Brexit: The terror from within the EU and its affects on Vietnam

Today, global and Vietnamese financial markets’ movements demonstrated cautious and unexpected reaction facing 51.9% of vote for Brexit. According to Bloomberg’s statistics, GBP depreciated by 11%, reached the lowest point since 1985. Most of global market indicators decreased by 5 – 7%. Even in commodity markets, oil price also dropped by 5.1% to USD 47.56/barrel, strongest decline since 02/2016. In contrast, the capital flows into safe assets such as gold or US’s bonds. Majority of assessments provided the opinion that leaving EU will negatively affect UK’s economy with increasing inflation and depreciation of GBP in the future.

IMP - Update on the plant projects and operating result

Recently, Rong Viet Analyst had a chance to meet with representative of Imexpharm JSC to discuss their projects progress and their operational status. In the first 5 months, Imexpharm recorded gross revenue of VND 343 billion and profit before tax of VND 39 billion, which are both lower than those of the same period last year. The reason is that sale of Imexpharm products only increased by 5% cannot offset the significantly decrease of franchise sales (32 billion YTD May 2016 versus 45 billion YTD May 2015), and that in 2016 there was no national program which is valued 20 billion in 2015. According to Imexpharm’s representative, gross revenue and profit before tax for first half of 2016 are expected to reach 450 billion 6T2016 (-2.4% yoy) and 45 billion (-18% yoy) respectively. This means IMP has only completed 41% of the planned revenue and 32% planned profit.

GMD- Core operation continues to keep growth on track

We have a meeting today with representative of Gemadept JSC (GMD-HSX) and hereby would like to give investors some updates.

CNG – Northern market shows no improvement

In the first 6 months of 2016, CNG realized a quite stable performance in a low-price environment, which hit a 12-year low in the first quarter. CNG’s six-month revenue forecasted by RongViet Research was VND 440 million (-11.1% yoy). According to the firm’s representatives, Earnings before Tax was around VND 57 to 58 million (-1.7% yoy). This figure is quite small compared to the year plan, which is VND 150 bn with Earnings before Tax and VND 127.1 bn with Net Income.

ITC – Key projects see new developments

Last week, our analyst just met with the management of Investment and Trading of Real estate JSC (HSX – ITC). Since our last meeting in May 2015, ITC has made significant progress in its investment and sale activities. Recent developments of Intresco Plaza in Dist.3, HCMC are expected to put ITC back to the race with other real estate developers in Saigon.

Circular No.08 - Completing the legal framework for handling bad debts

The State bank of Vietnam has issued Circular 08 with the goals to add and make several amendments about bad debts sale of VAMC.

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).