Research Center

Khang Dien House Trading and Investment JSC’s (KDH) 4Q21 revenue reached VND590bn, -54.3% yoy and NPATMI posted VND414.3bn, 8.3% yoy. We estimate that ~ 99 units in the high-rise Lovera Vista project and 3 units in Verosa were delivered in 4Q21. The company also recorded a VND201bn other income from acquiring 98.9% stake in Nguyen Thu Real Estate company. No information was disclosing about the land bank except KDH could console a VND729bn inventory.

The monthly report reflect the movement of Vietnam seafood export activities. Dec 2021 Vietnam seafood export value stayed brisk by +29% yoy to USD940mn backed by strong growth of key products.

4Q21 NPATMI of VND361bn plunged largely in the absence of the unexpected revaluation gain in 4Q20. In 4Q21, revenue from product handover was remarkable mainly thanks to from handover Akari City of 1,525 units, equivalent to VND3.5tn. The result was lower than our estimation of 1,800 units. Together with a VND429bn goodwill income booked in 1Q21 thanks to a further 30.1% stake acquisition to 65.1% of Waterfront (Izumi) project, 2021 NPATMI reached VND1,071bn, +28.2% yoy.

This monthly report on Vietnam steel production is intended to track the development in the steel market. Dec 2021 Vietnam steel production decreased slightly 5.7% mom to 2.53mn tonnes, bringing 2021 growth to 18.9% yoy(30,8mn).

2021 is a great year so far for NKG. By successfully exploiting the export opportunity, NKG has fully offset the weak domestic demand caused by COVID-19 in 2021. The 2021 total sale volume came in at 1,083,621 tonnes, +54% yoy on the back of the steel coat volume growth of 65.4% yoy to 929,527 tonnes and the steel pipes growth of 8.7% yoy to 154,094 tonnes.

This monthly report on Vietnam steel production is intended to track the developments in the steel market. Nov 2021 Vietnam steel production increased 1.1% mom to 2.68mn tonnes, bringing 11M21 growth to 21.4% yoy (28.3mn tonnes). During Nov 21, we observe that the local demand revival pulled back (-18.4.% mom, -25.9% yoy). Export-driven volume was at a stable level during 2H21 - 685,167 tonnes.

The November performance witnessed the pause in domestic demand revival amid high expectations during peak construction season. The domestic volume of steel coat recorded 13,516 tonnes (-35.6% mom, -37.8% yoy) while domestic steel pipe volume posted 10,022 tonnes (-28.1% you, -52.9% mom) amid the easing lockdown policy.

In 9M21, SSI posted a VND1,697bn net profit (+93.9% YoY), beating the full-year guidance by 13.4%. SSI is trading at a 23.9x TTM PE and 3.7x PB ratio, higher than the local peer median of 19.8x and 3.5x, respectively. SSI valuation is warranted by its top three largest broker and top one in margin loan provider who could make the most benefit from the rising daily average trading value up to VND 31tn in late Nov.

The October performance witnessed the current revival of domestic demand from low-base August. The domestic volume of steel coat recorded 20,975 tonnes (+42.8% mom, +22.9% yoy) while domestic steel pipe volume posted 13,932 tonnes (-20.5% yoy but +136.4% mom) amid the easing lockdown policy.