Research Center

Vinhomes buoyed the morning trading session with the announcement of a vibrant VND11.1tn NPATMI, +84.3% yoy, 9.1% qoq, topping those listed in the Vietnamese equity market and marking the two consecutive earnings quarters of over VND10tn. Per management, three new mega townhouse projects, Wonder Park, Dream City, Coloa, are rescheduled to open for retail sale in 2022F instead of 2021. We are reviewing our presale forecasts to reflect the new landscape of VHM’s development pipeline.

This monthly report on Hoa Sen is intended to track the operational developments in the steel market. On Sep, HSG steel sale volume increased 20.3% mom (200,545 tonnes), bringing FY21 growth to 41% yoy (2,286,861 tonnes). The local demand revived from low base in August (43.8% mom).

On October 19, 2021, SCS announced its 3Q21 earnings results with revenue of VND172bn (+2.5% yoy) and PBT of VND130bn (+5.2% yoy). The high increase of average selling price (ASP) when ASP rose +22.5% yoy largely contributed to this gain. In the world, air cargo prices on all routes continuously increased to new highs of the year due to combined with strong consumer demand and strains capacity. We maintain BUY rating on SCS but upgrade our TP by 5.0% from VND152,600 to VND160,200.

In 3Q21, revenue from product handover was minimum, mainly due to social lockdown in Southern Vietnam which prevented Nam Long from handover Akari City, Southgate project as planned. However, NLG earned a VND361bn revaluation gain from the consolidation of Southgate JSC driven by receiving an additional 15% voting right to 65%. NLG price has far been beyond our target price driven by the better-than-expected net profit in 3Q21. We will adjust the revaluation gains in 3Q21 to reflect the true landscape of NLG’s earnings in 21F and review our target price

This monthly report on Vietnam steel production is intended to track the developments in the steel market. Sept 2021 Vietnam steel production declined 4.2% mom (2.2mn tonnes), bringing 9M21 growth to 24.3% yoy (22.9mn tonnes). During Sept 21, we observe that only export saw positive sale volume growth of 13.1% mom. The local demand was sluggish (-10.7% mom).

On Oct 16th, MWG briefly announced to launch the new chain name TopZone, specializing in Apple products. The management expected to expand up to 50 AAR stores and 10 APR stores as of end-1Q22F.

This monthly report on Nam Kim is intended to track the operational developments in the steel market. On Sep, NKG steel sale volume increased 13.1% mom (102,796 tonnes), bringing 9M21 growth to 57.9% yoy (797,614 tonnes). We observe that only export saw positive sale volume growth of 2.0% mom. The local demand was sluggish (-100.4% mom).

This quarterly earnings report on Vietnam steel production is intended to track the earning growth trend in the steel market. We think the splendid growth record in 2Q21 could sustain in 3Q21 of which net profit of HPG, HSG, NKG and TLH are widely rumored to record around VND9.5tn, VND950bn, VND650bn, and VND105bn, + 2.5x/2.1x/6.8x/8.5x yoy backed by 1) Buoyant demand from the U.S. and EU 2) expanding gross margin.

Total August sales volume posted 166,645 tonnes, decreased by 4.4% yoy, 11.3% mom. The total sale volume in 11 months (Oct20 – Aug21) came in at 2,086,316 tonnes, +45% yoy backed by the steel coat volume growth of 50.6% yoy to 1,636,793 tonnes and the steel pipes growth of 27.8% yoy to 449,491 tonnes.