PVP – higher crude oil tanker rate is the main growth driver
05-05-2023
: PVP
: Oil & Gas
: Vu Tran
Tags: attractive valuation higher charter rate results update
- PVTrans Pacific (PVP) mainly supplies crude oil transportation service and FSO Dai Hung Queen for serving crude oil exploration at Dai Hung Oilfield. In addition, PVP also commercially operates two vessels: PVT Hera and PVT Mercury for its parent company – PVTrans (PVT).
- Due to the Russia – Ukraine War, crude oil tanker freight rates have experienced a strong increase since 2H2022. Following that, the Apollo’s T/C rate has improved from 10,000 USD/day to the current 30,000 USD/day. In May, Apollo will be rewarded with a new T/C contract with an average rate of 37,000 USD/day to 40,000 USD/day.
- Not only benefit from a higher freight rate for crude oil transportation, PVP also maintains a stable cash flow from the bareboat contract of FSO Dai Hung Queen. The new contract for FSO Dai Hung Queen was renewed at the end of 2022 with the same terms as before.
- 2023 earnings can reach VND210 bn, equivalent to the 2022 level despite the abnormal profit from liquidating Athena. EPS 2023 will be VND2,120 and PVP share is being traded at a 2023 P/E of 5.8x. In the long run, there are two attractive points (1) fleet expansion (2) cash dividend of VND1,000 per share ~ dividend yield of 8.2%. In our view, the investor can accumulate at this current price.
ELC – Q1-2023 Business Results Update: Weak profit due to low large projects delivery
04-05-2023
: ELC
: Telecommunication Services
: Tung Do
Tags: ELC
- Q1-2023 revenue reached VND 86 bn (-58% YoY) and NPAT-MI down to VND 4 billion (-67% YoY), only completing 10% and 6% of the 2023 guidance respectively.
- For 2023, ELC sets a revenue target of VND 850 bn (-2% YoY), lower than our current forecast of VND 1,100 bn, while net profit target is VND 56 bn (+51% YoY), relatively in line with the forecast of VND 54 bn. Given the project-based nature of the business model, we expect ELC’s Intelligent Transportation System (ITS) segment to record a good profit in Q2-Q3/2023 following the Nha Trang - Cam Lam expressway completion (May 2023), the ITS component of which is constructed by ELC.
- The current forecasts and target price are under review.
There is a diversification in 2023 business targets of Vietnamese tire producers
28-04-2023
: DRC, CSM, SRC
: Automobiles
: An Nguyen
Tags:
- From the documents of the 2023 Annual General Meeting of Shareholders of Vietnamese tire producers, we see a diversified picture in business targets. Although tire consumption in both the domestic and export markets is forecasted to be weak in 2023, we see that companies keep investing on production activities.
- We suppose that there is a two-sided effect on gross margin of Vietnamese tire producers in 2023, including positive and negative. On the positive side, raw material costs are predicted to decrease in 2023. On the the negative side, we see a signal of decreasing selling prices, resulting in a risk of lower gross margin.
- In the context of decreasing logistic costs since the beginning of 2023, we suppose that this is a positive contributor for the bottom-line of Vietnamese tire producers. However, we suppose that the positive effect would not be strong because it accounts for a small proportion of total costs.
VHC - Brighter prospects for 2H 2023
27-04-2023
: VHC
: Fishery
: Loan Nguyen
Tags:
- VHC reported weak Q1 2023 results, with revenues of VND2.2tn (USD94mn), a YoY decrease of 32%. Consequently, NPAT-MI plunged 60% YoY in Q1 2023 to VND219bn (USD9mn).
- We anticipate that VHC's profit growth recovery will materialize in the latter half of 2023: two factors: (1) the US market to recover; (2) orders to recover from the Chinese market after the re-opening. Overall, in FY2023, we forecast net revenue and NPAT to reach VND10.6Tn (or USD452Mn, -20% YoY) and VND1.3Tn (or USD56Mn, -34% YoY). 2023 EPS will be VND 7,134 (-34% YoY).
- Using a 50:50 valuation mix of FCFF and SoTP methods, we arrive at a fair value of VND57,500, implying an expected return of +1% including a cash dividend yield of 4%. We have a NEUTRAL recommendation for this stock.
SCS - Q1-2023 Business Update: Export-import cargo volume drops to record low
26-04-2023
: SCS
: Logistics
: Tung Do
Tags:
- Q1-2023 Revenue/NPAT plummeted by -34% YoY/-40% YoY as export-import cargo volume dropped to the lowest level since listing.
- SCS sets a low target for 2023, mainly due to concerns about weak trade flow, with export-import cargo volume and NPAT both decreasing by 11% YoY. Q1-2023 Revenue and NPAT completed 19% and 21% of full-year target, respectively.
- For 2023F, revenue and NPAT are projected at VND 740 billion (-13% YoY) and VND 525 billion (-19% YoY), respectively, corresponding to EPS 2023F of VND 5,215. SCS is trading at P/E 2023F of 13.6x. Reiterate ACCUMULATE recommendation with a TP of VND 69,300.
Update on monetary market in April 2023
25-04-2023
: VDS
: Macroeconomics
: Ha My Tran
Tags:
- The SBV continues to support liquidity for the banking system.
- Credit growth is recovering.
- Comments on Circular 02-03/2023 of the SBV.
