Update on PME’s EGM

We see this as a preparation for STADA to retain its influence in the Vietnam market, since it will withdraw from the STADA Vietnam J.V after 2019. PME members will gradually play a larger role as representatives of STADA.

HAH - Business Update

HAH’s port operations are having a tough time because the firm is losing market share to the downstream ports in Haiphong. Main reasons: (1) unfavorable position on the Cam River, (2) only one berth makes it difficult to arrange schedules. As a result, international containers’ proportion in total containers throughput of this port has declined from 73% (2014) to 46% (2017). As the price for international containers handling services is higher than domestic containers, change in this ratio also results in a reduction in GPM.

CHP – Unusual Hydrological Conditions Led to Poor Performance in 3Q 2018

Due to unusually low level of rainfall in 3Q 2018, CHP experienced another quarter of low electricity output, which may result in poor bottom line performance. Even though we expect a certain recovery in performance in the last quarter of this year, the outlook for hydrological conditions in early 2019 will remain tough for the company.

Is Vietnam going to benefit from the global IT outsourcing trend?

According to Gartner (April 2018), worldwide IT spending is projected to be USD 3.7 tn in 2018, an increase of 6.2% from 2017. While the growth will be lower in 2019 as certain devices (smartphones, PCs) and communications services are entering a period of saturation, Enterprise software spending will still see high growth in the upcoming years, mainly due to the evolution of digital business.

DRC – Update on 3Q 2018

Revenue in the third quarter continued to improve slightly due to improvement in sales volume in the radial tire segment, a key product for DRC. Meanwhile, sales volume of bias tires slumped. We anticipate that earnings in 3Q 2018 would witness a noticeable fall compared to the second quarter of this year.

The revolution of Netland

Netland’s business model includes two main segments, including residential development and brokerage segments. In 2017, Netland acquired 95% stake of a broker firm, namely DKR. It is one of top broker compaines in the South. In term of residential business, the company owns a relative huge land bank at hot spots, such as Ho Chi Minh, Nha Trang, Phan Thiet and Dong Nai.

Inflation Expectations

Monetary policy is always driven by inflation expectations. The role of external factors has a considerably smaller role.  In Vietnam, the Government and the State Bank are aware of the above relationship and make efforts to keep inflation in check.

PPC – Update on 3Q 2018 Business Performance

Core earnings of PPC in 3Q 2018 remained stable as the improvement in average selling price compensated for the reduction in sales volume. Meanwhile, new changes in PPC’s capex plan helped to reduce the risk for the company and enhance its ability to maintain its current high dividend policy.

CTI - Rebound in 2H 2018

Cuong Thuan Investment Development IDICO JSC (HSX: CTI) specializes in infrastructure construction and quarries. It focuses on these as a long-term growth driver. Most of its projects are located in the Dong Nai province.

Top line revenues dropped in the first half, except for stone quarries. Revenues and NPAT came in at VND 416 billion (-25% YoY) and VND 56 billion (-20% YoY), respectively. Construction income fell 63% YoY, mainly caused by a six-month pause in BOT 319 Long Thanh - HCMC. BOT fees slightly decreased. Quarries revenue surged 118% albeit a layoff from quarry Doi Chua 10, showing ramp-up demand and scale-up production. Major production increased sharply in Tan Cang 8 and Xuan Hoa quarries, with an estimated monthly revenue of VND 10 billion.

GEX – Restructuring of the electrical equipment sector promises positive results

After completing the M&A and restructuring process, GEX electrical production mix will cover fully high, medium and low voltage. We believe that the diversified production mix is an advantage for GEX. All of the subsidiaries have been established for a long time and have a good reputation in the industry. Increasing ownership and management improvement promises positive results. Information transparency after the delisting of the subsidiaries and the centralized management structure through the holding company Gelex Electric remain a matter of concern. Overall, we think that the restructuring of the electrical equipment sector will bring positive effects to GEX.

Competitive Landscape of the Battery Industry and Position of PAC

Despite fierce competition, PAC’s market share remains stable. We believe that its distribution system management plays an important role in the success of this firm.

Positive information for downstream ports in Hai Phong

The Ministry of Transport (MoT) is drafting a circular regulating prices for a range of services at seaports in Vietnam to replace old decisions