[BSC Vietnam] Divestment & M&A Are Back (MWG) 11.08.2017 (DELAYED)

Aug. 14, 2017 12:18 AM ET|Includes: Vietnam Enterprise Investments Ltd. (VTMEF)

Summary

  • Friendly remind about The Asiamoney’s Brokers Poll 2017 will conclude next week. To vote for BSC please follow the link. Thanks for your support, it means a lot to me and our team at BSC.
  • After significant drop on Wed, the market cool down in the last 2 section with decreasing liquidity. Derivative market have a good and quite open day with the participant of the
  • Macro flash: (1) The resolution on the processing of bad debt No. 42 of credit institutions will come into effect from 15/8/2017 to 15/8/2022, (2) The derivatives market was opened on 10th Aug
  • “State Divestment” is back after 6 months. SCIC announced the plan of selling 48 million share of VNM (3.33%) valued at ~ USD 290 million trigger the divestment process
  • HDC (BUY TP 18.300) also will have an auction of SCIC next week. Beside the top 3 names (VNM, SAB, and BHN), investor can keep their eyes on NTP, BMP, DIG, PVI, DHG, DMC, DIG and VCG.

This is a friendly remind about The Asiamoney’s Brokers Poll 2017 will conclude next week. To vote for BSC please follow the linkThanks for your support, it means a lot to me and our team at BSC.

·         After significant drop on Wed, the market cool down in the last 2 section with decreasing liquidity. Derivative market have a good and quite open day with the participant of the Deputy PM. Wti oil tumbled 2% to $48.59/bbl send energy to the bottom of today performance (-1.73%). On the green side, Stocks led by Material (+0.8%) and IT (+1.00%) thanks to the recovery of sector leader HPG (BUY TP 39,200) and FPT (BUY TP 60,228). Finally, FPT announced their successfully divest 35% the retail segment this afternoon (link).

Today’s Markets:

·         Indexes, VN-Index -0.17%, HNX-Index -0.11%, Upcom -0.02%

·         Active: HOSE: SBT, FIT, TSC, OGC, HQC.   HNX: KLF, SHB, PVX, PVS, CEO.

·         Foreigner, Buy: BHS, SBT, BID, HPG, CTG.  Sell: FIT, SSI, NVL, VNM, ROS.

·         Notice stocks: SBT, ROS, BHS, HPG, PIV, ACB, VND

·         Trading volume: ~ 223.94  million shares

·         Trading value: VND 3742.79 ~ 166.78 USD mil

·         Foreigner transaction Net: 3.99 mil USD Sell 9.18USD million and Buy 13.17 USD million

 

Corporate update:

 

·         MWG  Mkt Cap VND 31,669 bil – Current price 105,800 (+0.6%). The top retailer of Vietnam is planning to increase fund from VND 1,000 bil to VND 2,500 bil for M&A. The details has not yet disclosed, but rumor spread that they will target top electronics retailer in the north and pharma retailer. In the first half, MWG’s revenue risen 59%to VND 31,241 bil while EAT reached VND 1,070 bil (translate to 28% growth). Our analyst target MWG at VND 119,232. We will have our update soon.

·         Thegioididong.com – to continue its steady growth with the installation of 4G telecommunications technology with 62 new stores (total 1013 stores) and 25% growth in revenue.

·         “Dien may Xanh” – the only electronics retailer to present at 63 provinces and cities of Vietnam. In 6M2017, MWG opened 148 more new stores of ĐMX, bringing the total number of Dien May Xanh to 404 stores. Rev of ĐMX in 6M reached VND 13.381 bil (+140%yoy)

·         “Bach hoa Xanh”. There was 90 new store opened, bringing the total number of BHX to 138 stores. Rev of BHX reached VND 402 bil in 6M2017.

Comments:                                                         

 

 

·         The macro flash: (1) The resolution on the processing of bad debt No. 42 of credit institutions will come into effect from 15/8/2017 to 15/8/2022, (2) The derivatives market was opened on 10th August (the futures contract of VN30) and (3) the PM cite new credit growth target raise from 18% to 20%. These above news seem offset the pullback of rumor on former bankers lately. Investors who immune system have been trained through up and down since 2013 show more resilient to bad news. But like in our last email, you can still smell caution in the air.

 

·         “State Divestment” is back after 6 months. SCIC announced the plan of selling 48 million share of VNM (3.33%) valued at ~ USD 290 million trigger the divestment process after the quite first 6 months. HDC (BUY TP 18.300) also will have an auction of SCIC next week. Beside the top 3 names (VNM, SAB, and BHN), investor can keep their eyes on NTP, BMP, DIG, PVI, DHG, DMC, DIG and VCG... (mostly on the SCIC divestment list) Though the timing has yet determined but stocks prices would have many changes when the related information gradually published. History told that in most case the divestment bring good effects to the company’s business and benefited the shareholders. Theme of state divestment should be interesting from this quarter.

Have a nice weekend

 

Cheers

 

Long Tran

 

Link: https://seekingalpha.com/instablog/13489352-long-tran-thang/5026763-bsc-vietnam-divestment-and-m-back-mwg-11_08-2017-delayed

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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