Commodity market: Steel price.

In the previous 10/06/2016 analyst pinboard, we had a chance to report about commodity market. This week, we will look deeper in the steel market and its effect on firm in the steel industry. From 2015 to 2016, urbanization and economy recovery has helped real estate market revive; therefore, giving building material price a boost and especially steel price which is one of the most consumable commodity in real estate project.

Stock call - TanCang Logistics (TCL-HSX)

TanCang Logistics JSC (TCL-HSX), a subsidiary of SaiGon Newport, provides after port services (including stevedoring and Depot) at Vietnam’s busiest container Cat Lai port and recently in ICD Nhon Trach. Based in dynamic industrial Southern region and the land fund available for business expansion supported by mother firm are TCL’s advantages.

Brief update about PTB and PAC

According to VAMA, for the first 5M2016, sale volume reached 111.438 cars (+22% y-o-y); in which, passenger and commercial vehicle go up 21% y-o-y and 42% y-o-y respectively. Similar to the impressive growth rate of automobile market, automobile and parts stocks such as SVC, HAX, PTB, HTL, PAC all closed in green at the end of today trading session. In today Analyst Pinboard, we will briefly update about PTB and PAC – two favorite stocks of Rong Viet Research.

Update PXS: A glimmer of hope

Our analyst has just had a discussion with representatives of Petroleum Equipment Assembly & Metal Structure JSC (PXS – HSX). Accordingly, the company has followed strictly the yearly plan for most of on-going projects. However, in the context of low oil prices affecting negatively to oil & gas industry, value of some projects have been revised down.

In 2017, PXS expects to reach total contract value at least ½ of 2016’s plan and the Company is conducting the bidding and preparation for other potential projects. Overall, the recent recovery of oil prices brings hope for future outlook of construction companies like PXS. However, we think this is just a glimmer of hope, PXS needs at least 12-15 months to see a breakthrough in the business performance. 

NT2: 5M2016 business result update

PV Power Nhon Trach 2 (NT2) has announced its operating results in the first 5 months of 2016 with a total output of over 2.3 bn kWh (+2.1% yoy) and equivalent revenue is VND2,424 bn. Hence, fore the first five months, NT2 has completed 52% of its yearly guidance in term of volume.

TCL- Earnings growth expects from ICD Nhon Trach project

TanCang Logistics JSC (TCL-HSX), a subsidiary of SaiGon Newport, provides after-port services (including stevedoring and Depot) at Vietnam’s busiest container Cat Lai port and recently ICD Nhon Trach (Dong Nai province).

DHA – The BOD has approved the 7% ESOP

In the latest resolution published this afternoon, the BoD has approved an issuance of 7% ESOP at par value. 1 million shares will be issued to increase total share outstanding of DHA to 16 million shares. This would be the first time ever since listed date (2008) that shares of DHA are diluted. ESOP is quite common nowadays and DHA has all good reasons for the first ESOP to reward employees who have been contributing to prosperity of DHA. The stock is currently traded at the highest price in 5 years.

Real estate sector - Opportunities from corporate restructuring

Accounting for 20% of the stocks that trade more than 100 thousand units a day in both the HSX and HNX, real estate is one of the most liquid sectors in the stock market. When it comes to price growth, however, the sector was nowhere among the best performers in the market over the past 12 months. While bank, insurance even O&G stocks took turns to join the rally, real estate stocks went mostly sideways during 2015 and the first half of 2016. Although 2015 and Q1 results did not show a strong recovery in profitability, abundant liquidity is a favorable condition for the restructuring activities of real estate businesses.

Looking back on commodity market

Following the recovery of the crude oil market, Vietnam’s stock market has witnessed a sharp increase in the stocks of oil and gas companies, over the past 2 weeks. Unlike crude, however, other material prices are still marching on a downward path.

VFG: Lucrative prospect thanks to Long An plant protection’s project.

Recent uneven and bad weather affected negatively agriculture companies. Agrochemical is highly competitive and segmented industry. In 2015, the whole industry fell 8% in growth rate and was pressured by Chinese products (accounted for 40% nationwide market share). However, some companies with advantages in brand names and economies of scale still witnessed positive outcome.

STK – Having improvement in core business but fiber price movement is still a risk

Today, the share price of Century Synthetic Fiber Corporation (HSX: STK) has quite deep correction since the end of May when the information about stock dividends and bonus shares was announced.  Looking backward at the Company’s result in Q1/2016, STK recorded a net profit of VND2.9 billion, only equivalent to 11.4% of the same period in 2015’s result. According to statistics of the General Administration of Customs, exports of fiber products, yarns and textiles were 378,754 tons in mid of May (+11.3% y-o-y). However, values of these commodities only slightly increased by 3% due to decrease in selling prices, which affected business results of textile companies. However, the company still has some potential catalysts for the remaining 2016.

Automobile market may diverge due to tax adjustment

Looking back at the first 4M2016, sale volume remain uptrend but unable to achieve impressive growth rate as last year. Particularly, for 4M2016, total sale volume reached 85,410 cars (+10% y-o-y); while 2014 and 2015 reached 28% and 37% respectively. Notably, in Febuary, both passenger and commercial cars recorded an negative growth rate for the first time in the last 36 months. For 4M2016, passenger cars and commercial vehicle achieved 47,525 cars (+14% y-o-y) and 31,668 cars (+24% y-o-y)