Research Center

On June 2, US Department of Commerce (DOC) made preliminary conclusions on anti-dumping investigation into Polyester Textured yarn (PTY) products from Vietnam with dumping margin of between 2.67% and 22.82%. However, STK believes this action slightly hit its business.

Alibaba Group and Baring invested USD400mn, equivalent to 5.5% ownership of The CrownX as of end-April. CrownX aims to build LazMall e-commerce platform co-operated by Lazada Vietnam. Besides, MSN acquired 20% stake of Phuc Long Heritage in May and is eyeing building Phuc Long Kiosks (store in-store concept) inside VinMart+.

We revise up the presale value from VND13.5tn to VND15.4tn in FY21F and from VND16.7tn to VND23.2tn in FY22F to factor in the encouraging attributes 1) the average selling price (ASP) Mizuki condo project is around VND37-42m/ sq m in 2021 in tandem with the latest launch on April, 2) Dai Phuoc townhouse project could be developed in 4Q21F-1Q22F instead of being transferred to third party, and 3) Waterfront Izumi ASP could enjoy an excitement up to VND40-45m/ sqm.

SBV has sent document to credit institutions warning on 10 signs of potential risk appeared in the sector in 2020 and asked them to strictly follow Directive 01/CT-NHNN on banking key tasks in 2021. These are official messages for banking operation in 2021 in order to maintain system stability amid unpredictable COVID-19 situation. However, we don’t expect these may tamp down credit growth in coming quarters given favorable interest rate environment and dynamic local economy.

ACB 1Q21 NP came at VND2.5tn, up 62% yoy despite of a skyrocketed in credit provision. This is driven by a 83% yoy advance in PPE. Following effectiveness of Cir.03, ACB expects to book ~VND300bn of extra provision on COVID-19 restructured loans. We lift 2021F NP by 10% to VND12.5tn, up 30.7% yoy and upgrade 12M TP to VND40,100. We expect healthy topline growth of 16-18% is able to offset extra provision and helps ACB to achieve NP growth of 17-30% in coming years.

Per management guidance, FY21F earnings correspond to a forward PE of 9.4x and PB of 1.8x, which seem unwarranted with the local peer median at 14x and 2.1x, respectively. The management note that the actual FY21F earnings could be achieved at 100-130% of the company estimate. Hence, this may be a stock worth watching in the second half of the year when the surprising net profit could be recorded.

We tuned in to VIC’s analyst meeting on May 4. The presentation largely centered on its stunning 1Q21 results and upcoming strategic plan in FY21F. Despite some short-term headwinds, we believe that the growth prospect is still solid.

Khang Dien House Trading and Investment JSC’s (KDH) 1Q21 revenue reached VND836.5bn, +19.3% yoy. We estimate that around 20 units in the Verosa townhouse project and 300 units in Safira project were delivered in 1Q21. Gross margin (GM) in 1Q21 contracted by 5% pts yoy to 42.8%, due to the lower-margin contribution of Safira condo project. However, the financial expense dropped by 36.6% yoy as the lower Verosa units delivered in 1Q21 resulted in an immaterial payment discount expense.

The 1Q21 net profit skyrocketed by 11.1 times yoy to VND599bn on the back of a 260.2% yoy total revenue increase to VND2tn, and a 12.2% pts gross margin expansion to 56%. Around 64ha land area was transferred in 1Q21 vs 14.5ha in the 1Q20 which was heavily hit by the COVID fallout. We expect the NSHL will be the leading catalyst to drive the industrial land revenue in the second quarter.