DQC – Prudence on 2016 guidance

Yesterday, Dien Quang JSC (DQC –HSX) just held its AGM and give a broad update on 2015 earnings results and 2016 annual target. In 2015, DQC recorded revenue and NPBT at about VND 1,082 bn (~86% annual target) and VND 268 bn (~134% annual target).

BCI – Much optimism for 2016 business results

Binh Chanh Construction Investment Shareholding Company (HSX-BCI) just held its 2015 Annual General Meeting last week. For 2016, BCI proposed a conservative business plan with 9% decline in net revenue and profit after tax only half that of. We believe that this plan is well within the reach of BCI and that the Company can do much better. Even though BCI has only two projects open for sale, i.e. Western Dragon and Phong Phu 4 RA, there are several projects in the Company’s pipeline that are almost ready to launch and can be implemented quickly for sales recognition, for example, Le Minh Xuan Industrial Park and Le Minh Xuan Small Industries and Handicrafts Zone.

TCL- Short-term earnings growth faces restriction

By quickening the integration process to global economy, Vietnam promises to see an influx of investment to manufacturing sectors in the coming years. This in turn would trigger a strong growth in goods and cargoes which eventually bring up demand for logistics firms. Hereby, RongViet Research would like to give some views on business prospect of Tan Cang logistics (TCL-HSX), a provider of container handling and Depot services in Southern Vietnam.

Kraft industry is expected to maintain significant growth

Based on the economic recovery and strong trade activities thanks to concluding free trade agreement, paper-packaging industry recorded positive performance in 2015.

CTG: Priority business model transformation and technology investment

In 2015, CTG’s total assets increased by approximately 18%, mainly from growth in customer loans and investment securities. Those sectors accounted for 68.4% and 15.4% of total assets respectively with the growth rates of 22.5% and 28.5% in 2015. CAR announced at more than 10.3% and non-performance loan ratio was among the lowest group in banking system with about 0.9%. LDR was announced at 86% in 2015.

SVC – Tough challenge to achieve impressive growth rate

After an impressive period of growth, since the beginning of 2016, automobile market is showing signs of showing. In particular, according to VAMA, total sale volume for 2M2016 reached 34,883 cars (down 15%); meanwhile, 2M2015 sale growth achieved about 80% y-o-y

PVS – Company report releases on April 4, 2016

With the global trend of crude oil prices to maintain at low level, PVS has experienced long-term impacts on business results, especially on marine, FSO/FPSO and survey segments. The effects were clearly reflected into 2015 business results and we expected it to continue in 2016.

PNJ - Optimistic 2016 prospects thanks to the jewelry business and the significant decrease in financial burden

In 2015, core business of PNJ saw probable growth. Revenue of parent company recorded VND7,690 billion (+6.72% y-o-y). Gross margin improved sharply 387 percentage points from 10.98% of FY2014.  The gold jewelry segment accounted for the largest share, which was 80% of the revenue and 88% of the gross profit. In 2015, PNJ opened and upgraded 48 stores in 25 provinces and cities, exceeding 37% annual plan. The expansion and growth strategy helped PNJ’s market share increase significantly from 21% in 2014 to 25% in 2015. However, large financial reserve for investments in Dong A Commercial Bank (VND311 billion) and Dong A Real Estate JSC (VND30 billion) has inflated the financial expenses 4.5x compared to those in FY2014; therefore, the bottom line considerably drop 37.8% y-o-y.

Fertilizer companies: El Nino and industrial prospects

Market is entering AGM season. Prior to official AGMs of listed fertilizer companies, RongViet Research has schemed through AGM documents of several companies to have a quick view on this industry in 2016.

LHG – Faster and bolder

The stock of Long Hau JSC (HSX – LHG) has been one of the best performing securities since mid-March, gaining nearly 30% in the past two weeks. In the 2015 AGM held on Monday, LHG revealed the business plan for 2016 and the five-year period to 2020 along with a detailed plan for the development of Long Hau 3 Industrial Park and the initiative to spin off its service business.

Seaports – Opportunities from short-term corrections

Retrospectively, most listed port operators in Hai Phong achieved “spectacular” results in FY2015. On specifics, revenue and PAT recorded annual growth of ~15% and impressively 34% compared to 2014. Those achievements were attributed to: (1) 19%yoy rise in containerized cargo passing through Hai Phong, (2) abnormal increase in refrigerated container numbers (food mainly) and (3) longer than expected storage duration for refrigerated goods at ports, due to Vietnam-China border trade halt in mid-2015, made this services revenue (having high GPM) to hike. In addition, the higher and more even allocation of goods between last year’s quarters greatly supported ports’ earnings results and its following stock prices. In fact, share price of listed ports such as VSC, DVP, DXP and HAH did gain 20% on average in 2015.

STK - Positive 2016's business result

The downtrend in prices of commodities such as cotton and oil leding to a sharp decline in fibre prices had caused negative impact on earnings of many fibre companies, including Century Synthetic Fiber Corporation (HSX - STK). The volume of fibre Yarn production was only 26 885 tons consumption, reduced ~ 18.7% compared to 2014. With the average selling price dropped 12% fiber, revenues have plummeted ~ 29% and profit after tax reached only 71.3 billion, equivalent to EPS of 1,537 dong/share.