CHP: Quick Update on its Business Performance in Q1 2017

The electricity output of Central Hydropower JSC (CHP - HSX) in the first three months of 2017 strongly reflects the effect of La Nina. According to a recent update from the company, its electricity output for Q1 2017 reached 240.5 million kWh (+202.9% YoY) and revenue reached 224.5 billion (+158.0% YoY); the average electricity selling price was 1,017 dong/ kWh (-14.8% YoY). With this revenue level, we estimate that the company’s NPAT in Q1 2017 will be VND132 billion (Q1 2016: VND8.8 billion). Therefore, CHP has already completed 60% of its profit target in 2017 during the first quarter (in the submission to the the upcoming AGM).

TTC - AGM Update

The price movements of Thanh thanh Joint Stock Company (HNX: TTC), a company specializing in producing ceramic tiles (4 million m²/year) and porcelain (1.5 million m²/year), have been less positive since the beginning of 2017, as the business results have had no growth. The sales of TTC decreased by nearly 10% in 2016, due to the increased competition from China and the overcapacity of ceramic tiles in Vietnam.  However, thanks to the optimization of production, TTC’s profit margin improved considerably.

AgroChemical Industry – Dominant Advantages from Leading Companies

In 2016, the agrochemical industry coped with challenges from negative weather, which also resulted in increased competition. Top leaders including Loc Troi and VFG witnessed positive growth, increasing by 17% and 12%, respectively, while other small companies’ revenue changed insignificantly or even declined.

Shares of Brokerage Firms: Rumors and Reality

Securities stocks outperformed the market. The trading volume of these shares also surged with high participation from foreign investors. For many of these stocks such as VND (ceiling), SHS (ceiling), SSI (+VND700/share), and BVS (+VND600/share), foreign investors accounted for more than 50% of the total volumes. Foreigners net bought VND298 billion on both the HSX and HNX. Brokerage firms were among the top 5 net bought shares including SSI (VND32 billion), VND (VND13 billion), SHS (VND4 billion), BVS (VND3billion). There are many pieces of news that are supporting brokerages’ performance...

CTD- Opportunities from its Leading Position

CTD recently held a press conference to postpone its 2017 annual general meeting initially scheduled on April 13^th 2017. Coteccons’ representative stated that the AGM is going to be postponed for approximately a month for the management board to finalise the reports and resolutions. During the press conference, CTD’s executive has announced updates about the company’s Q1 results, 2017 targets, as well as a foreign ownership cap lift, which the company will vote on in its upcoming AGM.

KSB - Stories that will Push its Stock Price

Since the ex-rights date of bonus shares (1:1), KSB has been outperforming its peers. Specifically, after the split day, KSB's shares rose 13.9% while NNC fell 2.0%, C32 decreased 5% and DHA fell by 3%. We think that the key supporting factors for this stock includes the prospects of its business in Dat Cuoc Industrial Park and its Q1 2017 earnings results.

PVS – Information about FPSO Lam Son

On 03/04/2017, PVS received notice about the termination of its contract for FPSO Lam son. FPSO Lam Son is the floating production storage and offloading vessel, which is under the operation of PTSC Asia Pacific (PTSC AP), a joint-venture between Yinson (49%) and PVS (51%). Accordingly, the termination came from the liquidation of Lam Son JOC (jointly owned by PVEP and Petronas) which conducts exploration and production activities in Thang Long – Dong Do field in Vietnam. Yinson asserted that the liquidation will occur on 30/06/2017.

DGW – Three New Stories for 2017

After officially becoming a professional market expansion service provider in Vietnam, Digiworld Corporation (DGW – HSX) is taking initial steps to eliminate its image of merely being a wholesaler of mobile phones and electronic equipment. We expect that 2017 will be the turning point for DGW in terms of its core businesses and the shape of its future prospects. Rong Viet Research believes that there are three notable stories from DGW this year that are worth paying attention to in order to have a clear perspective about this transformation.

PVS – Business Result Update Release on 03/04/2017

We project that PVS’s revenue and profit after tax will reach VND18,534 billion (-0.8% YoY) and VND856 billion (-17.6% YoY) respectively. We forecast that its 2017 EPS will be VND1,900/share, equivalent to a forward P/E of 9.3x. RongViet Research believes that 2017 will not be very positive, although it could be a turning point for a long term recovery. Therefore, this is the appropriate time for investors to follow and accumulate the stock in order to be prepositioned for positive events occurring during H2 2017. As a result, RongViet Research recommends investors to ACCUMULATE PVS’s stock in the LONG-TERM with a target price of VND 21,900/share.

PPC: Quick Update on its Business Performance in Q1 2017

Last week, RongViet Research had the opportunity to have a discussion with the representatives of PPC regarding its business performance and the divestment of subsidiaries. The company's electricity output was down but offset by a significant increase in selling price.  Moreover, the completion of its divestment also contributed positively to PPC's Q1 results.