Updates on VGC

The Ministry of Construction (MoC) divestment from Viglacera.

Currently MoC’s stake in Viglecera is 54%. As planned, the Ministry is expected to sell about 80,579,262 shares (corresponding to an 18% stake) in Q2 2018 and accordingly lower its ownership to 36%. The offer is open to all stakeholders, including individual and institutional investors. The divestment progress is reported to be as followed:

MPC – Q1/2018 Business Results Update

At the end of Q1/2018, MPC recorded a 139% increase in EPS compared to the same period last year.

MSN – Update on the Business Performance of Masan

For 2018, Masan Group set a possitive revenue target of VND 47,000 Bn (+25% yoy) and an after-tax profit after minority interest of VND 4,000 Bn (+29% yoy).

FPT’s 4M2018 Business Results: Profitability Improved as Expected

FPT has released its estimated 4M2018 business results, showing an improvement in both profit and profitability compared to the same period last year. Similar to our expectations, divesting from the retailing and trading business makes ways for FPT to concentrate on technology and telecom in order to boost the overall profitability. Compared to the same period last year, FPT recorded 21% growth in net income despite a 50% decrease in revenue because of the divestments.

Oil prices

It is time, in our view, for many Asian countries to limit their dependence on fossil fuel. China and Japan are doing that, others should follow.

Our target price for end-2018 (WTI) is around $80/ bbl.

Vietnam Ecommerce's Landscape

Vietnam ecommerce market is forecasted to have CAGR of more than 33% in the period 2017-2022. Smartphone users account for 84% of Vietnam’s population (96 millions) along with an internet penetration rate of over 50%. This is the sweet spot for both onshore and offshore retailers.

NCS - Update on Initial Coverage Released of NoiBai Catering Services

Noi Bai Catering Services JSC (NCS – UPCOM) is a leading player in flight catering and related services at NoiBai international airport. Due to its monopoly status in providing catering service for Vietnam Airlines, as well as its extensive experience in the catering services industry, its business activities have been growing up over the years. 

POW – Update on 4M 2018 Business Performance

After the turnaround in 2017 business results, POW’s performance in the first 4 months of 2018 continues to show significant improvements with even more catalysts to come in 2018 - 2019.

CSM – Earnings Target Is Hard to Reach

For the financial year 2018, CSM plans to record revenues of VND 3.8 Tn (+7% YoY) and NPBT of VND 105.3 Bn (+53%). Although the top-line target is reasonable, we do not agree with them about the bottom line.

GMD – Update from 2018 AM

In 1Q2018, GMD posted revenue and EBT of VND689 Bn (-20% YoY) and VND1,507 Bn (+1,177%),respectively. After selling 51% stake in GMD logistics and 49% in GMD shippings in Feb 2018, revenue of logistics segment down 61% leading to a decrease of 20% in total revenue YoY due to not consolidating revenue from 2 companies. However, revenue from port businesses surged 32% thanks to the high utilization rate of Nam Hai Dinh Vu Port (~ 110% capacity) with support from Nam Hai ICD. Gross profit margin improved 7% thanks to not consolidating logistics segment (since Feb 2018) which has lower GPM compared to Port operation. As a result, Gross profit and core EBT experienced a modest growth of 5% and 10%, respectively.

PPC – Update from 2018 AGM

With earnings in 4M 2018 reaching over 55% of the annual guidance, the 2018 AGM of PPC reveals positive signals about its 2018 outlooks.