[BSC Vietnam] State Divestment Is Back (VGC) 13.11.2017 (Delayed)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • VN-Index +1.28%, Trading value: VND 14,340 bil ~ 631.7 USD mil, Consumer Staple and IT were on top of the leader board with 3.45%.
  • VGC (VND 22,300 per share;+0.5%; Market cap USD 430.8 million). Our analyst estimates revenue and profit before tax of VGC in 2017 at VND 9,186 billion (+12.9% yoy) and 1,025 billion (+33.3%.
  • After 11 quiet months, SCIC carry VNM auction of 3.33 per cent. The winning bidder end up buy 48,3 million of VNM’s shares  ~ USD 400 Million.
  • This week SCIC will carry roadshows for stakes sales in VCG, FPT, BMP, DMC and NTP on 16th (at HNX) and 17th Nov (at HSX). Among them, FPT and VCG are the only stocks which did not have an dominate shareholder.

Dear valued clients and partners,

The cryptocurrency plunged 15% late Saturday from nearly $6,500 to a low of $5,507, before shooting back up to near $6,400. In Vietnam, the state divestment stocks led the index rise 1.28%. In term of sectors, Consumer Staple and IT were on top of the leader board with 3.45% (thanks to FPT and VNM), followed by Energy (+2.4%), real estate (+1.74%) and Utilities (1.24%). At the same time, Material and finance suffered with -1.44% and 0.28%.

​Today’s Markets:

·         Indexes, VN-Index +1.28%, HNX-Index +0.39%,  Upcom -0.7%

·         Active: HOSE: FPT, FLC, BMP, VJC, MBB.   HNX: VCG, ACB, PVS, KLF, SHS.

·         Foreigner, Buy: VNM, VJC, BMP, HSG, VRE.  Sell: CII, MSN, DHG, SAB, HPG.

·         Notice stocks: BMP, FPT, VCG, PNJ, AAA, SSI, PVI, HCM, NTP, GAS

·         Trading volume: ~ 351.36  million shares Trading value: VND 14,340 bil ~ 631.7 USD mil

·         Foreigner transaction Net: 11.3  mil USD Sell 318.86 USD million and Buy 330.16 USD million

·         Derivative market:Total contracts: 7873 contractsTrading value: VND 677.7 billion ~ USD 30 million VN30F1711 863.5; VN30F1712 865.7; VN30F1803 877; VN30F1806 882.5

 

Corporate update:

·         VGC (VND 22,300 per share;+0.5%; Market cap USD 430.8 million). Our analyst estimates revenue and profit before tax of VGC in 2017 at VND 9,186 billion (+12.9% yoy) and 1,025 billion (+33.3% yoy).

 

In 10M2017, consolidated revenue of VGC was VND 6.452 billion (+12% YoY), profit before taxes was VND 855 billion (+59.4% YoY), accomplishing 80% and 101.3% its target respectively. Profit before taxes margin improved slightly, reached 13.25% thanks to contribution of building glass and real estate.

 

Building glass: In 10T2017, operating result of glass sector was 76% that of the previous year due to VFG ceasing operation to repair. However, supply shortage caused glass prices in 1H2017 and 3Q2017 to increase by 15% and 5% respectively as compare to the average price in 2016. Binh Duong Energy Saving Glass Factory with the capacity of 2.3 million m2 per year has been into operation since June, 2017 and now running at 60% capacity. VGC expects to raise the its occupied rate to 80% in 2018 and 100% from 2019 onwards.

 

Real Estate and Industrial Park: PBT in 10M2017 was VND 267 billion (+167% YoY). In 2017, occupied area of VGC industrial park is estimate to increase by 95 ha (not including registered area of Samsung). As mutual agreement, Samsung commits to lease about 100 ha in Yen Phong (Phase 2) allocating in 2017, 2018 and 2019. The company estimates the additional occupied area might reach 120-130 ha in 2018, mainly in Yen Phong, Dong Van IV, Phu Ha and Tien Hai. Regarding to residential real estate, VGC expects to book approximately VND 1000 billion revenue in 2017 and about VND 1.100-1.200 billion to its net sales in 2018 from projects such as Xuan Phuong, Dang Xa (Phase 2), Kim Chung.

 Comments:                                                         

·         State divestment is back. Investment topics related to “divestment” is one of our key investment theme this year (link page 3). From what happened pharmaceutical industry (DHG, DMC), the theme should never be underestimated. Lately, after 11 quiet months, SCIC carry VNM auction of 3.33 per cent attracted 19 local and foreign investors, who had registered to buy a total of 73.84 million shares. The winning bidder end up buy 48,3 million of VNM’s shares at VND 186,000 VND per share ~ USD 400 million. This week SCIC will carry roadshows for stakes sales in VCG, FPT, BMP, DMC and NTP on 16th (at HNX) and 17th Nov (at HSX). Among them, FPT and VCG are the only stocks which did not have an dominate shareholder.

·         Although, VNindex found new high this month as our TA expected (link), most small and mid-cap stocks still suffered. Our team reminds me that closed to 50% of the stocks drop in last month. We noted that few mid-cap stocks start forming a short term support and bounce back, such as DRC, CSM, EVE…

Cheers

Long Tran

 

https://seekingalpha.com/instablog/13489352-long-tran-thang/5072609-bsc-vietnam-state-divestment-back-vgc-13_11-2017-delayed

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s