[BSC Vietnam] August In A Minute (HUT) 05.09.2017 (DELAYED)

Sep. 9, 2017 8:31 AM ET|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • Indexes, VN-Index +0.45%, Trading value: VND 3857.72~ 171.92USD mil, Foreigner transaction Net: 3.03 mil USD
  • Our analyst are bullish on Gas (+2.5%) and Material (+1.5%) which mostly are steel makers (HPG, HSG and NKG). Update on CMG, LAS, MBB, PHR, QBS, REE
  • HUT  (VND 11,700/share, +0.2%, Market cap USD 124 million). Hence, HUT’s business result in the second half of 2017, especially in Q4/2017 will be much better than the first half of 2017
  • The good news: Credit growth 10.1%, PMI 51.8, USD 0.4 bill rise in net export. Exchange rate stable as interest rate. The Bad news: the CPI was back to 0.9%, lead to 3.3% and FDI slower .
  • August in a Minute. Vnindex -0.1% HnIndex +2.7%. the total market cap USD 95 billion (thanks to VPB), daily liquidity USD 194 million. Derivative have its’ debut month. Foreigner net brought USD 54 million in Aug (separate Vietnam from the other net sell in Asian markets),

Everybody in Vietnam was heading to work after long holiday weekend while North Korea appears to be readying a launch for a ballistic missile. The Vnindex have a slight gain section, led by energy (+1.31%), real estate (+0.74%) and material (+0.45%). Our analyst are bullish on Gas (+2.5%) and Material (+1.5%) which mostly are steel makers (the top 3HPGHSG and NKG) At the same time, the lagged side of the board were Consumer Discretionary (-0.85%) and healthcare (-0.99%).

 

Today’s Markets:

·        Indexes, VN-Index +0.45%, HNX-Index +0.56%, Upcom -0.05%

·        Active: HOSE: FLC, SCR, HQC, FIT, HAI. HNX: PVS, HUT, KLF, SHB, PVX.

·        Foreigner, Buy: VNM, PLX, VCB, HPG, BID. Sell: MSN, NVL, VIC, STB, SKG.

·        Notice stocks: NVL, VNM, SCR, VJC, VCB, VCG, PVS, HUT

·        Trading volume: ~202.1 million shares

·         Trading value: VND 3857.72~ 171.92USD mil

·         Foreigner transaction Net: 3.03 mil USD Sell 14.85 USD million and Buy 17.88 USD million

Corporate update:

 

·         HUT  (VND 11,700/share, +0.2%, Market cap USD 124 million). We suppose 2017 is a good year for HUT. In the first quarter of 2017, HUT recorded VND 630 billion revenue (+10,5% yoy) and VND 130 billion profit after tax (+55% yoy) as a result of VND 399 billion revenue from 2 Real Estate projects including Foresa Villa and Xuan Phuong residence . However, in the second quarter of 2017, the total revenue and profit after tax were only VND 406 billion (-33% yoy) and VND 50 billion (-33% yoy) respectively because the Real Estate’s revenue dropped by 65%. The reason for this drop is that HUT’s Real Estate projects were being under construction and their revenues will be recognized in the second half of 2017.

Hence, HUT’s business result in the second half of 2017, especially in Q4/2017 will be much better than the first half of 2017 with a main motivation from 2 Real Estate projects consisting of Xuan Phuong Residence and South Building with a sale rate of 100% which are expected to generate the total revenue of VND 3.300 billion in 2017. Additionally, in Q4/2017, a BOT Highway 10 Hai Phong will come into operation with the expected revenue and profit of VND 90 billion and VND 15 billion respectively.We estimate that 2017 revenues and net profit will be at VND 4.600 billion and VND 550 billion, respectively, then 2017 EPS will be VND 2.287/share.

Comments:                                                         

·         August in a Minute. Vnindex slightly fell -0.1% while HnIndex rinsed +2.7%. the total market cap of 2 main indexs reached USD 95 billion (thanks to VPB), daily liquidity flatted at USD 194 million. Derivative have its’ debut month with increasing liquidity, up to now there are only 7 Broker houses who could provide the services. Foreigner net brought USD 54 million in Aug (separate Vietnam from the other net sell in Asian markets), contributes to the total net buy of USD 471 million ytd. Our updates and reports in Aug including CMG (Link), LAS (Link), MBB (Link), PHR (Link), QBS (Link), REE (Link) , HDC (Link), FPT (Link). Most stocks performed quite well.

·         The macro flash. The good news: Credit growth reached 10.1%, PMI stand at 51.8, Export outgrew import and lead to USD 0.4 bill rise in net export, narrow the trade deficit. Exchange rate was quite stable as the interest rate keep being low for the month. The Bad news: the CPI was back to 0.9%, lead to 3.3% and FDI was kind of slower than last year.

Cheers

Long Tran

https://seekingalpha.com/instablog/13489352-long-tran-thang/5039187-bsc-vietnam-august-minute-hut-05_09-2017-delayed

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