VNR updates – 2016 plan in line with reinsurance market

VNR experienced negative growth in EAT in 2015. Reinsurance fee was reported at VND1,617 billion (+6.9% yoy). EBT was VND291 billion (-30% yoy), whereas earnings from reinsurance segment dropped 35.8% as reduction in claim reserve released. Investment income also reduced by 31% yoy as VNR booked an abnormal profit from Samsung Vina divestment as well as interest rate in 2015 was a little bit lower than that of 2014.

PGI updates - business restructuring has yet brought any changes

PGI has the second year in a row having positive earning from insurance business (+9.7% yoy). Investment income was quite stable with slight increase 5.7% yoy. PGI reported an EAT of VND93.1 billion (+5.5% yoy).

REE – Unaffected long-term prospect

REECorp (HSX – REE) just posted its 2015 Annual Report and AGM documents, including guidance of 2016 business results and dividend payments. For FY2016, the Company targets an annual growth rate of 11% for revenue and 22.8% for net income. REE will pay VND1,000/share of cash (1Q2016) and 15% of stock dividends (2Q2016) from 2015’s net profit and plans to pay no less than VND1,200/share in either stock or cash for 2016.

NLG’s shareholders approve convertible bond issuance

Nam Long Investment Corporation (HSX – NLG) just announced a shareholder resolution on convertible bond issuance and a BoD resolution on the Company signing into a contract with ASPL – PLB Co. Ltd. for the development of the Casa project.

HAX – 2016 outlook would be affected by change in special tax rate policy

Recently, our analyst had a company visit with the representative from Hang Xanh Motors Service Joint Stock JSC (HOSE –HAX). By the chance, we would like to update the newest information to HAX regarding 2015 earning result as well as 2016 outlook. HAX operates in two main business which are (1) Automobile retail for Mercedes cars, (2) Automobile services (repairs, maintenance, ...).

CMG - Turning into a new growth phase

CMG-a listed company in technology sector. In this sector, investors are concentrating their trading on four tickers: CMG, ELC, FPT and ITD. In which, CMG has four main business segments (telecommunication, Integrated system (IS), Software and Distribution), which are quite similar to FPT’s but at smaller scale.

CHP: Prudence on 2016 guidance

AGM documents of Central Hydropower JSC (HNX – CHP) was published including the company’s 2016 business plan. Due to unfavorable hydrological conditions, CHP had a cautious target with commercial output at 592 million kWh and revenue at VND600 billion, down by 8.8% yoy and 18% yoy respectively. Based on this plan, the average selling price for 2016 will be at VND1,013/kWh, lower than that of 2015.

Have commodity prices bottomed out and are there signs for strong recovery? YES and NO!

In recent times, the recovery of commodity prices is increasingly mentions by investors, especially after the dramatic increase of crude oil price. Until now, the number of negative forecasts about oil price (such as oil prices may fall to $20/barrel or even $10/barrel) have decreased compared to the beginning of the year. Since then, Rong Viet Research supposes that expectations in the recovery of oil prices and commodity prices in according with the impacts on related manufacturing listed companies should be considered.

PDN – Benefiting from solid recovery in Vietnam’s trade activities

Dong Nai Port JSC (PDN-HSX) held the 2016 AGM yesterday on March 15 2016. Blessed with geographical advantage being situated in the heart of various Southeastern Vietnam industrial zones (Song than, Amata, Bien Hoa, Nhon Trach,…), PDN is earmarked to greatly benefit from increasing trade activities in the area as Vietnam becomes globally integrated looking forwards. Recognizing that ample room of growth for logistics services, the firm has mobilized resources to expand current facilities and infrastructure in Long Binh Tan and Go Dau ports.

Integrated assessment of oil and gas information during Q12016

Over the first 3 months this year, global crude prices have recovered at much faster rate than expectation. Specifically, Brent and WTI achieved the increases of +44.87% and +35.27% respectively compared to the bottom on 20/1/2016, equivalent to USD40.39 and USD35.28/barrel.

KDH – Returning to high-end properties

As the housing market is threatened by a tightening in credits, stock investors do not seem to have much taste for real estate stocks recently. In our opinion, the amendment of Circular 36/201/TT-NHNN (C36), if it is implemented will have different levels of impact on real estate projects. Changes to C36, i.e. higher risk coefficient and low ratio of short-term deposits to long-term loans, will firstly affect be speculation based on leverage on projects under construction and those without complete legal works. In this aspect, KDH has edge over its peers as the firms only sell land with complete house and ready LURs. 

AGM note: GTA - a rough road ahead

Yesterday, Thuan An Wood Processing JSC (GTA –HSX) operates its AGM, update on 2015 earnings results and 2016 annual target. In 2015, GTA achieved revenue and NPAT about VND 484.7 bn (+0.12% y-o-y) and VND 13.6 bn (+1.88% y-o-y) respectively. 2015 also witnessed a change in revenue structure as sale volume of preliminary product increased whereas sale volume of refined production decreased. Thus, even though average rubber prices significantly decreased (-20%) but GTA gross margin down from 7.57% to 7.4%.