Airline. The potential participating of new players promises a higher competitive environment in the industry, which currently finds itself with only three main airlines: Vietnam Airlines, VietJet Air and Jetstar Pacific. To have a thorough view about this matter, RongViet Research would like to review the competition of other markets in the region.

TVT – Eyes on Fabric Segment

TVT ranking among largest textile companies operates in yarn, fabric and garment segments, with the current capacity of 12K tons yarn, 47mn meters fabric and 5 million apparel units.

LTG - Roadshow highlights

Loc Troi will list on UPCOM on 24/07/2017 with the ticker LTG. The initial listing price will be VND55,000/share