Research Center

TLG sets the net revenue guidance of VND3,800bn (+9.8% yoy) for 2024, of which changes in the products’ design and the art category are expected to be the key driver. NPAT is targeted to climb to VND380bn (+6.7% yoy) but the most important thing in 2024 is to keep the market share against the harsh competition of Chinese products.

We recommend BUY for POW stock with a target price of 16,600 VND per share for mid and long-term investment strategy (upside +42.6%). We especially emphasize that in 2024–25, POW's earnings may still not achieve strong sustainable growth compared to the past, which could create strong incentives to improve valuation in the short term. We think that 2026 will be the year that marks the turning point in POW's long-term growth and is also the time to better reflect the value of the business

Although there was the rebound phase on the previous trading day, the bearish swing is still active and there is no place for the bullish move to extend. However, during this period, short positions are extremely risky due to the high volatile market move. In order to reduce the risk, trader should wait for the consolidation phase to capture the good entry.

Demand appears again in the afternoon, dragging the stock market to close in the green territory. However, inflow is quite weak as the liquidity remains at a low level. Furthermore, the downside risk is still present, as the VNIndex maintains to close below all major moving average lines. Therefore, investors should stand aside and carefully observe the next movements of the market.

During this period, short positions are extremely risky due to the high volatile market move. In order to reduce the risk, trader should wait for the consolidation phase to capture the good entry.

Selling pressure still suddenly intensifies in the afternoon, causing the stock market to fall deeply at the end. Although the liquidity has improved, still records at a low level, indicating investors’ sentiment is quite hesitant. Besides, the downside risk is currently high, as the VNIndex maintains to close below all major moving average lines. Therefore, investors should stand aside and carefully observe the next movements of the market.

In 3Q23, revenue recorded VND2,220bn, which is a significant drop of 62% yoy. Main reason was due to the decline in EPC business revenue. The mining business fared well after it started running in 3Q23. Even though it's still in the first phase and not quite at full capacity, the profit number is pretty good (gross margin: 33%). Also, we think PC1 will gain a lot from Power Master Plan 8 when it is the top company in wind power plans and transmission line building.

In 43W23, interest rates in the money market generally cooled down as a massive amount of SBV’s bills matured. Specifically, VND73.80bn matured while SBV newly offered VND25.55tn, leading to a net injection of VND48.25tn into the banking system this week. The overnight interbank rate rose slightly by 33bps, and the 10-year government bond yield even dropped by 16bps. Similarly, the USDVND uptrend eased with a modest increase of 0.12% compared to the last trading date of 42W23. We predict that Vietnam's monetary authority will issue more bills in the coming weeks in the context that lending activities in October remained gloomy to keep the exchange rate stable. Hence, short-lived funding costs in the money market will likely be more expensive than in previous weeks.

In 1QFY24, CTD's revenue rallied by 32.5% yoy and 14.09% qoq to VND4.1tn. Doubled their NPAT to VND66.6bn (+121% qoq), a clear improvement over the 3Q22 loss of VND3.5bn. The company’s gross margin stood at 2.4%,-0.4%p qoq, but + 1.4%p yoy. We maintain a BUY rating on CTD with a TP of 79,500, implying a +52.5% upside buy as the initial report (August 16, 2023).

During this period, short positions are extremely risky due to the high volatile market move. In order to reduce the risk, trader should wait for the consolidation phase to capture the good entry.