Research Center

Short VN30F2305 after ATO session and stop the loss when there is the closing price above 1,050 pts level. (Hourly chart)

Despite the rebound, the VNIndex shows a bearish market due to closing below the 50-period moving average. That means the downside risk is still intact. Hence, traders should be careful and reduce long positions.

DCM released their 1Q23 financial statements. In particular, revenue was down 33.8% yoy to VND2,829bn due to 1) Export activities strongly declined by 80% yoy to VND884bn; 2) Urea average selling price in 1Q23 plunged (Revenue from urea accounted for 81% of total revenue in 1Q23, posted VND2,290bn). Because of this, gross profit plummeted at -71% yoy to VND568.728bn.

Based on the losing session, the VNIndex shows a bearish market due to closing below the 50-period moving average. That means the downside risk is still intact. Hence, traders should be careful and reduce long positions.

Short VN30F2305 after ATO session and stop the loss when there is the closing price above 1,050 pts level. (Hourly chart)

We tuned in to VIC’s analyst meeting on Apr 25 which featured the strategical visibility on Vinfast and shed some light on its 1Q23 operational updates. The heightened debt is raising concerns about its refinancing capacity amid the increasingly costlier borrowing rate (57.5% of total debt is a floating interest rate).VinFast is signaling an aggressive plan of investment outlay. However, the company has yet to announce the capex demand in 2023F.

In 1Q23, Sao Ta Foods posted VND1,008bn revenue (-24% yoy), which was mainly dragged down by -28.4% yoy of shrimp export segment. Meanwhile, NPAT increased by 15.1% yoy due to low SG&A expenses. Despite the uncertainties of industry outlook, We believe that the export to Japan and EU market could be the spotlight to support FMC earnings in 2023. We maintain BUY recommendations for FMC shares with a target price of VND49,100.

Liquidity pressure in the money market cooled down this week when the short-term mismatch in the TGA auction was partly resolved. On the other hand, 10-year G-bond yield and average deposit rates from SOBs were mainly unchanged after reducing significantly a few weeks ago, implying that the impact of recent policy rate cuts was fading and market participants likely await more signals from Vietnam’s central bank. Besides, USDVND has rebounded slightly when hitting SBV’s buying level.

We attended VRE’s AM session held on Apr 24th. The company articulates the business plan, coming out with optimistic guidance with (1) base case: VND10,350bn revenue (+40% yoy) and VND4,680bn (+68% yoy), and (2) optimistic case: VND11,500bn revenue (+57% yoy) and VND5,200 NPAT (+87% yoy).

In the short term, the VNIndex shows a bearish market due to closing below the 50-period moving average. That means the downside risk is still intact. Hence, traders should be careful and reduce long positions.