ACV – 2017 AGM update

At the 2017 AGM held early today, Airports Corporation of Vietnam (ACV – Upcom) passed though the 2017 Guidance to achieve VND13,293 billion in Revenue and VND3,669 billion in profit before tax. In 1H2017, the firm estimates to record VND7286 billion (completed 55% target) and PBT VND2,298 (completed 63% plan). Regarding the 2017 capital expenditure plan, ACV would need around VND 6000 billion (USD263 million) for airport facility expansion. Some of the urgent expansion projects are clearly seen such as 2^nd Phase of Tan Son Nhat terminal and apron expansion estimated at VND 2000 billion, NoiBai airport’s Terminal 1 renovation and apron expansion worth VND1200 billion and upsizing Phu Quoc terminal’s designed capacity to 5 million passengers/year worth VND2000 billion. Given the unclear progress of finalizing strategic shareholder (20% stake sales plan: 17% from MOT and 3% from new shares issue), the majority of this expansion is likely to be funded by ACV’s operating cash flow.

PAC – Business Result Update Release on 06/28/2017

PAC’s shares have been rising steadily since the beginning of the year. Compared with the beginning of the year, PAC’s shares have increased dramatically (~71%) despite rising raw material prices, lower gross margin and declining earning’s outlook this year. It can be seen that the factors that make stock prices rise rapidly in a short time are out of the business prospects. The bull run began with the VND76 billion adjustment of PBT in 2016, followed by a change in the Board of Directors’ structure with tighter control from the company’s main state-owned shareholder (Vinachem). In particular, the continuous net bought from foreign investors has contributed significantly to the sharp increase of the stock during 1H2017.

TRA - Ambitious Plan for 2020

TRA’s chairwoman Vu Thi Thuan has made a lot of game-changing decision in the past: from the successful equitization to the investment of Hoang Liet factory, from pioneering to develop the planting area to the restructuring of the sale network. She believes at the current scale, it is time for TRA to move into the western medicine market to maintain the growth. The question is whether the selected products can harmonize with the company's distribution system and established brand.

Banking Industry Update

In June 2017, the banking sector received two important information that we believe will have a big impact on the industry’s business prospects in the last two quarters of 2017 as well as the next few years.

NNC – Price Increase will Support Q2 2017’s Earnings Results

Along with the jump in the price of sand, stone dust, a byproduct when grinding, has been gradually using as a substitute for sand in the production of fresh concrete. As a result, its price for stone dust has shown much increase. For NNC, its price for stone dust (accounts for 20% of output) in Nui Nho mine rose 33.3% to VND120,000 per ton (VAT not included) from June 10, 2017. Some other products also had some slight increase. The price adjustment might enhance gross profit of Nui Nho mine by at least 6% from Q3 2017.

CTD- Annual Guidance is Feasible

CTD has announced its 2017 AGM date after calling it off for nearly two months. The event is taking place in June 29^th while the company is going to conclude its half-year with a remarkable performance, as it can be seen the revenue and NPAT targets has been revised up, slightly higher than the initial targets announced in April. Moreover, CTD is planning to lift their foreign ownership cap, which has drawn attention as CTD’s foreign room is nearly filled up.

SHP – 2017 AGM Update

Suffering a sharp fall in 2016 business result due to strong impact from El Nino, SHP is enjoying strong recovery in 2017 with favorable hydrological condition during the first half. Below are our key notes and assessment from the company’s AGM this morning.

DPM – Positive Market Outlook for NPK Product

DPM plans to put NH3-NPK Complex into operation from 2018. We believe that the market outlook for the NPK product will be positive.

HVN – 2017 AGM Update

Although the register procedures for shareholder was rather cumbersome, the AGM of Vietnam Airline (HVN-HOSE) still scored as shareholders' inquiries on the business situation were well responded and appreciated by the BOD.

Assessment on Vietnam stock market's possibility to be upgraded in 2017 MSCI annual market classification

On 21/06, MSCI will announce the 2017 market classification results. Vietnam stock market has experienced a cheerful day as investors are very positive on the chance that Vietnam market will be upgraded. There are 3 main criteria that we will briefly review in this AP to have more assessments on this story.

KDC – Graduallly Shifting Into New Product Strategy

After announcing the divestment in snack business 3 years ago, Kido is gradually heading to provide a range of products that will serve the Vietnamese consumer from cupboard, refrigerator to freezer thanks to wide distribution channel as well as experience of BOD in F&B sector.

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.