Research Center

On Jun 16, we attended TCL’s AGM presentation briefing for the upcoming business plan. TCL currently held 92%, and 65% of market shares in the port operating segment in the Ho Chi Minh region, and Cai Mep area, respectively. TCL also occupied merely 50% of the container for international trades segment. On a prudent hope for a robust revival, TCL guides NPAT to be VND117.7bn, +3.7% yoy driven by a revenue estimate of VND1,242.5bn, +3.4% yoy. A 42% cash dividend at par could be paid in Aug, 2022, equivalent to a dividend yield of 11.6%.

Indirectly owned by Duc Giang Chemicals JSC (DGC VN, Non-rated) with a 51% stake, Vietnam Apatite Phosphorus Company (PAT) is going to list on the UPCoM bourse on Jun 17th with its 25mn shares. Riding on the commodity upswing, PAT stands out and gains the spotlight.

The management sets conservative guidance when it targets the output of 4.34bn kWh (+35% yoy), revenue of VND8,129bn (+32% yoy), and PAT of VND468bn (-12% yoy). NT2 is going to pay a 15% cash dividend at par for 2022F. In 1Q22, NT2 recorded a splendid result with a VND2,006bn (+22% yoy) and a VND159.6bn (+38.9% yoy), fulfilling 25%/34% annual guidance. 2Q22’s net profit is predicted to exceed 20% of quarterly plan. NT2 expects to enjoy better results in 2022F and a spectacular result since 2024F when its assets reach full depreciation.

Construction steel stole the spotlight with the sales volume posted at 393,000 tonnes, +32.0% mom and +21.2% yoy. The 4 price cuts in May have started to show the effectiveness for construction products.

HPG BOD had conservative guidance caused by the uncertainty of geopolitical tension. The BOD supposed that the industry impact caused by the geopolitical tension and the Zero-COVID policy will be shown in the company’s performance in 2Q22 and 3Q22.

HSG witnessed the slightly weaker performance in FY7M2022 on year-on-year basis caused by weak sales volume in first 4 months of 2022. Total Apr steel sales volume posted 175,144 tonnes, increasing by 9.7% mom but decreasing by 18.2% yoy.

The April performance witnessed the growth in export volume on year-on-year basis, helping export channel to remain as the key growth driver in 4M22. Domestic volume of steel coat recorded 19,331 tonnes (-18.2% mom, -35.3% yoy) and steel pipes volume posted 13,756 tonnes (-16.5% mom and -35.3% yoy).

The April performance witnessed the weak domestic demand for construction steel. The 4M22 performance witnessed the revival in domestic market, however, the high steel price slowed down the revival pace in April.

On May 12, we participated in NVL’s analyst meetings which briefs the presale growth, sales plan and the bottlenecks in credit quota for homebuyers’ mortgage. While we are still upbeat about the unrivaled monetization of NVL’s blockbuster land bank in satellite cities, we could not be relieved of its relentlessly rising net debt. Furthermore, the credit unavailability allocated to developers and homebuyers not only hinders the homebuyers’ purchase decisions but also jeopardise NVL’s fund demand to pay due debts. Give