PTB – Rising from tough times

PTB is described as a prominent story as RongViet Research mentioned in early 2016. In 1H2016, PTB’s earnings results performed in compline with our expectation, in which, revenue and NPAT grew by 25% and 53% (yoy), respectively. However, taking a deeper look into wooden products exports and political upheaval in main stone products’ market (Turkey), some investors raise concerns about PTB’s growth. Based on below analysis, we suppose that PTB would likely maintain and support its strengths in order to achieve double-digit growth year after year.

IMP – Company Report

IMP is the third largest pharmaceutical company in terms of market capitalization and revenue, with business concept that focuses on manufacturing high quality products. Because sales from ETC (Ethical channel) accounted for a big proportion of total revenue before 2013, the business in recent years was significantly affected by Circular No. 01/2012/TTLT BYT-BTC guiding the drugs bidding procurement in the medical facilities. However, as its 2 plants are about to qualified for EU-GMP standard at the end of this year, IMP expects to see ETC sales bounce back strongly, starting in 2017.

Vinconship JSC (VSC-HSX) – Vip Greeport generates profit earlier than expected

Vinconship JSC (VSC-HSX) is one of the leading domestic logistics firm with established position in Northern Vietnam. The firm bases in Hai Phong - regarded as a main trade gateway in the North. To continue RongViet Research’s pinboard series on Seaport and logistics sector, we today would like to give some updates on the firm’s 2016 business results and 2017 prospects.     

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.