Brief update about Tay Ninh Rubber JSC (HSX – TRC)

Recently our analyst had a meeting with the representative of Tay Ninh Rubber Jsc (HSX – TRC) in order to update about the latest earnings result and company outlook.

ETC access strategy - Raising the factory’s standard

Due to technological limitations, Vietnam pharmaceutical enterprises can produce generics drugs only. Generics drugs, when bidding into ethical channel (ETC), will be classified into five tiers and will compete with other drugs of the same tier only:

Tier 1: medicines produced by manufacturers that meet EU-GMP or PIC/S in countries that belong to the ICH (USA, Japan, EU), and Australia

Tier 2: medicines produced by manufacturers that meet EU-GMP or PIC/S in countries that do not belong to the ICH and Australia. Indian companies account for the biggest part of the group, follow by companies from other Asian countries like Taiwan and Korea. There are only a few Vietnam enterprises in this group (Bidipharco, Pymepharco).

Tier 3: medicines produced by manufacturers that meet WHO-GMP, recognized by MoH.

Tier 4: medicines that have bio-equivalence, recognized by the MoH.

Tier 5: Others.

PHR - Q22016 Earnings Update

Phuoc Hoa Rubber Joint Stock Company (PHR - HSX) announced earnings results for the first 6 months. Accordingly, the results are lower than analyst’s expectation. Specifically, in 1H2016, production and purchasing volume reached 9,000 tons, down by 2% over the same period, meanwhile, the demand was good, sales volume reached 10,800 tons, up 8.4% compared to the same period. Because the ASP decreased by 13%yoy, revenue of finished goods slightly decreased by 5%yoy, corresponding to VND316 billion. Profit before tax was estimated at about VND55.7 billion, down 16% yoy and completed 44.3% the 2016’s plan.

VNP – Waiting for a stronger movement in the long term

Since late 2014, most of the plastic firms have benefited from the sharp decrease in material input prices. However, the performances of a few businesses like Vietnam Plastic Corporation (Upcom: VNP) bucked the overall trend. VNP’s main businesses are trading PVC, PET, PP, PE nuts, which are raw materials used to produce plastic pipes and packaging. Currently, the Company’s average annual quantity is about 20,000 tons of plastic of all kinds, accounting for 5% of the total supply of the whole market. Being a major supplier of large plastic domestic businesses, including BMP and NTP, however, its spreading investment activity has resulted in losses during the past three years. However, the recent process of restructuring is pulling VNP back after a long difficult period.

HDG – Hado Centrosa marks a spectacular return

Last week, our analyst had a meeting with representatives of Ha Do Group (HSX – HDG). Once an contruction unit under the Ministry Defense, HDG’s ability to access the military’s land bank at promising locations is a huge advantage over other property developers. HDG currently has a pipeline of 7 projects in Hanoi and HCMC and one 75-hectare residential area in Laos. While the electricity and leasing segments continue to bring steady profits and cash inflows, the coming of (1) Hado Centrosa Garden (Z756) (2) Ibis Hong Ha and (3) Hado Parkview promise to put the Company back on its growth track after a slow year of 2015.

SJD: 6M2016’s business update

In the first six months of the year, El nino negatively affected the production of Southern hydropower plants including Can Don Hydro Power Joint stock company (HSX:SJD). In particular, we did update that except Na Loi (a Northern hydro power plant), both three remaining plants (Can Don, Ry Ninh II, Ha Tay) would probably not reach their volume target.

ITC – Major shareholder increases ownership in light of new developments

Investment and Trading of Real estate JSC (HSX – ITC) just announced that one of its major shareholder, Future Architecture Design JSC (FAD) has registered to buy 6.7 million shares of ITC. The transaction will be performed between the 11^th and 29^th of July 2016 via the Vietnam Securities Depository.

BCI - Introduction of research report 06/07/2016

BCI is one of the most experienced real estate developers in HCMC. The firm is advantaged by a large land bank of over 300ha it has accumulated over the years at a very low cost. BCI was once known for its conservative business strategy and unfluctuating revenue and earnings. Following the withdrawal of the State-related HFIC as its largest shareholders and the following acquisition by KDH in mid-2015, BCI witnessed a major shift in its direction where the Company has been actively seeking to liquidate a good number of non-operating assets to focus resources on its larger projects. To counter the location disadvantage of its projects, BCI plans to start the construction of the two-kilometer Binh Tien Street BT project this year. We view these as necessary preparations that should put BCI on a fast growth tracks starting 2018.

SVC -Tough competition in 1H2016

Today, our analysts had a meeting with the representative of Saigon General Service Corporation (HSX-SVC) in order to update the company’s strategy, orientation and latest business performance

HUT- Updates on major current projects

Tasco JSC (HUT- HNX), a listed company in the business of BOT and BT infrastructure development has just performed a remarkable half-year, on which RongViet Research is going to update, regarding important projects and Q2’s result estimates.  

HPG: Steel’s strong growth in 2016

1H2016 ASP is around VND 9.4m per ton, considerably lower than that of 2015 (around 10.8m per ton), but already an improvement compared to late-2015 thanks to input price rise and domestic construction demand. Construction steel volume surged in April and May partly resulted from the distributors’ speculative activities, which has stopped in June. As the production process is extensive and requires 4 to 6 month- input stock, gross margin stays stable at around 20%, which can be expected to remain throughout the year.

PAC (HSX): Company report releases on July 4th, 2016

Dry Cell & Storage Battery Joint Stock Company (PAC-HSX) is the leading battery manufacturing company in Vietnam. With the advantages in market share, distribution channel, and customer relationship with Thaco Truong Hai, Ford, demand for PAC is ensured and growth is stable.