6 Months of Vietnam Market in a Minute (NTP) 05.07.2017

Dear Value clients and partners,

  • Asian shares were mixed, with China posting slight gains on Wednesday, but Tokyo and Sydney hit by political risk concerns. In Vietnam, Industry sector led the index by +1.54%, follow by utilities (+0.53%), health care (+0.41%) and finance (+0.35%). The loser side lagged by Consumer Discretionary (-0.42%) while most other sectors nearly stand still.

Today’s Markets:

  • Indexes, VN-Index +0.36%, Hnx-Index +1.44%, Upcom -0.45%
  • Active, HOSE: HQC, ITA, OGC, FLC, HAI.   HNX: SHB, PVX, DCS, KLF, VIX.
  • Foreigner, Buy: CTD, ROS, PTB, CII, HSG . Sell: HPG, SSI, AAA, MSN, BMP .
  • Notice stocks: HQC, ITA, OGC, HAI, FLG, VHG, QCG, MBB, PVX, DCS, KLF, VIX
  • Trading volume: ~287.0 million shares
  • Trading value: VND 4368.5 ~ 194.6 USD mil
  • Foreigner transaction Net: 0.7  mil USD. Sell 14.5 USD million and Buy 15.2 USD million

Corporate update: 

  • NTP Tien Phong Plastic (VND 65,800/share, -0.2 %, market cap of USD 256 million). Our analyst had a visit to NTP lately and maintain BUY recommend on NTP at target price of VND 89,000 /share. NTP is one of the leaders in manufacturing plastic pipe, accounting for about 70% of North market share. Business result is expected to improve strongly after SCIC divestment (which is planned in 2017) due to lower discount rate to distributors. The company gave its distributors VND 517 billion while profit before tax was VND 447 billion in 2016. We forecast profit after tax of NTP will be VND 442 billion (no change in discount policy) and will be VND 557 billion (up by 26% yoy) if distributors expenses / revenue down to 9% from 11.87% in 2016.
  • 1H business result. Due to fiercer competition and slowdown in demand growth, NTP’s pipe output increased by 2% in 6M2017, in which, PVC decreased by about 9-10%, while HDPE and PPR went up. Therefore, profit before tax of the firm grew by 2%.

4076_ong_nhua_pvc_c1

Comments:                                             

  • Macro flash. GDP increased by 6.17% (Q2) and 5.73% in first half. PMI standed at 52.6 (above 50 for all year). CPI slow down as total retail sales up 11.6% YoY. Register FDI reached USD 19 billion up 54.8%, led by Japan, Singapore and Korea. The trade deficit was USD2.70 billion while export climb to 97,78 billion USD (+18,9% yoy). The interbank exchange rate fluctuated around 22,700 VND / USD (~-0%) and Interest rates was stable thanks to the abundant liquidity.
  • 6 Months of Vietnam Market in a Minute. Vnindex rised to 47 point (+16.8%) while HNXindex grew by 23.7%. Market capital reached USD 92 billion (HSX+HNX) and over USD 100 billion (HSX+HNX+Upcom). Daily liquidity increased to USD 171 million (+52%). P/E of VN-Index and HNX-Index reached 11.99 and 16.55 respectively. Foreigner net bought USD 370 million, thi biggest net buy value for quite sometime. The numbers might suprise inverstors but they are quite in line with what we mentioned at the end of last year link. „The market need a Small correction at the end of 2016, and a big jump in 2017 thanks to New kid on the block (market cap and index performace)”

 

Cheers

 

Long Tran

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