[BSC Vietnam] Winter Soldiers: We’ll Try Harder To Bring Vietnam Further (STB) 29.01.2018 (DELAYED)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

  • The red flows from Vietnam streets to stock board today as Vnindex is slightly down.
  • STB (VND 16,750 /share; Mkt USD 1.13 bil; P/B 1.02x, FO 15.4%). It seems that our market team is more bullish (link) than our equities team when it comes to STB.
  • in the Asian Football Confederation tournament 2018’s Final. The team lose 1:2 to Uzbekistan, after won over Qatar and Iraq. The spirit of the team is unbelievable.
  • Q4 earning updated: +19.8% (yoy). Back to the market. Up to January 27, 463 companies accounted for 63% of listed companies on the HSX and HNX published their Q4’s numbers.

Dear Value Clients and partners;

·         The red flows from Vietnam streets to stock board today as Vnindex is slightly down. 8/10 sectors fell which were lagged by Material (-2.56%), Consumer staple (-2.37%) and Finance (-2.57%). The winners were again energy (+0.68%) and finance (+3.3%)

Today’s Markets:

·         Indexes : VN-Index -0.52%, HNX-Index 0.42%,  Upcom -63%

·         Active : HOSE: VJC, CTG, CTD, MWG, AAA.   HNX: SHB, SHS, DST, VCS.

·         Index movers : Leader: BID, CTG, MBB, STB, ROS  Laggard: VNM, SAB, VCB, HPG, MSN

·         Foreigner, Buy : STB, KDC, CII, BID, PVT.  Sell: VNM, HPG, CTD, VJC, VCB.

·         Notice stocks : SHB, SBT, SSI, AAA, CTD, GEX, HPG, VCG, VIC, SCR, QNS.

·         Trading volume : ~ 386.7 million shares

·         Trading value : VND 9970.1 bil ~ 439.2 USD mil

·         Foreigner transaction Net: -11.4 mil USD Sell 1445.88 USD million and Buy 1188.2 USD million

·         Derivative market :  Trading value: ~ USD 97.5 million;  VN30F1802 @ 1093.00; VN30F1803 @  1115.00; VN30F1806 @  1125.40; VN30F1809 @1161.30

Corporate update:

 

·         STB (VND 16,750 /share; Mkt USD 1.13 bil; P/B 1.02x, FO 15.4%). It seems that our market team is more bullish (link) than our equities team when it comes to STB. The bank has enormous size compare to other private sector banks. In 9M2017, chartered capital was VND 18,852 bil (~ MBB, > ACB, SHB, EIB, TCB, VPB, HDB, LPB). Loans was VND 223k bil, deposit was VND 312k bil.  (> MBB, ACB, SHB, EIB, TCB, VPB, HDB, LPB).

 

Growth. In 2017, Total loans grew by 12.5% yoy, deposit rose by 11.5%. Operating income up 33% to VND 8,200 bil thanks to higher NIM, stronger growth of credit and services income à base for NPL solution and STB turnaround

 

Accelerating NPLs solution.

Ø  STB restructuring projects was approved by SBV in May, 2017. The project showed that at the end 2016, STB had VND 13k bil of NPLs recorded, VND 37k bil of VAMC bonds, VND 21k bil of restructuring receivable interest, VND 9.5k bil of foreclosed assets and VND 6k bil of restructuring debtsà total doubtful assets up to VND 86k bil. The project give STB 10 years to solve all these bad debts. More positively, management team expects to clear up these accounts in 3 or 5 years.

Ø  NPLs handling. At the end of the third quarter, 2017, the bank hardly settled these bad debts above. Total doubtful assets was about VND 87k bil. STB only recovered VND 1.5k bil of NPLs off balance sheet (much lower than the same period 2016 of VND 27.9 k bil). At the end 2017, the chairman Duong Cong Minh published that STB handled VND 19k bil of NPL, meet the restructuring project, in which, VND 2.8k bil from foreclosed assets liquidation, VND 2.6k bil from selling NPLs to VAMC at market price and luckily, VND 14.2k bil from recovering NPLs and receivable accounts.

Catalysts. : Earlier completion of NPL solution but solving remain NPLs is much more challenging à provision expenses

Comments:      

·         Winter Soldiers: we’ll try harder to bring Vietnam further. Last week our U23 football team gave their best in the Asian Football Confederation tournament 2018’s Final. The team lose 1:2 to Uzbekistan, after won over Qatar and Iraq. The spirit of the team is unbelievable, after 3×120 minutes matches, they played liked winter soldiers in the heavy snowed stadium. I guess that many players haven’t seen snow before, not mention playing football and skiing in -3 of Changzhou, China. Vietnam´s under 23 football squad got a rapturous welcome home Sunday from thousands and thousands of fans lining the streets. Even the PM waited for 5 hours to meet the team.

·         Q4 earning updated: +19.8% (yoy). Back to the market. Up to January 27, 463 companies accounted for 63% of listed companies on the HSX and HNX published their Q4’s numbers. Q4’s after tax profit reached 21.986 billion, up 19.8% over the same period. VCB, GAS, VPB, DHG took the top earning place of MBB, PNJ, NT2 and PGD.

Picture of the day 29th Jan 2018: Winter Soldiers in AFC cup, Changzhou, China

Kết quả hình ảnh cho san thuong chau  tuyet

Source: Vietnam24h

 

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