[BSC Vietnam] VN30 And Index Funds (FPT) 22.01.2018 (Delayed)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • Margin lending: The SSC announced that 22/51 securities companies (counted for 80% of margin lending) agree to raise the margin lending rate from 50:50 to 60:40.
  • FPT (Mkt cap VND 30,313.18 bil – PE FW 12.81x – PB FW 2.11x – FO 49%). As usually, our analyst are bullish with FPT and Target the stock at VND 68,700.
  • VN30 and index funds. 2017, very few investors managed to keep up with VNindex’s rise of +48%. Among them are VN30 index funds who either invest in VN30 or tracking them.

Dear Value Clients and partners;

·         Vnindex could not close the ATC section today due to some technical issue. The open of tomorrow depend on the price will be chosen to for today’s closing. So we currently use the most updated data of the day for your reference. 9/10 sectors rise, led by material (+4.29%), IT (+3.09%). The most underperformed sectors are Healthcare with -2.0% down.

Today’s Markets:

·         Indexes : VN-Index 2.39%, HNX-Index 1.22%,  Upcom -0.27%

·         Active: HOSE: HPG, SSI, VNM, GAS, CVT.   HNX: PVS, VCG, SHS, DHT.

·         Index movers : Leader: GAS, VNM, VCB, HPG, MSN  Laggard: VRE, STB, KDC, CTD, SBT

·         Foreigner, Buy: SSI, HPG, VCB, MSN, DXG.  Sell: VRE, CII, TDH, SBT, HBC.

·         Notice stocks: HVN, TCM, VIC, MSN, VCB, GAS, SBT, VCG, PVS, DVN, LPB.

·         Trading volume : ~ 357.2 million shares

·         Trading value : VND 8898.5 bil ~ 392 USD mil

·         Foreigner transaction Net: 20.4 mil USD Sell 34.6 USD million and Buy 55.0 USD million

·         Derivative market  Trading value: USD 96.3 million,  VN30F1801 @  1089.80; VN30F1802 @  1109.90; VN30F1803 @  1125.00; VN30F1806 @  1136.70

Corporate update:

 

·         FPT (Mkt cap VND 30,313.18 bil – PE FW 12.81x – PB FW 2.11x – FO 49%). As usually, our analyst are bullish with FPT and Target the stock at VND 68,700. FPT is one of the 3 stocks from VN30 whose valuation still looks very attractive (beside REE and HPG). Investment highlights:

o   Divesting in Retail and Distribution Segment, becoming a Software – Telecom Company, re-rate PE = 15.4x for the year 2018  (in the year 2017, we estimate FPT will have VND 1,125 billion from divesting 40% ownership in FRT and VND 192 billion from divesting 52% in FPT Trading. EPS 2017 core = VND 4,219 and total EPS 2017 = VND 6,204, PE 2017 = 9.2x)

o   Software Outsourcing continues to be the key driver with revenue in 11M2017 of VND 5,514 billion (+18%yoy) and PBT of VND 898 billion (+21%yoy, accounting for 42% total PBT of Technology and Telecom Segments). In which, Japan is the main market, accounting for 58% total revenue and has more room for expanding

o   Catalyst: Prospect from the divestment of SCIC in 2018, listing FRT on the HSX in April 2018 and new software contract (said their first USD 100 million contract)

Comments:      

 

·         VN30 and index funds. 2017, very few investors managed to keep up with VNindex’s rise of +48%. Among them are VN30 index funds who either invest in VN30 or tracking the Vn30 index (55.3% in 2017). We noted that VFMVN30’s NAV reached VND 4,100 billion (~ USD 183 million) to be the number 3rd ETF invested in Vietnam Stock market. The fund’ NAD have been increasing 4 times since Q3 2017. That is explain why last Friday, the market was strongly affected by VN30 half year review (inclusive of PLX, VJC, exclusive of PVD, KBC)

·         Margin lending: The SSC announced that 22/51 securities companies (counted for 80% of margin lending)  agree to raise the margin lending rate from 50:50 to 60:40. If this new decision is passed, the new minimum 60:40 leverage will be applied from the 1st of Mar 2018 which will help to cool down the market.

 

Table of the day 22th Jan 2018: VNindex at ATC today

 

Cheers

 

Long Tran

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