1H Real estate sector: Stronger earnings, lower liquidity

Real estate companies were among the best performers in term of earnings growth in 1H2016. Our analyst attended yesterday a quarterly analyst meeting of Vingroup (HSX-VIC). As the largest real estate developer in the listed market, VIC has always had a strong impact on the earnings picture of the entire industry.

BMP- Upside remains for a leading building material company

The plastic pipe market becomes more and more fierce, especially when some big names such as Hoa Sen Group also "has an eye" and involve in this field. However, the core business of Binh Minh Plastics JSC (HSX: BMP), the leading company in the plastic pipe segment in the South, still record a jump.

VNR - BVPS is undervalued

Current BVPS of VNR is VND19,832, which is considered undervalued. VNR is quite different from other insurers as it diversified a large portion of its invested cap into (1) investments in other entities, (2) investments in associate, (3) entrustment investments. We will re-evaluate NAV of these investments in order to calculate a more reasonable BVPS for VNR. 

PAC - 2016H1 earnings result update

Recently, RongViet Research just had a chance to discuss with representative of Dry Cell and Storage Battery JSC (PAC–HSX) about the 2016H1 earnings result. Although PAC sales and profits have still followed the year targets, investors in the market somewhat disappointed with the modest revenue growth as well as the decline in gross profit margin  as compared to the same period last year.

Fertilizer industry – Tough 1H2016

Up till now, listed fertilizer companies have already released their semi-annual financial statements. Putting a glance on the results, an overall picture of the sector in the second quarter and the first 6 months of the year continued to not have prospered.

VKC – Growth prospect comes from the development of optical cable system

Last week, RongViet Research had a meeting with Vinh Khanh Cable Plastic Corporation. The Company operates in 3 main segments: manufacturing telecommunication cables, distributing tires, and producing plastic pipes. According to Q2/2016 result, revenue and profit after tax achieved VND 276 billion (+14.6% yoy) and VND 15 billion (+315.4% yoy) respectively. Overall, over the first 6 –month of 2016, earning after tax has dramatically grown by +206.2% yoy, equivalent about 25 billion VND.

MWG – 2017 story will lean toward BachhoaXanh

The Mobile World Investment Corporation (MWG - HSX) has announced their Q2 and 1H performance of 2016 with an impressive growth rate. Revenue and PAT of MWG in Q2 are respectively VND 10,088 bil (+87.0% yoy) and VND 417 bil (+ 87.2% yoy). To sum up in the first half, mentioned indicators are also on the breakout with + 81.1% yoy and + 83.2% yoy, equivalent to VND 19,775 bil and VND 834 bil respectively.

Pharmaceutical sector – 1H2016 earnings picture

In 1H 2016, 13 companies in the pharmaceutical industry saw a growth of 6.1% in revenue and 14.9% in NPAT. This result shown that, despite fierce competition on both Ethical channel (ETC) and Over-the-counter channel (OTC), the market still has room to grow as long as the companies are able to find a proper approach. For example, DHG decided to change its sales strategy, or DMC conducted restructuring in its product pipeline. These strategies led to negative revenue growth in 2015, but they started to bear fruit this 2016. Another example was TRA. It transitioned the main distribution channel from wholesale to retailers and achieved impressive growth and profit margin improvement. On the other hand, IMP recorded negative growth over the same period due to a slump in OTC sales and franchise business. However, with 2 plants about to received EU-GMP certification, IMP is foreseen to have an explosive growth in 2017, particularly in ETC sales.

1H2016 earnings picture: Optimistic core earnings trend despite short-term setback

Out of the first five trading days of August, VNIndex lost on four. The incident of TTF-DRH was more of a catalyst than causation for the fall of stocks on the Hochiminh and Hanoi exchanges. As the market marched towards the end of the months, divergence among stock became more apparent. Construction and Building materials stocks such as HPG, HSG, CTD, etc. and those with upbeat 1H results continued to outperform while major Oil&Gas issues like GAS, PVD and PVS extended the losses.

NNC– 2016Q2 earnings result update

It is computed that the construction material industry (including steel) had the highest NPAT growth in Q2 after the real estate industry. Among 75 companies who have released Q2 results, 60% recorded remarkable revenue growth and 77% reported impressive NPAT growth, yoy. Da Nui Nho JSC (NNC-HSX), whom we introduced in the Analyst Pinboard May 11th 2016 has as well performed an outstanding quarter.

CTG: 6M2016 business result update

As of 30 June 2016,  such criteria as loan to customers, deposit from customer as well as total assets grew 10% (ytd), 17% (ytd) and 9.1% (ytd) respectively. These figures showed great  improvements compared to last year’s corresponding period.

SRF – Company Report

Searefico JSC (SRF-HSX) is recognised among the top firms at both of its operating businesses being Mechanical & Engineering (M&E) and Industrial Refrigeration. The company’s growth, therefore can benefit from both the Construction and Food & Beverage Process market growth. Sustainable backlog and new contract amounts project 2016 to be a remarkable year for SRF’s M&E business.