HDB - 2Q2018 Business Results Update

The parent bank is still driving HDB’s current growth. However, the parent bank is under a pressure to seek additional approval for credit expansion limit from SBV to make room for further growth in 2H2018. This will become even more challenging in the context of SBV’s gradually monitoring closely credit expansion, as per their recent announcement.

Regarding HD Saison, though possessing many strengths such as top three position in the consumer finance industry and nationwide transaction network, the company still performs under expectation. Similarly, FE Credit – the market leader in consumer finance – only achieved a 4% credit growth in 1H2018. This reflects a negative signal for the future growth of consumer finance which needs to be watched carefully. This will be a mutual challenge of HD Saison and other players in the industry.

PVOil – Still Facing More Challenges

PVOil is the second leading player in gasoline distribution with a market share of 22%. After completing its IPO and being listed on HOSE, PVOil share price is expected to rise due to its current positioning. However, the 2018 conservative plan has put pressure on the stock price recently.

TRA – Expecting Improvement in 2H 2018

TRA recorded a 7% decline in revenue and 47% decline in NPAT in 1H 2018. EPS is VND 1,356, compared to VND 2,633 in the same period last year. This is the first time the company grew at a negative rate since 2014.

Domestic export growth is higher than FDI-related corporations’

According to Customs’ data, Vietnam’s export value reached, in 1H2018, USD 114 Bn, up 16.3% YoY. In details, FDI’s export value accounted for 70% and grew at an annual rate of 15.7% YoY. Notably, domestic export growth, around 19.5% YoY, is higher than FDI-related corporations for the first time in recent years.

FPT- Result Update on FPT Corporation JSC

Rong Viet Securities Corporation hereby presents the Result Update on FPT Corporation JSC (HSX: FPT) with the overall opinion as follows:

Real estate picture in Q2 2018: Slowdown in both Hanoi and Ho Chi Minh markets

Hanoi is quiet while Ho Chi Minh is slowing down.

The real estate markets in Hanoi and Ho Chi Minh City showed different trends between 2Q and 1Q. In the first quarter, while Ho Chi Minh City was booming, with total apartment transaction volume of 9,200 units, (+26% YoY), total apartment units sold in the Hanoi market was 6,600 units, down 19% compared to the same period last year. However, in the second quarter Ho Chi Minh took a dive as total apartment transaction volume dropped to 7,055 (-26% YoY), but in Hanoi about 5,900 apartment units, (-22% YoY) were sold.

Bancassurance in Vietnam: Is It a Win-Win Cooperation?

Bancassurance is a type of cooperation in which the insurance companies distribute their products to bank’s customers. Due to the increasing demand for intergrated financial products, bancassurance has become a certain trend to enhance the customer experience.

Vietnam’s Credit Growth Is Likely To Miss The Annual Target Of 17%

Currently, we see more and more signals of low credit growth in 2018. Furthermore, it is possible that the 17% target set at the beginning of the year will not be met. According to GSO, Vietnam’s credit growth stood at 6.4% YTD at the end of June 2018, lower than the last two years’. In 2018, credit growth is likely to be at 15%-16% YoY, owing in part to a slightly tighter monetary policy. In our view, global changes, including generally tightening monetary policies around the world have been putting pressure on State Bank of Vietnam (SBV). If the FED ended its QEs before normalizing the monetary policy via interest rate hikes and selling securities assets, the credit growth is likely to be lower before rising the interest rates due to changes in the global environment.

Group 5 Seaports Overview

The largest seaport group in Vietnam

Group 5 consists of ports located in key economics zone, South East of Vietnam, such as: Ho Chi Minh city, Vung Tau province, Binh Duong, Dong Nai. As the most important economics zone in Vietnam, this group accounts the largest share in container volume throughput in Vietnam.

MBB - 2Q2018 Business Results Update

This week, MBB has published its 2Q2018 financial statements, announcing a 11.2% YTD growth in loan balance and a PBT of VND3,829bn during 1H2018. Accordingly, MBB has fulfilled 56% of its PBT 2018 guidance so far.

FPT Digital Retail JSC’s Initial Report Release (HSX: FRT)

FPT Retail (FRT) is the second largest mobile phone retailer in Vietnam, after MWG. Its smaller size will allow FRT to expand, although the smartphone market is gradually becoming saturated. Additionally, we believe that F.Friends and Subsidy can make a difference and will partly help FRT maintain its  growth for the next two years.

TCM - Update on 1H2018 Business Result

TCM has published its 1H business result with revenue of VND 1,648 bn (+7%), gross profit achieved VND 291 bn (+15%). However, its NPAT slightly reduced 1% at VND 117 bn. After 1^st half of this year, its revenue and NPAT recorded 52% and 62% of the year guidance, respectively.