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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

TVS Weekly NewsBrief - HPG\'s 4M Business Performance

25-05-2020 17:19:04

HPG is the leading construction steel manufacturer in Vietnam with a 31.3% market share as of 4M2020. In their 2020 business plan, HPG revenue is expected to reach VND 85,000 – 95,000 bn (+33 – 48% yoy) while profit should reach VND 9,000 – 10,000 bn (+20 – 33% yoy). We believe both these targets are achievable.

TVS Weekly NewsBrief - Wk20.2020

18-05-2020 11:05:58

The State Bank of Vietnam (SBV) cut policy rate by 50bps in response to Covid-19. In particular, the discount rate and refinance rate stay at 4.5% (down from 5%) and 3% (down from 3.5%) respectively. In our opinion, the rate cut provides more liquidity and low-cost fund to bank system.  However, the impact will be small as 1) borrowing from the central bank source accounts for very only 0.2%-0.5% of total banks’ liabilities and 2) most banks, especially on small private banks, mobilizing deposits on 6-month above to avoid deposit rates cap by SBV.

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.