Residential industry updates

The CBRE report has recently updated the overall performance in condominium market in both key markets, including Hanoi and Ho Chi Minh cities. The figures were improved in the last quarter, however, the whole year’s results were still getting worse than 2017’s performance.

Without Youtube MCN’s revenue, what would Yeah1 have left?

Starting from the television business, since 2015, Yeah1 (YEG) has expanded to digital arm with two main platforms: YouTube and non-YouTube (Google, Facebook). The recent incident about YouTube terminating the Content Hosting Service Agreement (“CHSA”) with YEG will cause the company to lose its revenue share from its YouTube third party/partners’ channels (from March 31st, 2019). Let’s take a look at the company’s remaining businesses.

DBD – Rising competition requires changes

DBD is trading at VND 43,000/share, equivalent to 15x trailing P/E and 2.5x P/B. Fundamental wise, the stock seems to be fully valued.

ACB – Reviewing 2018 business results

ACB finished its restructure phase in 2018 with a brilliant results. Healthy growth in its tradition banking, couple with extraordinary income from bad debt written back and lower provision expense pushed net earnings to grow approximately 143% YoY to VND 5,137 Bn in 2018.

Review on 2018 Performance of some Listed Banks

In this note, we would like to highlight some of the key points regarding the performance of some listed bank in 2018 and their outlook for 2019.

After today’s strong rise of banking stocks (March 12), we see that VCB, BID and MBB are currently trading at a premium valuation, while ACB is current trading at a fair valuation compared to the last three years. We consider MBB’s current PBR of 1.4x, despite higher than historical valuation, still quite attractive given the bank’s strong grow outlook and healthy financials. The positive point is that, the ratio of MC/Deposit of these banks has dropped to a much lower level than that in the last three years, except for CTG.

Interbank Interest Rates Dropped

While geopolitical issues are softening and economic policies, including fiscal and monetary, are converting into the loosening phase, pressure on the banking system’s liquidity are dropping. The interbank interest rates showed signals of early plummet after skyrocketing for last 6 months.

AST – Update 2018 Result and 2019 Outlook

AST ended 2018 with the growth of pre-tax profit from core operations reached 34%.

Impacts from China’s Slower GDP Growth

When the trade tension between the US and China is temporarily easing, the market is paying significant attention to the forecast of slower global GDP growth. Most of international institutions foresee global economy will be weaker since 2019. Specifically, the key point is related to China’s economy, the major momentum of global economy for over 2 decades. China’s manufacturing PMI gradually dropped and stood below the 50 threshold. The number of new orders and output slightly increase in February 2019.

HSG – How to Prepare for a Share Issuance

Hoa Sen Group JSC recently issued a notice on a vote in April. Accordingly, HSG plans to issue shares to proceed from VND 500-1,000 billion for working capital. dynamic. While the stock market price is trading below VND 10,000, subjected to a 10:1 share bonus in April, HSG has many requirements to satisfy in order to issue shares at par value. RongViet Research believes that short-term and medium-term opportunities for investors may appear as the company is going through radical internal changes.

BFC – Dividend yield looks attractive after a huge drop in the stock price

With a strong decrease in the stock price, BFC is currently at an attractive level based on the cash dividend that is possible to be paid from the free cash flow for equity (FCFE). According to our estimates, cash/FCFE ratio in the coming years can remain above VND 3,000, equivalent to a dividend yield of up to 13.4% at the price of VND22,350. This is an attractive level compared to the current deposit rate.

BVH – 2018 Business Results

According to the 4Q/2018 financial statement, BVH's consolidated net revenue in 2018 reached VND 28,987 billion (+ 21% YoY). Life insurance gross written premium came at VND 21,507 billion (+ 23% YoY), while that of the whole market grew by 33% YoY. Non-life insurance gross written premium was VND 9,841 billion (+22% YoY), compared with an increase of 11% of the whole market. Consolidated pre-tax profit reached VND 1,365 billion (-30% YoY). The company's market share at the end of 2018 was 21.3%, a slight increase of 2% compared to that of the end of 2017 and maintained its leading position.

Insurance business recorded a loss of VND 2,612 billion due to a sharp increase in claim payment expense and provisions. However, BVH still recorded a profit because of a 69% YoY increase in financial income.

VEA – 2019 Earnings to be Fueled by Positive Performance of Joint Ventures.

The considerable growth in VEA’s 2018 NPAT was attributable to the improvement in business results of its three main Joint Ventures (JVs) including Honda (HVN), Toyota (TMV) and Ford (FVL). We believe that in 2019, financial income of VEA will continue to be a main profit source of VEA and may increase as performance of JVs is forecasted to improve strongly thank to positive outlook of automotive and motorcycle industry.