FPT: A safe choice for earning yield higher than deposit interest rate

FPT reached their 2015’s guidance with revenue and PAT attributed to parent company’s shareholders at VND40,002 billion (+14%) and VND1,933 billion (18%), respectively and EPS was about VND4,369 (+17%). In 2016, we expected technology and retail would be main growth drivers for FPT. Conversely, FPT would have some segments contracted, such as: trading, system integration and telecom.

VNM – The impressive 2015

Recently, VNM has published the impressive performance in 2015. Revenue and PAT respectively grew 15.5% and 28%, reached VND 40,000 billion and VND 7,769 billion. As our view, the reasons were (1) sales increase of domestic and foreign market, (2) a gross margin improvement, from 35% in 2014 to 40.6% in 2015 thanks to the downtrend of materials (skimmed milk and whole milk).

NKG: Are they ready to double the scale?

2015 performance: remarkable growth

Nam Kim Steel JSC has had a well-performed year. In particular, Hot dipped galvanised (HDG) and steel pipe sale volumes were 423,000 tons collectively, 6% higher than the target and grew strongly compared to 2014. Eventhough the revenue declined slightly y.o.y (unaudited figures), NKG’s gross margin reached 7.58%, 2 percentage points more than that of 2014 thanks to the plummeting material prices. NPAT exceeded VND 126 billion, increasing by 65% y.o.y and fell within the target range.

Non-life insurance 2016: Growing momentum

The “mother” operation will be a key catalyst for the growing industry. Firstly, Ministry of Transport has published Decision 356/QĐ-TTg, which sets the target of 3.2 to 3.5 million cars in 2020; thus the annual growth rate shall be 10%. Secondly, total premium will be increase from 1.3% of the vehicle value to 1.5%. Insurers target this segment to growth 30% per annum.

BMP - Reaping the fruits

In order to attract FDI flows, infrastructure could be one major concern that Vietnam should push investment. With infrastructure investment to 2020 ups to VND 1 million billion dong, 2.7x higher than the period 2011-2015, we believe that construction and building material have high possibility of good earnings results. Last week, our industry analyst attended periodic meeting with Binh Minh Plastic JSC (HSX – BMP). In this meeting, the Company shared some positive information relating to BMP’s operation in 2015 and the upcoming investment in the future, especially investment in Long An factory.

HVG - Building a closed-end production line is the five-year priority

Today, RongViet Research has attended AGM of Hung Vuong Corporation (HVG).

PDB - Earnings leaps in 2015

Da Nang is one of the most typical cities having high growth in infrastructure as well as hotels and resorts in the recent years. For that reason, many building materials companies in the area ​​, including Pacific Dinco Corporation, achieved good business results in 2015.

PVT – Low oil prices is forming a clearer divergence across Oil & Gas segments

PetroVietnam Transportation Corp (PVT-HSX) has lately announced the 4Q2015 earnings report with consolidated revenue up 21.46% to VND1,675 billion and PAT (after minority interest) growing 60% yoy reaching VND154.7 billion. So, PVT has been able to maintain the pace of earnings growth over the past years put in the context of still difficult shipping sectors condition in general and low-oil prices challenge.

PGS – 2016 prospects with CNG divestment story

In 2016, PGS maintained the level of total output with ~235,000 tons of LPG (equaled to last year) and ~88 million m3 of CNG (+3.88% yoy). However, business result from PGS has not made any spectacular improvement due to the pressure from global crude market. For the whole year, revenue and profit after tax of the company both recorded a deterioration with negative growth rates, VND 5,952.76 billion (-21.04% yoy) and VND 112.89 billion (-17.40% yoy).

2015 non-life insurance sector overview: Double digit growth, stable loss ratio

After experiencing four consecutive years of declining from 2010 to 2013, the insurance market’s gross premium returned to positive growth in 2014. That recovery was attributed to the recovery of the overall economy and efforts to restructure operation of non-life insurance companies themselves. The MOF has estimates non-life insurance sector could record a 15% growth y-o-y by the end of 2015, equal to VND31,500 billion

Oil prices surged – psychological factors positively affected oil & gas stocks

Ending trading session on 24/01/2016 in ICE and NYMEX, future contract prices for Brent and WTI increased significantly to USD32.18/barrel and USD32.19/barrel respectively. The rates achieved 8.26% and 9.11% compared to last session. It pulled the crude prices out of the lowest level in 12 years which have maintained for a week (18 – 22/01).

NT2: Double advantages bring positive result in 2015

NT2 released its Q42015’s financial statements with acceptable performance. Accordingly, the fourth quarterly’s revenue and profit-after-tax (PAT) were VND1,708.3 bn (-4.1%, yoy) and c. VND450 bn (+26%, yoy) respectively. We would like to remind that from Sep 2015 natural gas price paid to Vietnam Petro Gas will be floated, instead of fixed-price as previous years. Due to natural gas market price has been lower than contracted price, Q42015’s sales were lower.