Research Center

Based on the phone call to NLG’s IR on Oct 05, we project a VND69bn net profit (-53% yoy) despite a flat revenue of VND394bn (+1% yoy) in 3Q20F. The weak 3Q20F net profit growth could be attributable to a fewer property handover and no land transfer. Most of 3Q20F revenue is derived from construction business.

LHG’s market price have strongly rallied in the past month mostly due to the recent acquisition of 20% LHG’s stake by shareholder Vo Tan Thinh. Without any offering, we think that LHG’s price do not have much room to go up as we think the potential catalyst and lure dividend yield have priced in. In the medium term, we expect the new lank bank of Long Hau industrial park 3 phase 2 could trigger a surprising business growth FY22-23F.

In the short term, the uptrend of the VNIndex is still intact as the index closes above the 900-pts threshold. Therefore, investors may be held their long position and focus on leading tickers.

Stay on the sidelines and wait for the reaction of VN30F2010 at 875 pts level to have more reliable signals for the next market leg.

Economic recovery continues gaining pace by 3Q20’s end. The latest data showed 3Q20’s GDP growth rebounding markedly to 2.63% YoY from its historic low of just 0.36% YoY in 2Q20. Both export and import were accelerating at a double-digit pace, while the industrial sector continued to grow robustly. Also, FDI disbursement recorded the highest level in 2020. All these things are signaling a further economic recovery in 4Q20.

Stay on the sidelines and wait for the reaction of VN30F2010 at 875 pts level to have more reliable signals for the next market leg.

Despite the current consolidation/correction phase, the uptrend is still active as the Index closes above 900 pts level. Therefore, investors should hold the current positions and focus on leading stocks.

Last week, selling activities ticked up. Breaking down by sectors, selling pressure mainly focused on Consumer Staples, Real Estate, and Materials whilst Health Care was accumulated the most. Regarding to ETF flow, inflow across Vietnam maintained (USD4mn) thanks to SSIAM VNFIN Lead and VFMVN Diamond ETF which attracted the total of USD3.2mn.

Sell VN30F2010 after ATO session is finished, take profit at 830 pts and stop a loss at 870 pts.

Despite the contraction, the uptrend of the VNIndex is still intact as the index closes above the 900-pts threshold. Therefore, investors may be held their long position and focus on leading tickers.