IMP – New factory is ready to operate

The stock is trading at 20x P/E 2018, while earnings growth in the next two years is not very outstanding. Thus, the high valuation makes IMP not appealing to individual investors. However, with four EU-GMP factories, IMP appears very attractive to many strategic partner. Nevertheless, the management prefers a partner that could contribute in terms of science and technology to one that is only seeking outsourcing. Therefore, it probably takes times to find an appropriate one. This means unlike DHG or DMC, IMP currently lacks a catalyst for its stock price.

We maintain a target price of VND 53,000 for IMP. The company plans to pay a 20% cash dividend this year.

STK – Recycled yarn is still a top priority

We maintain our BUY recommendation on this stock. However, adjust the target price slightly to VND 22,300 per share compared to the previous recommendation price of VND 24,300 per share due to concerns about the impact of crude oil prices that may depress its core profit.

The wood industry: Optimistic, but cautious

Vietnamese wood and wooden products exports have experienced a successful year with a total export value of USD 8.9 bn, indicating a growth rate of nearly 16%. Except for 2016, a year with the modest growth rate of only 1.1%, from 2009 to 2018, the annual growth rate of wood and wooden exports value always reached double digits, and the average growth rate of the last 10 years has been 15%.

VSC – Update 2018 Result and 2019 Forecast

VSC announced FY2018 financial statement with impressive revenue and NPAT growth of 30% and 27% respectively, thanks to the incremental contribution from VIP Green port (UpCOM: VGR).

Updates on MWG - Constantly changing to move forward

Overall, we maintain a positive view for MWG. The company has been continuously improving to keep the growth rate at a high level. The dominant market share in electronics sector and extensive store system help MWG to stand firm against the fierce competition from e-commerce websites. In addition, Bach Hoa Xanh is still on the right track and other markets outside Ho Chi Minh city are delivering optimistic signs. We maintain our BUY recommendation on MWG shares, with a target price of VND 125,000 / share.

Updates on Vietnam Trade

Recently, the Customs has published the trade data which January’s trade balance was surplus at USD 860 million, in contrast to the deficit of USD 1 billion in the first half of the month. While the domestic sector’s trade deficit has shrunk, the FDI sector keeps positive. However, trade growth slowed down, highlighted by both of export and import growth. January’s trade data implies some meaningful insights, including 1) Export revenue from Chinese market dropped strongly, 2) Export revenue from North America markets brightened and 3) The rise of Hai Phong and Hai Duong cities on Vietnam’s trade map.

View on US-China Trade Talks

• President Trump mentioned an extension of 60 days for the US-China negotiation as an affirmation that the US is serious about finding a deal with China.
• A comprehensive agreement between the US and China will be difficult to achieve in a short time.

HDB – Update on 2018 Business Performance

Overall, HDBank is still expanding its loan portfolio effectively with the focus on retail and SME segment while operating cost and asset quality are controlled closely. However, it should be noted that the current strategy of HDBank is dependent on credit volume growth, which is very sensitive to the credit tightening policy of SBV. In case the merger with PGBank is approved, it is more likely that the bank will have higher room for credit growth.

Our current target price for HDB is VND34,000, equivalent to a P/B forward of 1.8x. The stock is currently trading at VND30,400 (closing price in Feb 17th), equivalent to a P/B forward of 1.6x. Combined with the expected VND 1,000 cash dividend in the next 12 months, the total expected return is 15.1%. Therefore, we recommend to Accumulate the stock.

GMD – Update 2018 Result and 2019 Forecast

GMD FY2018 financial statements was strongly influenced by capital transfer activities and in line with our expectations.

Updates on HDG

For FY2018, Ha Do (HSX: HDG) recognized accumulated net revenues of VND 3.203 billion (+39% YoY) and net profit after tax of VND 608 billion (+241% YoY). In general, the company fulfilled its full year’s profit guidance propelled by the strong contribution of residential business.

DHG – Update on 2018’s Business Result

Revenue and Net profit in 2018 was VND 3,888 Bn (-4% YoY) and VND 654 Bn (+2% YoY), respectively. EPS 2018 reached VND 4,449 (+2% YoY).

KBC - Leases keep soaring

Kinh Bac City Development Holding Corp (HSX: KBC) released its FY2018 results with net revenue of VND2,506 billion (+99% YoY) and NPATMI of VND747 billion (+28% YoY). The bottom line would increase about 140% YoY if the previous one-off gain, from selling the Lotus, was excluded.