PNJ – 2017 AGM Updates

We estimate that PNJ's FY2017 sales will come in at VND10,222 billion (+ 19.3% YoY) and that its EAT will be VND629.5 billion (+ 39.2% YoY), corresponding to EPS of VND5,932. Therefore, we revise our target price for PNJ to 97,000 VND/share (up 6.7% compared to the recommended price in the 2017 Strategic Report).

BFC – 2017 AGM Update

BFC had impressive performance in 2016, as its PAT increased by 21%, while the majority of fertilizer companies witnessed a slowdown in growth or even negative growth rates.

DHA - AGM Update

Hoa An Joint Stock Company (HSX - DHA) has more advantageous compared to its peers since it owns 3 quarries that have a long exploitation period (over 10 years) and ample reserves. The quarries of DHA still have strong prospects due to the demand for stone in western provinces, although these quarries are not not in prime locations like Tan Dong Hiep or Nui Nho mines.

PVS – Recommend BUY in LONG-TERM

Evaluate the impacts from the contract termination before term between PTSC AP (own and operate FPSO Lam Son - joint venture between PVS and Yinson) and Lam Son JOC, RongViet Research adjusts the forecasts for revenue and profit after tax of 2017 to be VND 17,995 bil (-3.7% YoY) and VND 772 bil (-24.4% YoY). Even though the results will deviate and fluctuate through years, the issue of FPSO Lam Son will not significantly impact on the core business of PVS. Therefore, RongViet Research maintained the target price for PVS at VND 21,900/share from the report on 03/04/2017. We continue to recommend BUY in LONG-TERM.

PMC - 2017 AGM Update

PMC is considered one of the few pharmaceutical companies who are able to maintain a remarkable profitability but has always been trading at a lower P/E compared to its industry peers such as DHG, IMP and DMC. This could have resulted from the market’s concern about the company’s room for growth as its factory has been running at full capacity. Meanwhile, the new non-betalactam factory of the European PIC/S standard has yet to start construction because the company has to wait until 2018 or 2019 to receive the land in District 9 (HCMC), not mentioning the construction might take 2 years. Until then, PMC still largely depends on the stabilized revenue from its traditional products such as eye-drops (contributes 20% revenue), bactericidal product Povidine (contributes 9-10% revenue) and liver support supplement B.A.R (contributes 9-10% revenue).

PPC: Business Update

We had a short call with Pha Lai Thermal Power Jsc. (HSX: PPC) to ask about the company’s plan to pay-off its JPY-denominated loans prior to the maturity date. We learnt that the payment will take place over a period of 3 years (2017 – 2019). The company will pay JPY 16 billion in Apr 2017. Based on the exchange rate as of the 31^st of March 2017, we estimated that the realized FX loss for this amount is more than VND121 billion. The remaining outstanding balance will be paid at an even higher amount in 2018 and 2019. Since 2017, most of PPC’s income will be mainly be contributed by electric generation, as well as from other investments in the power sector (associates as well as financial investments).

CDN - Q12017 Earnings Results

CDN’s Q1 2017 revenue and NPAT reached VND146.68 billion (+11.1% YoY) and VND32.63 billion (+31.8%) respectively, achieving 24% and 26% of its 2017 business plan.

VJC - 2017 AGM Update: Out of the Blue

Well-known for its unique branding strategies, VietJet Aviation JSC (VJC-HOSE) has once again found a way to stand out when it organized the AGM today. Instead of booking a luxury hall or hotel like other companies, the airline chose Saigon Opera House, one of the most famous attractions with over 100 years of history to hold its meeting. The shareholders were welcomed with favorite songs from MLTR’s performance in the Sky Connection, an inspirational music event for Vietnam Youth hosted by VJC in late 2016.

 “Only by giving me your energy

With a love so true you took me out of the blue” (Out of the Blue- song by Michael Learns To Rock)

As the last song came to an end, the AGM begins.

GAS – Long-term Prospects from Future Investments

PetroVietnam Gas Joint Stock Corporation (GAS – HSX) approved its plan for 2017 during its recent annual general meeting.  RongViet Research believes that the plan is conservative and that the company’s long-term prospects are positive, given its major investment projects.  Moreover, oil prices have also been recovering and are beginning to stabilize at around $52-57/barrel after the strong surge in 2016.

DHG - When the catalyst for its stock price gradually materializes

Q1/2017 business results: DHG's revenue and NPAT are estimated to be VND882 billion (+ 8%yoy) and VND179 billion (+15%yoy), respectively. For the full year of 2017, RongViet Research still maintains its NPAT forecast of VND780 billion, translating to an EPS of VND7,835. Thanks to this catalyst, DHG’s price has surpassed our valuation, and the stock is currently trading at historical high P/E of 17.1 times. Although the catalyst’s effect seems to have cooled down recently, it can still rise again at any time until the day the FOL is actually lifted. The market can continue to speculate on this catalyst, but the core business surely will not change in a day or two.

PNJ - Q1 2017 Earnings Results

Today, PNJ quickly reached the ceiling price in the afternoon session, with the highest matching volume in a year, following the positive information of its Q1 results. Accordingly, Q1 revenue grew 34.5% and EBT jumped 104.4% over the same period. Excluding the two extraordinary items in the first quarter of 2016 (the provision for investment in Dong A Bank - VND84.5 billion and the transfer of land at Thu Khoa Huan street (EBT of 40 billion)), the profit of PNJ still rose 58%.

Q1/2017 Export and Import Updates

In Q1 2017, the total import and export turnover was $91.21 billion, a 19.9% YoY increase.The total export turnover in Q1/2017 was $44.64 billion, representing a 15.1% YoY increase. The export turnover for the 10 largest groups was $31.76 billion in Q1 2017, accounting for 71.1% of total exports. Most of the components in the 10 largest groups attained positive growth, with the exception of cellphones and accessories, which experienced a 6.1% decline in growth. The area with the strongest growth included computers, electronics and accessories, with the total quarterly export turnover reaching $5.52 billion, 47.8% growth. We think that the abnormal growth in this group is due to the participation of the Samsung Electronics HCMC CE Complex project, which began operating in the middle of 2016. Additionally, the decrease in cellphone exports is also linked to Samsung’s operations, and the release of Samsung Galaxy S8 will assist the recovery of this group.