Research Center

NLG’s revenue rose by 64.3% yoy to VND640.1bn in 3Q20 thanks to an impressive all-round growth, including: 1) the 49% yoy surge in property handover to VND290bn; and 2) a project management revenue of VND92bn vs a loss of VND131bn in 3Q19. Despite the stellar 3Q20 revenue growth, net profit plunged by 80% yoy to VND29bn in 3Q20 below our expectation of VND67bn in our preview report, due to a small 20% gross margin in 3Q20

Nam Viet announced official 3Q20 business results in Oct 20, which delivered NPAT plunge as those of previous quarter, with VND40bn NPAT (-74% yoy) in 3Q20.

Vinh Hoan announced official 3Q20 business results in Oct 21, which delivered worse NPAT results than our expectation. Particularly, Vinh Hoan posted nearly VND1,800bn revenue (-4.4% yoy) and NPAT posted VND175.4bn (-30.8% yoy) in 3Q20

Credit growth was stronger than our expectation with a growth of 3.9% qoq in 3Q20 and 11.7% ytd in 9M20. Since MBB’s credit has skewed toward corporate bond and retail market amid downward slope of interest rate, 3Q20 NIM was up 44bps qoq to 5.25%.We believe that these brisk figures should be a result of the bank’s proper approaches in the COVID-19 infected economy and reaffirm BUY at TP VND24,200.

From 3Q20 investor meeting on 20 Oct 2020, ACB revealed to gain a PBT of VND6.4tn in 9M20, up 15% yoy, fulfilling 84% of the target. NII reached VND10tn, up 14% yoy and non-interest income was VND2.7tn, up 7% yoy.

SCS reported its 3Q20 results. Following, revenue reached VND167bn and PBT reached VND124bn, declining 10% YoY and 9.3% YoY, respectively. International cargo will be supported by trade activities when EVFTA has been approved and entered into force on Aug 1, 2020. Currently, travel restriction has been lifted but passenger travel is still neutral when quarantine regulations aren’t completed, airlines could continue to ramp up cargo transportation to offset passenger volume.

Vinh Hoan announced Sep 2020 IR News in Oct 19 2020, which delivered preliminary single-digit yoy revenue growth. In aggregate 3Q20, Vinh Hoan can record VND1,800bn revenue (-4.4% yoy), mainly lead by the EU surge, which is in line with our estimates.

Although pangasius export can still recover slowly, we believe Vinh Hoan’s business results will improve significantly in 2021 thanks to Collagen & Gellatin surge. Therefore, we reiterate BUY for VHC share with TP of VND50,000. Total expected return is 22.1%.

In the period of 2020-2022, we expect robust growth of Mobile World’s business results, which will reach 3-year CAGR revenue growth and NPAT growth of 23.8% and 32.9% in the period of 2020-2022, respectively. We evaluate MWG share value at VND155,000 per share. Total expected return is 43.6%, including 1.4% cash dividend yield.