The steel industry in 1Q/2023: Less than expected
24-04-2023
: HSG, HPG, NKG
: Materials
:
Tags: Steel
- Volume recovery is yet to confirm a recovery trend, GI/GL exports a rare positive point.
- 1Q earning release starts with SMC’s net income returning positive.
The US Dollar: Still dominant
21-04-2023
: VDS
: Macroeconomics
: The US Dollar: Still dominant
Tags:
- The US dollar has long played an outsized role in global markets.
- It continues to do so even as the US economy has been producing a shrinking share of global output over the last two decades
LHG’ S 2023 AGM NOTE – STEADY, STABLE & SUSTAINABLE
21-04-2023
: LHG
: Industrial Land RE
: Hung Le
Tags:
- Long Hau set a business plan for 2023 with a projected revenue of VND 902.1 billion or $38.4 million, a 28.5% increase from the previous year, and an anticipated profit after tax of VND 127.05 billion or $5.4 million, a 37.7% decrease from the previous year actual figure..
- For the Capex plan, Long Hau continues to have ambitious plans with a total investment of up to VND 1,853.3 billion or $78.8 million (+23.1% YoY).
- In the long-term, progress of real estate projects seem to slow down as being impacted by master plan of the province, the Decree 35 and land use conversion policy, while LHG is accrelerating RBFs project in both Long Hau 3.1 IP and Da Nang High Tech park.
- We projected that the total revenue would be VND 126 billion or $5.36 million (+15% YoY) and NPAT-MI would be VND 45 billion or $1.91 million (-6% YoY) for the first quarter of 2023. Our FY2023 forecast for LHG’s revenue and NPAT will be VND 694 bilion or $ 29.5 million (+10% YoY) and VND 288 billion or $12million (+ 41% YoY)., respectively. While EPS will comes at VND 5,418.
- We maintain our target price of VND 33,000/share. Adding an annual cash dividend of VND 1,900 per share, the total expected return will be +38.7% (compared to the closing price of 04/20/2023).
Seaport – Difficulties are evident and there is no reliable signal for short-term recovery
20-04-2023
: GMD, VSC
: Seaports
: Quan Cao
Tags: Seaports
- Total im-ex value through sea containers in Q1/2023 is estimated at USD 74 billion (-12% YoY), of which the export value and import value are USD 43 billion (-10% YoY) and USD 31 billion (-15% YoY), respectively. Weakening trade flows have led to a decline in the country's container throughput. According to Vinamarine, in Q1/2023, the total throughput of containers nationwide reached 5.18 million TEUs (-15% YoY) of which exports, imports and domestic throughput were 1.76 million TEUs (-8% YoY), 1.78 million TEUs (-18% YoY) and 1.69 million TEUs (-17% YoY), respectively.
- Im-ex companies are not ready to import to store inventories as raw materials for production when the value of imports falls deeper than the value of exports, and the PMI index is also below 50 for most of the time of the last two quarters. Trade flows have not yet sent positive signals to help port operations recover soon.
HND – 1Q23 earnings in line, poor power output & high coal prices hit the bottom line
19-04-2023
: HND
: Utilities
: Hoai Trinh
Tags: HND
- HND announced its 1Q22 electricity sales volume of 1,334 mn kWh (+21% QoQ, -21% YoY), in line with our expectations. Power output fell sharply YoY mainly due to (1) poor coal supply (insufficient coal for Qc production in several months), (2) low electricity demand for consumption, and (3) lower contract power output YoY with the alpha Qc at 75% in March.
- Power output dropped YoY, while net revenue recorded VND2,571 bn)/ USD 109 mn (+1% YoY), owing mostly to the high ASP (+29% YoY) (as thermal coal prices remained high). Depreciation expenses decreased by VND71 bn )/ USD 3 mn (-24% YoY) in 1Q23, while NPAT recorded just VND10 bn)/ USD 0.4 mn (-96% YoY), primarily due to poor power output (Qc&Qm) and high coal prices (equivalent to Q4/2022), preventing HND from benefitting in the competitive general market (CGM).
- We retain our ACCUMULATE rating with the one-year target price of VND 15,800/share (adjusted up 1% from the price of VND 15,600 due to the downward adjustment of the risk-free rate). With an expected cash dividend of VND 1,000/share in the next 12 months, it implies a total return of 17%, based on the closing price of Apr 19th, 2023.
Oil Gas sector – High oil price thanks to OPEC+ cut
18-04-2023
: PVD, PVS
: Oil & Gas
: Xuan Vu
Tags: High oil price OPEC+ cut
- OPEC+ announced a cut of 1.1 million barrels per day (mbpd) in May and will maintain the cut until the end of 2023. That combined with Russia's subsequent announcement of a 0.5 mbpd cut make the group's total output cut of 1.6 mbpd. Meanwhile, shale oil supply has only increased by 0.4 mbpd since the end of 2022.
- China is likely to be the global oil demand driver after the country has reopened. This country’s demand will gradually improve quarter by quarter from 2Q2023 and averagely increase by 0.7-0.9 mbpd. Totally, the world oil demand will increase by 2 – 2.3 mbpd.
- Global demand is forecast to exceed pre-pandemic levels while supply is being cut sharply by the OPEC+. Accordingly, the IEA concerns that the market will face a supply shortage in the second half of 2023. The average price of Brent oil forecast in 2023 will be over USD 90/barrel but can not be higher than USD 100/barrel
05-05-2023
157 
