Research Center

We tuned in to MSB’s analyst meeting on May 24 which featured the strategical visibility on the bank and shed some light on its 1Q23 operational updates. The ratio of loan type 2-5 to cross loan and NPL climbed to 5.2% (vs. 3.1% as of end-2022) and 2.0% (vs. 1.7% as of end-2022) respectively. We note that the 1Q23 loan type 2 grew +146%YTD to VND4,337bn, about added VND2,700bn. Restructuring loan on circular 02 is estimated at VND229bn. Of which, SME and retail estimate VNsD189bn and VND40bn respectively according to the management.

PVS posted a solid business result in 1Q23 with flat revenue of VND3.7tn (-2% yoy), in which, Mechanical & construction (M&C) revenue reach VND2,048b (+4.1% yoy). PVS recorded NPAT-MI of VND215bn (-1% yoy) due to having a one-off profit in 1Q23. In the long term, PVS will focus on offshore wind power.

We joined VCB’s analyst meeting on May 19 which featured the strategical visibility on the bank and shed some light on its 1Q23 operational updates. VCB released its results with PBT up 12.8% yoy to VND11,221bn, derived from strong top-line growth (+10.7% yoy) and low provision expenses (-11.1%yoy). A significant increase in OPEX (+17.0% yoy) was the key dampening factor. VCB is trading at PB of 3.1x, 209% premium over private peers’ average of 1.49x and lower than the five-year average of 4x.

4M23 preliminary revenue posted VND3,116bn (-36.1% yoy), backed by (1) high base in 4M22, and (2) the tumble revenue of most products yoy and qoq, especially pangasius. 4M23 revenue fulfill 26% our estimates. We maintain a HOLD rating

We tuned in to CTG’s analyst meeting on May 18 which featured the strategical visibility on the group and shed some light on its 1Q23 operational updates. Total credit risk provision cost could fall by 34.5-50% yoy (VND12,000-15,000bn) in 2023, per management. However, CTG has yet provide the PBT guidance since they must obtain approval from SVB based on 2023 AGM. The management eyes NPL to be below 1.8% as of end-2023.

Total Apr steel sales volume posted 77,269 tonnes, decreasing 7.6% mom and 17.0% yoy. The 4M23 total sales volume came in at 271,967 tonnes, -22.4% yoy. In which, the steel coat volume declined 24.6% yoy to 221,091 tonnes and the steel pipes volume was down by 11.0% yoy to 50,870 tonnes.

Total Apr steel sales volume posted 129,992 tonnes, dropping by 25.8% yoy but increasing 21.5% mom. The FY7M23 (Oct 2023-Feb 2023) total sale decreased 38.0% yoy to 764,474 tonnes as steel pipes volume declined 24.5% yoy to 162,258 tonnes and steel coat fell 40.8% yoy to 602,216 tonnes.

Total Apr steel sales volume posted 535,640 tonnes, decreasing by 14.7% yoy and 5.6% mom. The 4M23 total finished-product sale volume dropped significantly to 2,117,172 tonnes, -30.7% yoy. Of which, all products sale volume declined due to high base in 2022.

In April, MWG recorded a 20% increase m/m in revenue to VND9,700bn of which TGDD/DMX revenue was up 30% m/m due to a strong increase in air conditions sales and BHX revenue increased 3% m/m, reaching VND1.35bn per store per month. Per management, MWG gains market shares in cellphone & electric appliance fields due to a price-competitive strategy and they continue to pursue this price-competitive strategy for a long period, it is not a campaign.