Research Center

BOM of PVT shows their conservative approach in 2022F amid political and economic uncertainties. However, we expect PVT can surpass this year’s business guidance based on the hints of BOM on (1) rising transported volume/nautical mile, reflecting higher transportation demand; (2) lower vessel supply due to higher shipbuilding costs. In 2022F, the firm aims to acquire 8-10 new vessels, reflecting the ambitious to remain its leading position. Strong financial health also help the firm be flexible in raising capital to cover new Capex.

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.

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.

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.

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.

The May performance witnessed the weak domestic demand for all steel products. The 5M22 performance witnessed the slower-than-expected revival in domestic market amid high inflation concern.

We witnessed the slump in performance of FY8M2022 on year-on-year basis caused by weak sales volume in first 5 months of 2022. Total May steel sales volume posted 121,328 tonnes, decreasing by 30.7% mom, 45.2% yoy.

The May performance witnessed the growth in export volume on year-on-year basis, helping export channel to remain as the key growth driver in 5M22. Domestic volume of steel coat recorded 13,952 tonnes (-27.8% mom, -29.3% yoy) and steel pipes volume posted 10,288 tonnes (-25.2% mom and -36.1% yoy).

On Jun 17, we tuned in to GVR’s AGM presentation briefing for the upcoming business plan. Rubber Group of Vietnam is among the biggest state-owned rubber producers with 400,000ha rubber land: Laos and Cambodia occupy 115,000ha, Southeast regions of Vietnam form 150,000-160,000ha, Central Highland accounts for 70,000. GVR’s rubber capacity stood at 1.51tonne/ha in 2021. Hit by swirls of raw material price rally and freight rate upturn, GVR prudently guides a flattish NPAT of VND5,340bn based on a 4.8% yoy revenue growth.