Research Center

Buy VN30F2011 at 900-905 pts area, take a profit at 950 pts and stop a loss at 885 pts.

Last week, selling activities kept overwhelming. Breaking down by sectors, selling pressure continued to focus on Consumer Staples, Industrials, and Real Estate whilst Materials was accumulated the most. Regarding to ETF flow, Vietnam recorded the second week of outflow. VFMVN30 ETF and VanEck Vietnam ETF were the main contributors which recorded USD5.5mn of outflow despite X FTSE Vietnam attracted USD1.4mn last week.

VCB reported 3Q20 controlling-interest NP at VND4tn, down 20.9% yoy and 4.5% qoq due to an increase in OPEX. VCB has been more conservative than other banks regarding to provisioning and credit expansion. As of Sep 2020, VCB made a credit growth of 1.6% qoq and 6.5% ytd while maintained NPL coverage ratio as high as 215%. We reiterate Hold on VCB.

The short-term bullish leg is reaching its short-term objective and there is no entry point with good risk-reward ratio. Thus, traders should stay on the sidelines and wait for the reaction of VN30F2010 at 940-950 pts zone and only buy when price collapses.

Nam Tan Uyen’s 3Q20 revenue skyrocket 90.8% yoy to VND102.8bn and the 3Q20 net profit boomed by 115.6% yoy to VND98bn mainly thanks to land transfer revenue growth of +109.4% yoy to VND90bn. The 3Q20 land transfer revenue recorded the first one-time recognition of rental payment of around 1.7ha

As mentioned above, upward resumption phase and there is the tendency for the Index to retest 990-1,000 pts area. Therefore, investors should continue to hold the current positions and buy more in correction phase.

After the second gaining session, the market sentiment has become an optimist. That confirms the short-term uptrend. Therefore, investors may hold their long position and focus on leading tickers.

Long Hau JSC (LHG) reported a stellar 3Q20 topline of VND72bn, up 46.2% yoy. We believe the strong growth was driven by 1) the 33-40% yoy surge in land rent in 3Q20 and 2) 0.5ha land transfer area in 3Q20 vs 0ha land area in 3Q19. The 3Q20 net profit grew to VND23bn, 25.6% yoy, in line with our 3Q20 preview report.

Long positions captured at the best bid zone (900 pts) should not be closed, take a profit at 940-950 pts and positions must be out when this instrument retests 900 pts. For new positions, long VN30F2011 at 915 pts zone, take a profit at 940-950 pts and stop a loss at 900 pts.

The short-term uptrend is confirmed because of the optimistic market sentiment. Therefore, investors may hold their long position and focus on leading tickers.