[BSC Vietnam] Hanoi Is In A Hurry Now, So How About You (NLG) 28.11.2017 (DELAYED)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • While wti slightly retreated and Bitcoin approach 10k mark. In Vietnam, 6/10 sector end in the red.VN-Index +0.28%, HNX-Index -0.47%,  Upcom +0.55%. Trading value: ~ 430.26 USD mil. (DIG USD 110 mil).
  • NLG (VND 28,800, +0.2%, market cap USD 200 million). Our analyst forecasts the parent company’s FY2017 profit is about VND510 billion (+ 47.7% yoy), slightly ahead of business plan.
  • Hanoi is not in a hurry. It is the email title of Aug 21st to you. At that time, our recommendation is  NTP, BMP, PVI, DHG, DMC and DIG (not mentioned VNM, SAB and BHN).
  • Finally we have the first big state divestment form a Ministry this year. Today DIG volume turnover increase to 128 million stocks (~ USD 110 mil ~ 28% VNindex turnover).

Dear Valued clients and partners

·         Jerome Powell in prepared remarks for his confirmation hearing for Federal Reserve chairman, expects interest rates to rise “somewhat further.”While wti slightly retreated and Bitcoin approach 10k mark. In Vietnam, 6/10 sector end in the red, lagged by energy (-2.07%), IT and health care (both -1.0%). At the same time, Consumer staple (+1.2%) balance the downside effect thanks to SAB and MSN.

Today’s Markets:

·         Indexes, VN-Index +0.28%, HNX-Index -0.47%,  Upcom +0.55%

·         Active: HOSE: DIG, FLC, HQC, HAG, MBB.   HNX:  SHB, VCG, KLF, PVS, PVX.

·         Foreigner, Buy: DIG, VJC, VNM, HPG, VCB  Sell: FLC, VRE, BID, SRF, VSC.

·         Notice stocks: DIG, VJC,  REE, SBT, FCN, VCG, VGC, KLF

·         Trading volume: ~ 421.63  million shares

·         Trading value: VND 9,649.94 bil ~ 430.26 USD mil (DIG USD 110 mil)

·         Foreigner transaction Net: 54.15 mil USD Sell 72.61 USD million and Buy 126.76  USD million

·         Derivative market Trading value: VND 944 billion ~ USD 42.09  million,

 

Corporate update:

 

 

·         NLG (VND 28,800, +0.2%, market cap USD 200 million). Our analyst forecasts the parent company’s FY2017 profit is about VND510 billion (+ 47.7% yoy), slightly ahead of business plan. EPS of 2017F is estimated at 3,243 VND / share, P / E of 2017 = 8.7 times based on the closing price of 11/24/2017 share is 28,400 VND / share. The company are number one on affordable housing in the south which have potential to grow in coming year thanks to great affordable demand.

 

Update 9 month earnings. Accumulated 9 months, net revenue came to VND1,637 billion (-2.0% yoy), gross profit increased sharply to VND754.9 billion (+ 61.3% yoy), equivalent to a gross profit margin increased from 28% in 9M16 to 46.1% in 9M17. As a result, parent company shareholders’ result of 9T2017 reached VND351.9 billion, an increase of 2.16x compared to the same period last year.

 

The total volume of products sold in 9T2017 was 1,481 products (+15% yoy). However, in terms of value, the total value increased sharply to VND2,729 billion (+115% yoy) thank to high value product from valora products (villas). Total value of Valora products (villas) accounts for about 49% of the value of products sold in 9T2017, Flora products (apartment buildings) accounted for about 32%.

 

Transferring Hoang Nam and Thao Nguyen projects are expected to contribute a large number of profit in 2018 similar to Nguyen Son project. According to our estimates, the total re-estimated value of the project is estimated at VND 900 billion, which is expected to record about VND 200-300 billion of gross profit in 2018. In addition, NLG’s revenue of real estate segement in 2018 will come from some projects as (1) Camelia Gardern, (2) Fuji Residence, (3) Kikyo Residencen, (4) Daila Garden, (5) Mizuki Park & Nguyen Son, (6) Hoang Nam , (7) Thao Nguyen (Greenhill).

 

Comments:  

 

·         Hanoi is not in a hurry (Ha Noi khong voi duoc dau) linkIt is the email title of Aug 21st to you. At that time, our recommendation is that NTP, BMP, PVI, DHG, DMC, and DIG (not mentioned VNM, SAB and BHN) should be strictly followed. VNM sale is done. DIG  (latest update here) which we mentioned 3 times in our email to you on 05th  May 2017 (I have to reup it); stressed on the stock again on 21st Aug 2017; and in our latest email on24th Nov 2017. Look at what happen after 3 months, it is seem that Hanoi is in a hurry now, so how about you.

·         Finally we have the first big state divestment form a Ministry this year. Today DIG volume turnover increase to 128 million stocks (~ USD 110 mil ~ 28% VNindex turnover), a little bit higher than Ministry of Construction’s divestment amount of 118 mil shares. Due to heavy market, our team is under huge pressure of market share’s KPI this year L so sad.

Picture of the day:  DIG on The Rectangle Map of VNindex’s value trading (28th Nov 2017)

Source: Cafef.vn (sorted by TRADING VALUE)

Cheers

Long Tran

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