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.

PPC: Quick Update on its Business Performance in Q1 2017

Last week, RongViet Research had an opportunity to discuss with representatives of Pha Lai Thermal Power (PPC - HSX) about the business performance and the divestment in subsidiaries. The electricity output was down but offset by a significant increase in selling price and the completion of divestment also contributed positively to PPC's 1Q results.

DXG – 2017 AGM Notes

We joined DXG’s 2017 annual general meeting today.

For 2016, DXG’s revenue and NPAT reached VND 2,506 billion (+80% YoY) and VND537 billion (+60% YoY) respectively, which were 14% and 6% higher than planned. The real estate business contributed to 59% of its total revenue, equivalent to VND1,485 billion and double that of 2015. Meanwhile, revenue from the brokerage services segment grew a mere 8.6%YoY or VND 815 billion.

STK – 2017 Annual General Meeting Update: STK plans to expand to high profit-margin markets

STK’s 2017 Business Plan: Developing its Korea and Japan markets, along with raising the contribution of recycled fibers to its revenue.

Food and Beverages: Some Watch-list Stocks for 2017 AGMs

The beverage industry provides many investment opportunities, thus, RongViet Research believes that market sentiment will still be positive this year. In addition to some remarkable stories like VNM, SAB and BHN, other small cap companies present interesting opportunities. April is highly known as the pivotal time for shareholder meetings in 2017. Below are some stocks in RongViet Research’s watch-list this year.

CAV – Business Efficiency Will Continue to Improve

Last week, RongViet Research had a meeting with Vietnam Electric Cable Corporation (CAV – HSX) to receive updated information about its core business activities and future prospects. The company will primarily focus on production expansion in the near future.  Moreover, forming a closed production chain will also create added value for the company in the long-run.

Macro Update

CPI in March 2017 increased by 0.21% MoM and 4.65% YoY, and increased by an average of 4.96% YoY during the first quarter of 2017. Although CPI is usually lower in March due to decreased consumption after Tet, March CPI still increased due to the administrative proactive healthcare and educational services price regulation.

GMD – What to Expect in 2017

In 2016, Gemadept (GMD-HSX) recorded a 4.5%YoY increase in revenue and EBITDA reached VND980 billion (unchanged to last year). These results are considered to be rather positive in the face of increased competition in the Northern seaport sector caused by the decline in cargo growth and declining frozen cargoes (down 2/3 compared to that of 2015).

C32 - Update on the Agenda of its 2017 AGM

Today, Construction Investment Corporation 3-2 (HSX: C32) has just unveiled the agenda for its annual shareholder meeting this year, which has some noteworthy points.

In addition to a cash dividend ratio of 24% for 2016 as usual, C32 plans to pay an additional 10% stock dividend to raise its charter capital. Besides, C32 will resubmit the ESOP’s plan but at a lower rate (only 2%) compared to the previous year (5%) and a transfer time limitation of 2 years.

NKG- Proving its Capability

NKG is holding its AGM on March 31^st to make important decisions regarding 2016 profit distribution, 2017 guidance and other activities. Among NKG’s proposed resolutions, the private placement may draw attention, as the company already concluded two deals during 2016, receiving over VND430 billion to invest in the new plant’s machinery.