PPC: 3Q2016 business result update

PPC has been facing an uneasy FY2016 due to (1) prolonged PPA negotiation for plant PL1, (2) major maintenance of 2 units and (3) declining selling prices in CGM. However, with new contract, we expect PL1 could operate at capacity of 82% - 85% in FY2017 compared to 63% in FY2016 thanks to a surge in contracted revenue. In conclusion, we think PPC has survived its toughest time and will recover in FY2017. At today close price VND14,900/share, PPC is traded 24% discount from our target price.

FPT – Telecom segment demonstrated strong internal growth

FPT Corporation (FPT - HSX) recently announced its 9M2016 earnings. Revenue continued to grow negatively with -2.7% yoy while the PAT to parent company’s shareholders slightly improved by +4.7% yoy growth. Total revenue and profit reached VND 28,468 billion and VND 1,330 billion respectively. Accordingly, the PAT has achieved positive growth rate after declining trend last few months compared with the same period. RongViet Research maintains the recommendation to BUY in LONG TERM for FPT with a target price of VND 58,000 per share.

NCT – Strong price discount creates opportunity

NoiBai Cargo (NCT-HSX) reported 9M2016 revenue of 512 bil VND (down 14.6%yoy) and 19.4%yoy fall in PAT to 205 bil VND. This result is largely anticipated in 2016 as new industry entrant ALS put in use full capacity this year. Moreover, sharing of international air freight clients to ALS started to make a toll in NCT’s operating margin which has gone down 3.6 percentage points in 9M2016 compared to last year ‘s similar period.

HT1 – Good business results

According to a recent report of Vietnam National Cement Association (VNCA), the total consumption of cement and clinker was 55.55 million tons, up 7% over the year. In particular, domestic sales made of for the largest proportion (78.7%) and had a positive growth of about 10%. Due to fierce competition with China, exports have been slowing down and had a slightly negative growth at 2%. Despite oversupply remains but many large enterprises such as Ha Tien 1 Vicem Cement JSC (HSX: HT1) still maintained its good business trend.

IMP - Strong growth in Q3

IMP has announced Q3 earning result, in which net revenue and NPAT was VND 215bn (+17%) and VND 23bn (+31%), respectively. Summing up 3 quarters, the company just completed 59% of total revenue plan and 62% of PBT 2016 plan.  

The urge of flood insurance to narrow the insurance protection gap in Vietnam

Flood catastrophe has appeared very often on media. However, none of non-life insurance company introduces any products relating to flood protection.

PHP – Improving profitability

RongViet Research today would like to bring to investors’ attention a brief overview on the prospect of Port of Hai Phong JSC (PHP-HNX). Together with SaiGon Newport (in South Vietnam), PHP is dominating the seaport market share in the North. These two players annually serve half of the national throughput. PHP, in particulars, handles 1/3 of total cargo passing through Hai Phong area.

Coking coal price rally: Basic oxygen furnace maintains advange

Hard coking coal price has grown by over 180% yoy whereas those of iron ore and scraps went up by just above 10%. Due to the steel production cap policy by the Chinese authority, coking coal mines in the country had to reduce their working days per year since April 2016, leading to a shortage and a consequent 130% increase in hard coking coal price (coking coal’s major input) in the most recent 3 months, from USD 95 per ton to USD 226 per ton. Such price rally in a short time period is going to strongly push COGS for HPG, the largest Vietnamese BOF steel maker, as the material makes up to 30% of the rebar’s production cost for the company.

PAC – Positive earning in 3Q2016

RongViet Research has just discussed with the representative of Dry Cell and Storage Battery JSC (PAC - HSX) about the recent business result. According to the meeting, the most notable points of the company operation include 3Q earning result, the increasing trend of raw materials’ price and new shareholder. Below are some updates and comments about the company business result:

NT2: 9M2016 business result update

PV Power NT2 (HSX: NT2) announces its 9M2016 business result today. Accordingly, NT2 generated 428.6 mn kWh and produced c. VND581 bn in term of revenue in Sept 2016.

LCG – Good news from Binh Tien Street

According to Decision No. 5346/QĐ-UBND of the People’s Committee of HCMC, Licogi 16 JSC (HSX-LCG) will be one of the investors of the Binh Tien BT project. The two-kilometer Binh Tien street, which connects District 8 (Ta Quang Buu Street) and Binh Chanh District (Nguyen Van Linh Street), will be developed in a period of 24 months by a joint venture between LCG and BCI under the build-transfer (BT) framework.  

HAH – Rising competition dampening terminal handling charges

Hai An Transport & Stevedoring JSC has released its estimated 9M2016 earnings result. For the year ended September, the firm recorded 366 bil VND (-3%yoy) and 96 bil VND in PAT (-15%yoy). Apart from anticipated reduction in refrigerated container (reefer) volume, seaport operators in Hai Phong area faced tough challenges to add growth to earnings this year as increasing competition between ports dampening Terminal handling charges (THC) and hence ports’ performances.