[BSC Vietnam] Frontier Market Vs Emerging Markets (PNJ) 25.01.2018 (DELAYED)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • It is seem that investors are rushing to get on boat as the trading value reaches All Time High of USD 724 million (sound good for a frontier market right).
  • PNJ (VND 145,200 per share, market cap, USD 700 million, P/E FW 16.3x, P/B FW 3.8, FO: 49%). Our analyst is bullish with the stock and targets it at VND 180,000 per share.
  • Frontier market vs emerging markets. The Vietnam Stock Index increased 48 percent in 2017, outperformed most stock indexes as investors bought into the country’s rapidly-growing economy.
  • Vietnam vs Uzbekistan in 2018 AFC U-23 Championship on Sat 27th Jan 2018.(we have never been in any final yet :D, not even passed the the first round before 2018).

Dear Valued clients and partners

·         HSX open after 2 day of TA closing. It is seem that investors are rushing to get on boat as the trading value reaches All Time High of USD 724 million (sound good for a frontier market right). Healthcare and Material are all down over 2% while other defensive looks unchanged. The rest of the sectors climb, led by finance (+4.52%), Utilities (+2.5%) and energy (+2.13%).

Today’s Markets:

·         Indexes : VN-Index 1.58%, HNX-Index 0.29%,  Upcom 0.05%

·         Active : HOSE: HPG, STB, VPB, VIC, MBB.   HNX: VCB, PVS, VGC, SHS.

·         Index movers : Leader: VCB, GAS, BID, VJC, MSN  Laggard: VNM, VRE, HPG, ROS, SAB

·         Foreigner, Buy : VIC, DXG, VCB, HDB, CII.  Sell: HPG, BCI, HAG, SKG, DHG.

·         Notice stocks : VPB, SSI, VIC, CTG, HAG, PLX, SBT, VGC, SHB, DVN, LPB.

·         Trading volume : ~ 630.1 million shares

·         Trading value : VND 16,449 bil ~ 724.7 USD mil

·         Foreigner transaction Net: 32.9 mil USD Sell 95.6 USD million and Buy 128.5 USD million

·         Derivative market: Trading value: USD 96.9 million ; VN30F1802 @  1119.00; VN30F1803 @  1133.00; VN30F1806 @  1142.30; VN30F1809 @  1182.20.

Corporate update:

 

·         PNJ (VND 145,200 per share, market cap, USD 700 million, P/E FW 16.3x, P/B FW 3.8, FO: 49%). Our analyst is bullish with the stock and targets it at VND 180,000 per share. The aggressive expand in their store network is the key point of success. PNJ has the largest store network of 260 as the end of November 2017. PNJ expected that in the end of April/2018 total number of store will reach 300 stores, equivalent 40 of store opening.

·         BSC expected to achieve more than 20% of SSSG in 2018. SSSG accelerated from 8% in 2016 to 22% in 9M2017 thanks to the contribution of number of store opening, especially that the process of restructure the supply chain was successful. Its supply chain is learning from Wal-mart and H&M Accessories’s network.

·         The country top jewelry producer & retail’s 2018 business result. PNJ’s revenue estimated 13,337 billion VND, up 26% YoY,. Gross profit was 2,474 billion (+30% YoY). The gross margin in 2018 increased from 18.1% in 2017 to 18.7% thanks to the higher contribution of gold jewelry retail. EBT reached VND 993.5 billion (+32% YoY). EPS 2018F = 8,271 VND per share.

 Comments:  

  • Frontier market vs emerging markets. The Vietnam Stock Index increased 48 percent in 2017, outperformed most stock indexes as investors bought into the country’s rapidly-growing economy. Vietnam is technically still classified as a frontier market by MSCI. On the other end of the spectrum, Pakistan (newly emerging market) tumbled more than 15 percent in 2017. Other recent upgrade emerging markets such as Qatar, UAE did not perform well ether.
  • Vietnam vs Uzbekistan in 2018 AFC U-23 Championship on Sat 27th Jan 2018.  I have great news for VN fan. History is on our side, Vietnamhas never lost in any final football match in Asia tournament (cause we have never been in any final yet :D, not even passed the the first round before 2018).
  • BSC’s 2018 reports on Macro &MarketSector review and sector outlook. We hope those reports can suggest few Ideas for 2018. The English version will be available soon. Thanks for your support and comments.

Picture of the day 25th Jan 2018After Vietnam won over Qatar  

Source: facebook MocPhong

 Cheers

 

Long Tran

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