Research Center

We acknowledge the recent ban on gatherings announced by HCMC authority may hurt sales events hold by real estate developers in coming months. However, we believe Vietnam government has a political will, a full authority and especially a full support from local people to contain the second COVID-19 wave. NLG is among our top favourites as we forecast NLG could achieve its presales targets in late 4Q20F backed by its firm footprint, strong brand recognition to reap the housing demand. The business results in 1H20 was just a blip and the company is waiting for a robust outlook in FY20F-21F, in our view

As we noted in our AGM brieft report dated Jun 23, LHG is worthy for short-term alpha seeking investors betting in industrial property as we are concerned about its medium term contingent liability to Tan Thuan company. However, we downgrade our rating to Hold as we think the potential catalyst and lure dividend yield have priced in the market price. 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.

For range trading, buy VN30F2008 at 700-710 pts zone, take a profit at 740 pts and stop a loss immediately at 690 pts.

Despite the recovery, the short-term downside risk is still intact due to the high volatility of investor sentiment. The downtrend is formed as the 20-period moving average of the VNIndex closes below the 50-periods moving average. Therefore, traders should be careful and stay on the sidelines.

In 2Q20, Nam Viet recorded revenue of VND884bn (-17% yoy) and NPAT of VND32bn (-79% yoy). We expect Nam Viet’s pangasius export volume to China to lead Nam Viet’s volume growth in 2H20 after this market has fully recovered since June 2020. However, we are concerned that Nam Viet’s revenue will continue to contract and gross margin will improve slowly in 2H20 as we expect pangasius export price to remain low.

Credit provision jumped to VND440bn in 2Q20 from VND93bn in 1Q20. Notably, the credit provision uplift in 2Q20 (~VND330bn) mostly came from interbank loans which is unusual amid ample liquidity in the local banking system. Provision for customer loans was stable at VND114bn without significant change in assets quality, except VND9tn of COVID-19 restructured loans.

For range trading, buy VN30F2008 at 700-710 pts zone, take a profit at 740 pts and stop a loss immediately at 690 pts.

In the short term, the downside risk is still high because of the high volatility of investor sentiment. Besides, the VNIndex closes below the lower line of the downward channel again, showing the short-term downtrend. Therefore, traders should be careful and stay on the sidelines.

For bargain hunting, long VN30F2008 at 680-685 pts zone, take a profit at 710 pts and stop a loss immediately at 675 pts.

The downside risk is still intact in the short term due to the high volatility of investor sentiment. Besides, the VNIndex crosses down the lower line of the downward channel with a runaway gap, implying the short-term downtrend. Therefore, traders should be careful and stay on the sidelines.