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Despite the recovery, the downside risk is still intact in the short term due to pessimistic sentiment. Therefore, traders should wait for the next signals and stay on the sidelines.

On Apr 26, Gia Lai Power (GEG) held its 2022 Annual General Meeting. GEG targets a revenue growth of 37% yoy to VND2,073bn in 2022F, fueled by a VND1,927bn power revenue. Nonetheless, profit before tax is pegged at VND345bn, - 6.4% yoy. Hydropower, solar power and wind power outputs are projected to reach 253mn kWh, 383mn kWh and 367mn kWh in 2022F, respectively. GEG will issue an additional 30.37mn shares to existing shareholders at 1000:94 and over 9mn ESOP shares with the selling price of VND11,000. The company asserted to focus on wind power projects in the 2022F-2025F and considered to proceed M&A deals to expand its wind power capacity.

On April 26, we attended NBB’s AGM presentation briefing for the upcoming business expansion plan. The outbreak still weighs their performance since guidance net profit is pegged at VND102bn, -67.6% yoy despite revenue target of VND800bn, +41.5% yoy.Given the high leverage and tight bond with the major shareholder Construction of Infrastructure JSC (CII VN EQUITY, Not-rated), we stay skeptical about NBB.

On April 26, VNM hosted an AGM presentation briefing for the upcoming business expansion plan. Key issues covered were the 2022F guidance and their long-term outlook. VNM sets conservative FY2022F guidance of VND64,070bn revenue, +5% yoy and VND9,720bn NPATMI, -7.7% yoy. The negative profit growth rate implies that gross margin will be hit in 2022F. Per VNM, the earnings of dairy companies will be impacted by the rising in prices of input raw milk and sugar in 2022F. We maintain a HOLD rating with TP VND83,900 underpinned by a sluggish outlook in 2022F-23F. We keep our forecast with a VND65.7tn revenue, +7.9% yoy, and a VND10.9tn NPATMI, +3.9% yoy, EPS could reach VND4,686 in 2022F, implying a 12MF PE of 15.4x.

On Apr 26th, we tuned in to DCM’s AGM presentation briefing for the upcoming business expansion plan. The unstoppable price hike of fertilizer throws a spotlight on how far their earnings could stretch. However, DCM’s emphasis on the 2022F guidance seems ambiguous.

Last week, trading activity ticked across the covered warrant market, up 20% WoW. Besides, foreign trading activity was also increased but the market continued to end up to be net sold.

On Apr 25th, Gemadept held its AGM session to articulate the business plan for 2022. The company has increased its 2022 revenue and PBT target to VND3,850bn (+20% yoy) and VND1,200bn (+66.5% yoy), respectively. In 2022F, GMD would pay more attention to ramp-up Gemalink phase 2 and Nam Dinh Vu phase 2 projects which are expected to reach the capacity of 6mn TEUs after completing. Based on 2022F guidance, 12MF PE is 20.5x and 12MF PB is 2.3x, lower than the 2-year median PE of 28.9x and PB of 2.3x.

The short-term price target for the bearish swing is reached and volatility level is expected to increase in upcoming sessions. Traders should continue to stay on the sidelines and wait for the reaction of this instrument at 1,350 pts area.

Based on management's guidance of 2022F profit, 12MF PE is 25.1 times and 12MF PB is 1.2x times, slightly higher than the 1-year median of 24.1x and 1.1, respectively. Even though the share price has been pulled back steeply recently, we do not think the stock is worth accumulation. We view that SCR’s strong rally has been over manifested since the market sentiment of individual investors is betting on the positive changes in the licensing landscape in which SCR’s key land bank, idle for years will reap the rewards. Given the lengthy projects, abundant exposure to hospitality projects, and concerning corporate governance, SCR is not lucrative to put on the watchlist.

Based on the crash, the downside risk increased. Therefore, traders should wait for the next signals and stay on the sidelines.