Research Center

NTC is among the rare breeds immune to the market downturn trickled by COVID-19, The market price has spiked up by 23.1% in the last six month, beating the INDEX perfomance in the same period. we think the increasing trading money flow into NTC is fuelled by the exacxerbated optimisticsm about the robust outlook of FDI stream to Vietnam steaming from the chain supply relocation out of China and a leverage to a preferred partner in US cooperative projects. NTC is a favourite among our stock picks thanks to its healthy balance sheet, high interest income, a secured revenue stream and huge cash inflow from the upcoming NTU3 IP. However, we maintain HOLD rating as tailwinds have priced in.

On May 29 VHM held AGM briefing for the 2020F business plans. Some key issues covered from VIC's AGM were repeated including residential launch plan, industrial property investment. VHM's is among our top picks in 2H20 driven by another year of business performance record in FY2020F

We attended DXG’s AGM meeting on 30 May with some following key takeaways of the story....

On May 28, VIC held AGM briefing for the 2020F business plans. Key issues covered were residential launch plan, automobile business, industrial property investment.

Mixed 1Q20 results due to diverse provisioning policies. Currently, credit demand remains weak but yet recovers. The country may return to pre-pandemic level and lending growth will regain in 3Q20

The lowest quarterly performance in 1Q20 for three years was attributed to intensified fear of COVID-19 transmission in crowded events. When normalisation of life after the lockdowns comes, developers will be under pressure to ramp up sales, which is likely to see enormous discount and eased payment terms.

Yesterday, TCB’s representatives had an online meeting with investors regarding to 1Q20 performance and 2020 vision. The most noticeable point is impressive outcome from digitization with rapid increase in e-banking transaction. Further emphasizing on technology may lift the bank’s CIR to above 35% in 2020. NIM is expected at around 4.5%-4.7% in 2020 thanks to lower funding cost. But they have not revealed target net profit.

Power Construction No.1 reported 1Q20 NPAT of VND93bn, up 5.9% YoY. This result is attributed to handover of Thanh Xuan project to cover poor performance of power generation segment. We expect PCC1 has a long-term prospect based on the growth of power generation to improve earnings quality so that we remain our BUY recommendation

We expect brighter domestic market post pandemic and favorable milk input price will strengthen profit growth in the coming quarters. Therefore, we maintain BUY for VNM share with TP of VND124,400. Total expected return is 16%.