FCN – Expecting on a surge in earnings

Lately, RongViet Research had a discussion with representative of Fecon JSC (FCN-HSX) on the company’s outlook. The firm focuses on 3 main business pillars: (1) foundation improvement, (2) underground work and (3) infrastructure construction. Its backlog cumulative to 30 June 2017 is VND2,500 bil (including VND700 bil already recognized in H1 2017) and the firm could sign additional projects worth  VND1,000 bil for H2 2017. Given the finalization of construction work value in Q4 each year, the firm’s 1H 2017 result has just completed 25% and 31% revenue and NPAT guidance respectively.

Construction Steel Price is in a Strong Upward Trend

News on the global steel market are expecting steel prices to remain increasing strongly in the near future. China has been putting efforts into reforming the industry by cutting excess capacity as well as shutting down non-environmentally friendly factories. Moreover, the abundant force from the country’s construction demand has boosted billet and HRC prices since May. Upstream materials including iron ore, coking coal and steel scrap are inclining steadily as well. We consider this market conditions to be in favor of steel mills’ sale growth and profit margin stability.

FPT Transferred 30% of FPTRetail to Dragon Capital and VinaCapital

FPT has just announced the completed deal transferring partial ownership of FPTRetail to financial investors. Accordingly, 6 million shares, equivalent to 30% of FPTRetail whose charter capital was VND200 billion at the end of Q2 2017, were sold to funds related to Dragon Capital and VinaCapital. FPT subsequently owns 55% shares of its retail business at the moment, which means FPTRetail remains a subsidiary under FPT Corporation. Therefore, the gain from the divestment might not be recognized as an extraordinary profit until further divestments are completed by FPT.

Preliminary Assessment on the Effects of Future Index Contracts

As the continuous development of the world derivative market together with the needs of Vietnam stock market to launch new products to serve the diversified needs of investors, derivative stock market after 3 years cherished is about to be put into operation in this 2017 with the first two products are Future stock index contract and government bond future contracts. In the first phase, the trial run of these two products may not be attractive, but will create new milestones for the market.

Updated HVN-VJC performance in H1 2017

The increase in passengers has helped boost the volume of both airlines in H1 2017: VJC +22% YoY, and HVN + 6% YoY.

Capital Strongly Flew into Penny Stocks in July

In July, penny stocks appeared attractive as according to our statistics, 127 out of 236 stocks valued lower than VND10,000, outperformed the market. Besides, stocks enjoying three-digit growth rates in July included HAI, HAR, SPI, and CMC which are also penny stocks.

PTB – Some Updates on Phu Cat Wood Processing Plant

Phu Tai Corporation (HSX: PTB) has put the Phase 1 of Phu Cat wood processing plant already into operation on August 1st.

Effects of New Tariff on Imported DAP Fertilizer

Recently, the Ministry of Industry and Trade has announced application of tariff amounting to VND1,855,790/ton on imported DAP fertilizer. Given the latest market price of Chinese DAP fertilizer (which accounts for 80% of imported DAP fertilizer) at VND9,100/kg, the product price may increase by 20% to VND11,000/kg. Looking at current domestic DAP prices of around VND9,500/kg, we expect a stronger consumption for domestic DAP products.

Real estate result updates for Q2 2017_Part 2

Real estate result updates for Q2 2017_Part 2

Reviewing Q2 2017 Business Results of Listed Companies

Until August 1^st, 612 listed companies on HSX and HNX exchanges has announce their Q2 business result. While the results of some sectors are influenced by a single stock like BVH (Insurance), PVD (Oi & Gas), VJC (Travel & Leisure), stocks in other sectors has displayed a clear trend.

Real estate result updates for Q2 2017

H1 business results of almost real estate companies have been revealed. Contrary to Dat Xanh (DXG) and Novaland (NVL), Vingroup (VIC), Khang Dien (KDH) and Nam Long (NLG) continued to have solid revenue from the hand-over of their core projects. However, the NPAT growth was diversified among these companies. While NVL recorded negative number, NLG and KDH saw an increase in NPAT thanks to financial incomes. In H2 2017, we expect that continuous deliveries in completed projects will encourage core business result, especially Dat Xanh and Nam Long.

Vietnam petroleum shipping stocks – H1 2017 Earnings analysis

Vietnam shipping company performance continued to be plagued by prolonged weak demand, which was compounded by H1 2017 fuel cost increase. On average, Vietnam petroleum shipping stocks posted 15% increase in revenue but 22% decline in the bottom line over the first six months of 2017.