Vissan IPO - Expect on closed-end production line

Tomorrow, the deposit deadline for Vissan auction is upcoming. In today’s analyst pin-board, we would like to deeply analyze its business performance and prospects.

High possibility of growth and divergence in 2016 for listed ports firm

Put in the current context that many industries have to deal with various factors from oil prices, FX, interest rate to increasing foreign competition, logistics sector or port services in particular is rated to benefit from Vietnam’s expected fast increasing trade activities in the coming years from the conclusion of free trade agreements (FTAs).

MWG: January business result updates

The January result was very attractive. In January, MWG’s revenue was VND3,527 billion (+99% yoy), inculuding VND2,519 billion from thegioididong.com (+73%) and VND1,008 billion from dienmayXanh.com (+218%). So, the bottom line was VND153 billion (+118% yoy) and accounted for 11% out of total year guidance. This attractive growth was thanks to new stores, with number of stores nearly double compared to the same period. Therefore, with about 270 stores opened in 2015 and another 150 planned to open in 2016, MWG would probably reach their target for this year as PAT of VND1,388 billion, a 29% higher than the bottom line of 2015.

CTD – Running with a raging growth engine

Driven by a robust real estate market, strengthening FDI inflows and the government’s focus on infrastructure development, the outlook of the construction is very optimistic. As the leading Vietnamese contractor, CTD Coteccon SJC (HSX – CTD) has benefited greatly from the recovery of the housing market since late 2014. The Company’s involvement in high-end, mega-size real estate projects created a jump in both revenue and net income in 2015.

PVS – 2015 Business results along with the bumpy road of 2016

According to the consolidated financial report for 2015, business results showed no positive signs facing the impacts from global crude market. For the whole year, revenue and profit after tax of PVS achieved negative growth rates with VND 23,364 billion (-25.87% yoy) and VND 1,491 billion (-17.78% yoy) respectively. ROA and ROE has relatively declined compared to the same period but financial ratios remained at safe level.

Vietnam trade activities slowed down in the early 2016

The General Department of Customs has released the export-import values in January, 2016. In particular, trade activities saw a slowdown in both export and import growth since 02/2013. In 01/2016, the total trade value reached at USD 25.96 bn, downed 6% yoy. However, because of a stronger decrease in import growth (downed 10.7% yoy) than export growth (downed 1% yoy), trade balance saw a high trade surplus of USD 765 ml in January.

PLC - 2016 outlook: All eyes on asphalt business's efficiency

Petrolimex Chemical JSC (PLC) has just released the business result in 2015, accordingly, revenue reached VND6,916 bn (+1.4% yoy) and NPAT reached VND329 bn (+23.2% yoy). The revenue is in line with our previous forecast but the profit is under expectation, 10% lower than the previous forecast. The reason is in 4Q2015, the company business recorded some changes affecting to net profit.

FPT: A safe choice for earning yield higher than deposit interest rate

FPT reached their 2015’s guidance with revenue and PAT attributed to parent company’s shareholders at VND40,002 billion (+14%) and VND1,933 billion (18%), respectively and EPS was about VND4,369 (+17%). In 2016, we expected technology and retail would be main growth drivers for FPT. Conversely, FPT would have some segments contracted, such as: trading, system integration and telecom.

VNM – The impressive 2015

Recently, VNM has published the impressive performance in 2015. Revenue and PAT respectively grew 15.5% and 28%, reached VND 40,000 billion and VND 7,769 billion. As our view, the reasons were (1) sales increase of domestic and foreign market, (2) a gross margin improvement, from 35% in 2014 to 40.6% in 2015 thanks to the downtrend of materials (skimmed milk and whole milk).

NKG: Are they ready to double the scale?

2015 performance: remarkable growth

Nam Kim Steel JSC has had a well-performed year. In particular, Hot dipped galvanised (HDG) and steel pipe sale volumes were 423,000 tons collectively, 6% higher than the target and grew strongly compared to 2014. Eventhough the revenue declined slightly y.o.y (unaudited figures), NKG’s gross margin reached 7.58%, 2 percentage points more than that of 2014 thanks to the plummeting material prices. NPAT exceeded VND 126 billion, increasing by 65% y.o.y and fell within the target range.

Non-life insurance 2016: Growing momentum

The “mother” operation will be a key catalyst for the growing industry. Firstly, Ministry of Transport has published Decision 356/QĐ-TTg, which sets the target of 3.2 to 3.5 million cars in 2020; thus the annual growth rate shall be 10%. Secondly, total premium will be increase from 1.3% of the vehicle value to 1.5%. Insurers target this segment to growth 30% per annum.

BMP - Reaping the fruits

In order to attract FDI flows, infrastructure could be one major concern that Vietnam should push investment. With infrastructure investment to 2020 ups to VND 1 million billion dong, 2.7x higher than the period 2011-2015, we believe that construction and building material have high possibility of good earnings results. Last week, our industry analyst attended periodic meeting with Binh Minh Plastic JSC (HSX – BMP). In this meeting, the Company shared some positive information relating to BMP’s operation in 2015 and the upcoming investment in the future, especially investment in Long An factory.