[BSC Vietnam] When You Watch Your Sports Team Play, They ALWAYS LOSE Theory (ACV, VIC) 25.08.2017 (DELAYED)

Summary

  • Indexes, VN-Index +0.24%, Trading value: VND 4202.77 ~ 187.2USD mil (slightly higher than yesterday). Energy sector (+1.81%) recover and lead the market, followed by real estate (+1.41%)
  • ACV (VND 57,500/share, +4%, market Cap of USD 5 bil). The ministry issued the decision increasing fee of many airline services which includes passenger services, ACV was traded at EV/EBITDA 2017
  • VIC (VND 44,550/+2.3%, market Cap of USD 5 bil). The company has update on their real estate and retail segments. 4Q2017, VIC will begin to sell a large Vincity project in Hanoi or HCM city
  • The storm of speculative stocks. East Asia countries was hit by the strong Hato storm this week. There also is a storm hitting the Vietnam market this week call the storm of speculative stocks.
  • It seem that the only news is that the Vietnam football team was beaten by 3-0 yesterday. There is a huge theory that “When you watch your sports team play, they ALWAYS LOSE”.

Dear  Valued clients,

  • Energy sector (+1.81%) recover and lead the market, followed by real estate (+1.41%) thanks to big stocks such as VIC, DXG, and VCG… Financial and industries sectors had a slight 0.5% gain while Utilities and IT had a reversed day drop of close to -0.5%.

Today’s Markets:

·         Indexes, VN-Index +0.24%, HNX-Index +0.34%, Upcom +0.17%

·         Active: HOSE: FLC, HAI, HQC, FIT, and DXG.  HNX: PVX, KLF, SHB, VCG, ACB.

·         Foreigner, Buy: HSG, VIC, FLC, VNM, HPG. Sell: HT1, SKG, SCR, NVL, and HBC.

·         Notice stocks: FLC, HAI, HPG, DXG, FIT, VCG, ACB, CVT, PVX

·         Trading volume: ~ 287.34 million shares

·         Trading value: VND 4202.77 ~ 187.2USD mil (slightly higher than yesterday)

·         Foreigner transaction Net: 2.06 mil USD Sell 8.83 USD million and Buy 10.89 USD million

Corporate update:

 

·         ACV (VND 57,500/share, +4%, market Cap of USD 5 bil). The ministry of transport issued the decision 2345/QĐ-BGTVT increasing fee of many airline services which includes passenger services, security and landing. We projects that the revenues and profit of ACV will go up after the adjustment, by approximately VND 207 bil in 2017, by VND 1,059 bil in 2018 and by 1,423 billion in 2019. Therefore, net income (excluding exchange rate fluctuation) will be VND 4,400 billion in 2017, VND 5,996 billion in 2018 and VND 6,921 billion in 2019. On 18 August, 2017, ACV was traded at EV/EBITDA 2017 of 12.25x, lower than median of global listed airport corporation (15.39x).

·         VIC (VND 44,550/+2.3%, market Cap of USD 5 bil). The company has update on their real estate and retail segments.

o   “Real estate:  In 4Q2017, VIC will begin to sell a large Vincity project in Hanoi or Ho Chi Minh city or a few project in the suburban. Vincity is in the low price market segment so in order to maintain a high margin VIC will take advantage of low cost suburban land and equip the apartments with appropriate applications.  Project Can Gio has area of 600 ha and VIC is asking the permit to expand the project. The government is building the bridge which will connect the project with Ho Chi Minh’s downtown and help reduce travel time to 1 hour. The company expect to begin selling the project in 2017.

o   Vincom Retail:  VIC intends to IPO the company combined with private placement. Right now VIC controls 80% stake in Vincom and 20% is in the hand of Warburg Pincus and Credit Suisse in term of convertible preferred stocks. Vincom Retail contributes 2600-2700 Bil. EBT in 1H2017 excluded 2000 Bil revenue of few real estate sales and preferred stock dividend. The internal stores, owned by VIC, account for 30% area and 25-30% of revenue of Vincom Retail commercial centers.

Comments:                                                         

 

  • The storm of speculative stocks. East Asia countries was hit by the strong Hato storm this week and the footage is unbelievable (link). There also is a storm hitting the Vietnam market this week call the storm of speculative stocks. Retail Investors are falling for that kind of huge volume and volatile stocks including FLC, ROS, HAI, FIT, AMD, and PVX….
  • It seem that the only news is that the Vietnam football team was beaten by 3-0 yesterday. There is a huge theory that “When you watch your sports team play, they ALWAYS LOSE”. I don’t know if you share the same theory about your favorite team. For me, I have stopped watching the national football team play for years. And as long as I can remember, they still lose since then:D. Anyway, it is Friday already. Have a nice weekend.

 

Cheers

 

Long Tran

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