Company reports

HPG - AGM Flash Notes - 26 June 2020

30-06-2020 15:46:34

Despite the recent strong performance we see limited upside potential with target price of VND 30,000/share (P/E 9.0x on FY2020 NPAT) representing only a 10% increase from the current price

ACB - Analyst\'s Note on FY2019

19-02-2020 18:14:25

Parents bank announced FY2019 results with total net interest income growing 17% to VND11.8 trillion and net fee income growing 39% to VND 1.9 trillion. 

PNJ [BUY - +16.5%] - ERP Implementation Hinders 2019 Sales Plan - Equity Update - 30 July 2019

30-07-2019 17:29:48

We reiterate our BUY rating for PNJ but revised the TP to VND 90,000 – a 16.5% upside (-3% vs. prior call of VND 93,000). The primary reason for revision is that we adjusted SSSG forecast to reflect weaker purchasing power for consumer discretionary. Below are key investment notes: §  1H19 snapshots: ERP issue hinders 2019 sales plan; margins expanded rapidly; cash flow from operation (CFO) improved thanks to optimized stock level PNJ ends 1H19 with VND 7.8trn in revenue (+5.4% YoY, completed 43% of annual guidance) and VND 597bn in NPAT (+15.7% YoY, completed 51% of annual guidance). By end-1H19, PNJ has 339 stores (+15 YTD) with flat SSSG. The low single-digit revenue growth is due to ERP issue in 2Q19 when sales declined by 8% YoY. Though we are disappointing with this incident, good news is PNJ confirmed it has resolved the issue as sales were +12% YoY in Jun-19 (TVS estimates) after -18% YoY in April & May (PNJ announces). §  2H19 outlook: unlikely to meet sales target but profit target is still secured thanks to margin upswing We adjusted our estimates for 2019 gross sales and NPAT to VND 16.4trn and VND1.1trn respectively (-10% vs prior estimates) due to 1H19 underperformance. This implies we expect PNJ to miss sales target of VND 18.2trn though we estimate 2H19 sales would recover and grow at 17% YoY. However, we forecast PNJ to closely match NPAT target of VND1.18trn thanks to margin upswing as discussed above.

FRT [NOT-RATED] - 5M19 Slow Sales Growth Challenges Annual Guidance - EGM Notes - 18 June 2019

19-06-2019 11:13:22

We attended FRT’s EGM on June 18th 2019. Below are key takeaways: - Amended company charter by adding 02 new business lines of Postage and Delivery. The new business are used:  First, to serve internal logistics needs of FPT shops (550 stores currently) and Long Chau pharmacy (40 stores currently + hundreds more in coming years). FRT estimates in-house logistics would save transportation costs by 15-20% vs. outsourcing. However, the overall impact on P&L is minor as transportation costs account less than 1% of total OPEX.  Second, to generate new revenue stream by leasing space for ecommerce companies to place delivery lockers, which allows ecommerce sellers and buyers to send and pick up items from lockers located at FPT shops. This model would reduce last-mile delivery costs for ecommerce companies, in return they will pay FPT rental fees for placing those lockers. Similar partnership exists in the USA and currently FRT is running pilot test with Lazada.

GVR [NOT-RATED]- Land Bank as Earning Primer - AGM Notes - 14 June 2019

18-06-2019 11:07:54

Vietnam Rubber Group (Ticker: GVR), the largest state-owned rubber group in Vietnam hold recently Annual General Meeting. There are some following highlights 2018 earnings result & business overview ·         2018 performance: Revenue and net profit reached at VND 22,683bn and VND 3,334bn, respectively. (Data FY2017 is not provided). Since June, 2018, the Group changed legal entity from Limited to Joint Stock Company after early-2018 IPO. GVR’s main segment is rubber exploitation and rubber-related businesses such as rubber wood manufacturing, and industrial park. 2019 – Short term benefits due to the recovery of rubber prices, and Long term benefits thanks to strong FDI inflows 2019 target plan: Revenue and NPAT are expected to achieve VND 24,224bn (+7% YoY) and VND 4,150bn (+24% YoY). Dividend FY 2019 will be at least 6% (on par). GVR plans to list on HOSE on Q3/2019. Room for foreign investor remains at 13%.

DHG [NOT-RATE] - Headwinds to 1Q2019 Sales Growth - Flash Notes - 04 June 2019

05-06-2019 15:58:33

We attended the 1Q19 analyst meeting of DHG on June 4th 2018 and below are key notes:   2019 AGM KEY PROPOSALS (June 6th 2019) ·         2019 company guidance: o    Total sales of VND 3,943bn (+1.4% YoY), in which VND 3,560bn for manufacturing goods (+12.3% YoY) and VND 383bn for merchandises (-46% YoY); low sales plan for merchandises due to the termination of distributing MSD and Eugica products since mid-2018 to facilitate FOL uplift according to Decree 54/2017/ND-CP o    NPBT of VND 754bn (+3% YoY) and NPAT of VND 706bn (+8% YoY); higher growth plan for NPAT based on tax allowance for new factory

