MWG – Optimistic Long-term Prospects

The company’s recent Q3 2016 business results continued to display MWG’s leading position in the retail industry, as well as its unprecedented growth rates. The DienmayXanh store chain (DMX) still makes the largest contribution to MWG’s growth, and BachhoaXanh(BHX) has also been successful in its initial expansion efforts. BHX has received a positive response from the market, and this will be a transformative step for MWG in the future.

PC1: A Well-known and Experienced Name in Power Transmission and Distribution Network Construction

Tomorrow is the first trading day of the Power Construction Jsc. No1’s stock, named PC1, at an initiated price of VND 36,000 per share. In today’s analyst pinboard, we would like to provide some information related to this company’s business to our clients.

How Have Oil Shipping Stocks Performed?

Oil shippers PVT and VTO’s businesses not only shielded the impact of plunging oil prices, but also expanded compared to other struggling upstream oil&gas partners.  9M2016 results of PVT and VTO saw annual growth of 51% and 43%, respectively. In fact, the low oil price environment has driven up industrial and personal consumption, which in the end means more jobs for oil tankers. At the same time, shipping firm’s costs with fuel expenses of 35-40% of its total costs have a chance to be slashed.

HBC: Improved Profitability

While most construction companies recognise the majority of their income in the fourth quarter, HBC’s 9M2016 business results have already recorded remarkable growth year-over-year. The construction business remained the key growth driver for HBC as performances from other segments such as real estates and industrial park were in line with our expectation. Year-to-date, HBC has completed 98% of its revenue target and exceeded the NPAT target by 27%. Gross margin is targeted at under 10%, which is a great improvement compared to 2015’s 5.8%. 9M2016’s gross margin is 10.3%, better than HBC’s expectation which was around 7.5%.

NLG – Hitting the “sweet spot”

Rong Viet Research just had a meeting with the representative of Nam Long Investment Corporation. Although the real estate market has been warned of oversupply, tightened credit, and duty on second homes, NLG remains one of the best sellers in the market who have continuously launched new projects. 

Seaport sector - Hai Phong seaport operators’ 9M2016 performance

As anticipated, Hai Phong seaport operators’ 9M2016 earnings faced difficulty achieving the high growth rate of last year’s same period due to a fall in frozen cargo revenue and rising seaport supply (VipGreen port, expanding Nam Hai and Dinh Vu port). Noticeably, slower than expected growth of cargo has fueled fiercer competition among seaports.

An election of extremes - How macro analyst view the result

From a macro perspective, the possible effects of Trump victory include: (1) Negative impacts on China’s trade and GDP growth; (2) Challenges ahead for free trade deals and globalization; (3) Increased infrastructure investment can poised to the recovery of some basic metal prices; (4) Short-term negative impacts on financial markets; (5) December Fed rate hike is likely delayed.

VNS – Brief update released on 08/11/2016

Regarding stock price valuation, we believe VNS is undervalued compared to other companies with similar performance and the market as a whole. However, under the current circumstance where competition is fierce and going to remain so in the future, we made a MONITOR recommendation for VNS’s stock.

PHR’s 2016 Earnings Estimate

In recent times, natural rubber is one of the most interesting industries which drew the attention of many investors when natural rubber prices recently experienced a significant increase. Below is a brief update and some assessments for 2016 and 2017 of Phuoc Hoa Rubber JSC (PHR – HSX).

Oil & Gas – Construction Companies Cling onto Long-term Prospects (Part 3)

At the present time, construction and manufacturing companies in the oil & gas industry have already announced the business results for Q3 2016. As expected, published figures continue to demonstrate the downtrend of the oil & gas industry over the last 2 years. Accordingly, revenue and profit of 4 mentioned companies which are PVS, PXS, PVB and PXT, all experienced deterioration compared to the same period last year. In 2017, construction companies in the oil & gas industry could not benefit from the initiation of several major energy projects due to the early phase of construction. However, long-term prospects for 2018 and onward could be future catalysts for the growth and turn-around of such companies after a long period of “pessimistic” business results.

HSG: Coated Steel Business to Remain Profitable

HSG’s market share remained around 38% for coated steel sheets and 22% for steel pipes, the highest among Vietnamese producers, followed by NKG (13.8%). HSG is also increasing its domestic proportion, which reached two-thirds of their total sales in the last financial year. The strategy is considered appropriate, as HSG’s current power in the domestic market is offering stronger demand growth and ASP compared to the fierce competition and AD risks in the export markets.

Oil & Gas – Construction Companies Cling onto Long-term Prospects (Part 2)

At the present time, construction and manufacturing companies in the oil & gas industry have already announced the business results for Q3 2016. As expected, published figures continue to demonstrate the downtrend of the oil & gas industry over the last 2 years. Accordingly, revenue and profit of 4 mentioned companies which are PVS, PXS, PVB and PXT, all experienced deterioration compared to the same period last year. In 2017, construction companies in the oil & gas industry could not benefit from the initiation of several major energy projects due to the early phase of construction. However, long-term prospects for 2018 and onward could be future catalysts for the growth and turn-around of such companies after a long period of “pessimistic” business results.