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On Aug 1, Novaland released its 2Q22 business results, featuring mixed performance. Novaland recorded its 2Q22 flattish 4.5% yoy growth of topline (VND2,658.2bn) driven by a VND2.2bn handover value of low-rise houses in Aqua City, NovaWorld Ho Tram, NovaWorld Phan Thiet, NovaHill Mui Ne, Soho Residence and Victoria Village. However, NPATMI plunged sharply by 44% yoy to VND749bn, due to the absence of one-off other income of VND1,691.5bn recorded in 2Q21

Long position on VN30F2208 near 1,220-1,225 pts area should be held and stop the loss when there is the closing price below 1,215 pts level. (Hourly chart)

The VNIndex shows the second breakout with high volume, implying a bullish market in the short term. Therefore, traders may open small long positions focusing on the leading sectors such as Banking.

Khang Dien House Trading and Investment JSC’s (KDH) 2Q22 revenue reached VND732.5bn, -34.1% yoy and NPATMI posted VND331.8bn, 24.6% yoy. Gross margin (GM) in 2Q22 boomed by 25.5% p yoy and 13.7%p qoq to 67.9%. As we expect, the sales events could be kicked off from 2H22F. Contrast to the sluggish presales growth in 2021 which was impeded by social lockdown, KDH is exciting to come back the real estate market

Demand kept overwhelming. Buying activity was absorbed by Consumer Staples, Consumer Discretionary, and Financials whilst supply mainly spread to Materials. With ETF flow, Vietnam attracted the positive flow of money. The positive flow of money was mainly driven by the slowdown of money outflow on VFMVN Diamond and VanEck Vietnam as well as the stable demand on Fubon FTSE and VNFIN Lead.

HSG released 2Q22 results on 29 July, posting revenue of VND12,177bn (-3.8%qoq, -6.2% yoy) and net profit of VND265bn (+13.2% qoq, -84.4% yoy). 9MFY22 revenue was VND41,937bn (+26.8% yoy) and net profit was VND1,138.0bn (-66.2% yoy), fulfilling 90%/75.8% company guidance.

NKG released 2Q22 results on 29 July, posting revenue of VND7,196bn (+0.6%qoq, +2.7% yoy) and net profit of VND201.4bn (-60.3% qoq, -76.2% yoy). 6M22 revenue was VND14,347bn (+20.9% yoy) and net profit was VND708.3bn (-39.2% yoy), fulfilling 51.3%/44.2% company guidance.

Despite the contraction, the bullish signals are clear. In addition, the volume remains high level. Therefore, traders may open small long positions focusing on the leading sectors such as Banking.

Long position on VN30F2208 near 1,220-1,225 pts area should be held and stop the loss when there is the closing price below 1,215 pts level. (Hourly chart)

The reversal pattern is formed and the probability for VNIndex to extend its current rebound phase is high. In this case, investors could start to open positions on leading stocks but margin trading should be avoided due to the medium-term bearish swing.