MWG [+42% - BUY] - BHX on the track - Equity Update - 29 May 2019

29-05-2019 17:46:03

We reiterate BUY rating for MWG with 12M TP of VND 124,000 (previously VND 114,000) – a 42% upside including 2019F DPS of VND 1,000. Below are key notes: 1Q19 performance: DMX & BHX grew while TGDD declined in sales ·      MWG posted revenue of VND 25,017bn (+10% YoY & 23% of 2019 guidance); Revenue structure was DMX 58%, TGDD 35%, BHX 7% (1Q18: DMX 55%, TGDD 42%, BHX 3%). ·      Outlet network as at 31/3/2019: 1,023 TGDD stores (-18 stores vs. end-2018, mostly converted into DMX mini), 774 DMX stores (+24 stores vs. end-2018) in which 500 are DMX mini (150-200m2) & rest are DMX standard (400m2+), 469 BHX stores (64 stores vs. end-2018) in which 420 are BHX standard (150-200m2) & rest are BHX large (300m2+). Rest of 2019 outlook: BHX will stay on track ·      Accelerate BHX store expansion to achieve 800 stores by year-end; the acceleration has started since March as 46/64 BHX new stores in 1Q19 were opened in this month ·      Negotiate with FMCG suppliers to increase GPM for packaged items at BHX by 1-1.5% and with fresh foods suppliers to extend fresh SKUs, focusing on fruits and vegetable

DPM [SELL] - Headwind Ahead - AGM Notes - 23 April 2019

23-04-2019 14:07:50

DPM recently hold AGM with some below key points: 2018 Performance: Rising oil price and tough competition continue to hit earnings result ·         2018 core performance: In 2018, revenue reached VND 9,297bn (+16.3% YoY), and PAT achieved VND 700bn (+0% YoY). Urea production was 816,000 tons (+2% YoY). Urea consumption volume was 812,000 tons (+2% YoY). Urea gross profit margin decreased by c.8%, to 28% due to an increase of 30% natural gas price, eating marginal increase of 11 % selling price. Urea plant operated efficiently with an uptime of 92% throughout the year. ·         Mega project showed unstable. The two plants put into operation since Jan, 2018 and Q3/2018 with a 91% uptime. The company sold total 140,000 tons NPK in 2018 with 34,600 tons were self-produced. ·         Chemical segments delivered worst performance. Low demand, due to domestic tough fertilizer industry, led to a slowdown in chemical sales such as UFC85, CO2, etc. ·         Cash dividend. The company plans to pay 10% cash dividend (on par) FY2018 with 5% advance cash payment in 2018. The remaining 5% will be paid in Q2/2019.

PHR [+29% - BUY] - New Exposure to Industrial Park Segment - AGM note PHR - 02 April 2019

02-04-2019 14:28:38

Phuoc Hoa Rubber JSC., company recently held the Annual General Meeting with following key points: 2018 Business Performance Review. In FY2018, revenue and net profit achieved VND 1,721bn and VND 519bn, exceeding 9% and 45% target plan, respectively. The average natural rubber price remained low, at VND 31.4 million per ton in 2018, decreasing by 22% YoY. 2019 earnings outlook. PHR’s parent company sets the VND 2,192bn revenue and VND 1,246bn net profit before tax targets for 2019.  In which, rubber segment will contribute VND 75bn to net profit before tax. Meanwhile, land transfer and rubber wood continue to be a key growth driver for the company. In 2019-2020, PHR will transfer 1,000 ha land for VSIP3 and NTC with total profit of VND 2,000bn. In 2020-2025, PHR will invest new industrial park company in Hoi Nghia (Nam Tan Uyen District, Binh Duong) with total land size of 650 ha. For the long term, PHR plans to transfer total rubber land of 4,500 ha for industrial park development in 2020-2025. In 2019, PHR will divest from Geruco Song Con Hydropower JSC.,, Nam Tan Uyen IP JSC., and Phuoc Hoa – DakLak Rubber Ltd., with total investment value of VND 130bn. PHR will use the divestment proceeds to acquire 20% VSIP II stake.

PHR [+32% - BUY] - Industrial Park Development is A Game Changer - Equity Update - 22 Feb 2019

22-02-2019 16:20:32

2018 Business Performance Review. Despite a fall in rubber price, PHR continued to deliver a strong growth thank to rising wood price, increasing rubber-tree liquidation area and land transfer value. In FY2018, revenue and net profit achieved VND 1,721bn and VND 519bn, exceeding 9% and 45% target plan, respectively. The average natural rubber price remained low, at VND 32.9 million per ton in 2018, decreasing by 18% YoY. 2019 earnings outlook. Amid a low rubber price, PHR sets 2019 plan with around VND 1,600bn in revenue and VND 1,300bn in profit before tax. Land transfer and rubber wood liquidation play key growth driver. The company plans to liquidate ~ 1,000ha rubber wood and transfer ~ 650ha land for industrial parks development. As rubber price remains low, rubber segment is expected to contribute a marginal portion for the company’s total income. In 2019, rubber exploitation and rubber consumption volume will amount 11,500 tons and 26,500 tons, respectively. We expect PHR’s revenue and net profit will achieve VND 1,562bn (+0% YoY) and VND 1,287bn (+107% YoY) in 2019.