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On Jun 27, we joined DPR’s AGM presentation briefing for the upcoming business plan. To Bac Dong Phu IP, they work their best to resolve the requirement of Ministry of Planning and Investment by raising the charter capital of IP segment by VND200bn in 2H22F. Based on our estimates, the operation could commence at the soonest of 1H24F.- DPR is among the scarce diamond in the rough for those investors who are seeking company’s qualified earnings and solid fundamentals.

Despite the recovery, the downside risk is still intact because of low liquidity. Therefore, traders should stay on the sidelines and wait for the next signal. Besides, traders should watch the double bottom pattern as the levels of the two last bottoms are the same.

Long VN30F2207 at 1,240 pts area and stop the loss when there is the closing price below 1,220 pts level. (Hourly chart)

On Jun 28, we joined NTC’s AGM presentation briefing for the upcoming business plan. NTC is worth a favorable watching stock pick driven by their healthy balance sheet (30% cash of total assets as of end-2021) and spectacular growth prospect triggered by NTU 3 IP and Bac Dong Phu IP (300ha, NTC owns 40% stake, DPR :51% stake). We believe NTC could soon obtain the NTU 3 IP’s land handover decision from Binh Duong province in 2H22F and reaps the reward from Bac Dong Phu IP in 1H24F, at the earliest. NTC is trading at 15.2x TTM PE, trailing the 2-year median of 15.4x and the highest multiple vs the rivals (12.3x). We think the expensive valuation has factored in the stellar earnings growth in 2023F-24F.

MWG posted 5M22 business results with revenue of VND59,324bn (+14% yoy) and NPAT of VND2,202bn (+1% yoy), fulfilling 42%/35% guidance. In which, separate May revenue of VND11,416bn (+3.1% yoy, -0.2% mom), and NPAT of VND383bn (-8.3% yoy, +2.4% mom). May-22 NPAT has continued to grow compared to some last months but was lower than the abnormally high base of May-21. 5M22 net margin was 3.7%, lower than 4.2% in 5M21.

Market ended up to be net bought. Demand was mainly attracted by Consumer Staples, Industrials, and Utilities whilst selling activity was absorbed the most by Materials, Real Estates, and Consumer Discretionary. With ETF flow, money inflow across Vietnam came back to normal level. Net inflow was USD21mn. The positive flow of money was mainly driven by Fubon FTSE Vietnam and VFMVN Diamond.

On Jun 25, we tuned in to KBC’s AGM presentation briefing for the upcoming business plan. KBC is trading at 31.8x TTM PE, higher than 2-year median of 23.9x. Imaging KBC’s 2022F net profit estimate of VND4.5tn could materialize, the 12MF PE is translated at 5.1x which seems undemanding given the KBC’s firm foot print in the IP operation map. Despite a number of falling shy of annual guidance in 2020-21, the management is upbeat about the signing land rental contracts with global giants in the next two weeks and that symbols a new era of earnings turnaround.

Long VN30F2207 at 1,230 pts area, set 1,280 pts zone as the profit target and stop the loss when there is the closing price below 1,220 pts level. (Hourly chart)

The VNIndex shows some bullish signals as it crosses the 10-period moving average going up. Besides, traders should watch the double bottom pattern as levels of two last bottoms are the same. However, the downside risk is still intact because of low liquidity. Therefore, traders should stay on the sidelines and wait for the next signal.

Although the 1,200 pts area is still respected, the probability for breaking this area is still high due to the solid selling pressure above. In this case, traders should stay on the sidelines and wait for the bottom forming signal.