TCM - Company update report release on April 27th 2016

Recently, the price movement of garment and textile companies in general and TCM in particular has been less optimistic compared to the same period last year due to lacking of earnings growth and TPP news support. In more details, difficulties in fiber segment, the instability of Vinh Long operation and negative exchange rate movements are the main reasons that 2015’s earnings result of TCM could not meet expectations. Net revenue rose by 8.6% but NPAT lost 8.7%, achieved only 90.4% of 2015’s guidance. However, prospects for 2016 is relatively more positive when many businesses have found ways to improve operational efficiency.

SKG: A few high growing companies on Vietnam stock market

On April 25th, 2016, Superdong-Kien Giang High speedboat JSC (SKG-HSX) held 2016 Annual general meeting. Below are the summary notes from the meeting:

PGS – Core business activities has not demonstrated positive prospects

On 21/04/2016, Petrovietnam Gas South (HNX – PGS) organized Annual general meeting 2016.

In term of 2015 business results, revenue and profit after tax achieved slight improvement compared to plan (after adjustment in revenue) with 11% and 1% respectively, equivalent to VND 5,956 billion and VND 227 billion. Compared with 2014, PGS experienced the decline in both criteria with -20% yoy and -21% yoy respectively. However, gross profit margin significantly increased from 15.3% in 2014 to 19%. The reason came from new price mechanism from PVGas which helped PGS to deal with the drops in selling prices.

MWG - 3M business results updates: Continued to aggressively expand thegioididong and dienmayXanh chain

In the first quarter, MWG opened more 104 stores, including 82 stores of thegioididong and 22 stores of DienmayXanh. Besides, in 2015, they also launched over 220 stores of thegioididong and 49 stores of DienmayXanh. Therefore, with hundreds of new stores, MWG had an attractive growth in sales (+75% yoy) and PAT (79% yoy). Main contributions to MWG’s sales was still from new stores opening in 2015 and 2016.

Vietnam energy shipping picture – Better than expected

Amid the challenging theme facing bulk cargo shipping firms (Vosco, Vinaship, Nosco,…) where vessel freight (represented by BDI) is trading at the 30-year low level due to slowing down China and vessel supply surplus. Tankers business conversely has seen more resilient despite the storm of falling oil prices and FX volatility.

DHA - Conservative earnings guidance

As one of the companies in construction stone industry having good price growth since the end of 2014, Hoa An Joint Stock Company (HSX: DHA) received much attention from individual investors. Yesterday, at the 2016’s annual general meeting, DHA shared some important information relating to DHA’s operation and 2016’s guidance.

CTD – Q1 earnings jumped despite signs of growing payment pressure

Supported by impressive growth in its core business, CTD experienced an outstanding yet steady increase in stock price throughout 2015. However, the stock has become more volatile recently. In later days of March, CTD rocketed to over VND190,000/share but soon corrected to around VND166,000/share. Today, the stock started as high as 178,000/share but closed at the reference price. The Company published Q1 financial statement on Wednesday and announced today that it just sign 5 new contracts with a total value of VND5,453 bn.

SHA AGM note – Impressive profit target

Today, Son Ha Sai Gon JSC (HNX – SHA) just held its AGM, update on 2015 earnings results and 2016 annual target. In 2015, SHA recorded revenue and NPAT at about VND 508.1 bn (+14.3% y-o-y) and VND 28.4 bn (+181% y-o-y).

Doha Meeting 2016 – Failure to freeze output

Expected to be the historical energy agreements between major crude oil producers, Doha meeting on 18/4/2016 brought only failure in term of reaching the deal among 18 participants. Output freeze agreement could not exist as expectation over the last 2 months. As a result, crude oil price reacted and has declined for 5 consecutive trading sessions from USD 44.7/barrel on 12/4 to USD 42.7/barrel (-3.3%) on 19/4 while concerns about the agreement started to be actualized.

MWG – Company report releases on April 19, 2016

• Robust growth at both thegioididong and DienmayXanh chain
• An easy start in 2016 as expectations of MWG’s managers
• 2016’s growth drivers should be from (1) quantity and quality of DienmayXanh’s new stores and (2) Thegioididong’s ability to maintain its old stores’ growth as well as exploit new store locations
• 2016’s business result estimation
• Sustainable long term growth (2017-2020) should be tested in next years

GAS – Supports from new price mechanism and increases in pipeline fees

On 15/4/2016, PetroVietnam Gas JSC (HSX – GAS) organized 2016 Annual General Meeting.

PLC – Asphalt segment was inefficient in Q12016

On 14/4/2016, Petrolimex Petrochemical Corporation (PLC-HNX) hold the Annual General Meeting for 2016. In 2015, domestic volume was estimated at 412.611 tons, increased by 24.3% yoy and achieved 120.55 of the plan. The revenue and profit before tax growth rates were estimated at 1.7% yoy and 23.1% yoy respectively. Revenue growth has been less positive than profit due to the impacts from low oil prices on selling prices. However, gross profit margin has improved in both lubricant (26.5%) and asphalt (18.7%) and generated optimistic profit results.