Company Report

In the first 6 months of 2018, Gemadept completed transfer of 51% stake in Hoa Sen - Gemadept Port (Profit of VND115 billion) which will be accounted for in Q3.2018 profit. Divesting 50.9% stake of Gemadept Logistics Holdings (Gained 1.356 billion) and 49% of Gemadept Shipping (Gained VND100 billion) to CJ Logistics in the first quarter of 2018 brought financial income to VND1,500 billion. However, the sale of logistics to CJ also reduced its Logistics Revenue to VND248 billion (-76.2%). Ports revenue increased due to new port launching Nam Dinh Vu Port in Hai Phong started operation in February 2018. With three other ports operating in Hai Phong namely Nam Hai Dinh Vu, Nam Hai and Nam Hai ICD, GMD solidifies its integrated logistics operations. Hai Phong is also one of the key industrial centers of Vietnam, especially import-export activities are bustlingly happening here. Profitability is improved by focusing on core business After transferring logistics activities to

The major business activities and functions of PVGas are the collection, storage, transportation and distribution of gas through its subsidiaries. In Vietnam, PVGas is the only unit assigned by Vietnam National Oil and Gas Group (PetroVietnam) to carry out the above activities. The main products of PVGas are dry gas, LPG, condensate, auxiliary activities for gas businesses such as gas & condensate transportation, gasoline and oil, office leasing, pipe production. steel and pipe coating. Crude gas after being collected from the gas fields will be transported to Gas Processing Plants to extract condensate and water and then treated with acid to separate sulfur and hydrocarbons such as Ethane, LPGs (Propane and Butane). After being processed, dry gas is mainly Methane. Dry gas can be liquefied (LNG) for transportation or compression (CNG) and delivered to the point of sale through high pressure piping. LPG is mainly used in civil use (12kg gas cylinders for civil use and 45kg

Net revenue of CVT reached VND1,448 bn, up by 22.8% yoy, which completed 85% of the business plan. Gross profit margin (GPM) hit 20.1%, sliding 3.7% YoY as the output price declined and the input cost rose with the depreciated cost from the new factory. EBT of the company was VND 209 bn, down by 3.7%yoy, which completed 80.5% of the plan. NPAT in 2018 was VND168.1 bn, deceasing by 3.3% yoy. CVT has a prudent business plan with 2019 revenue expected to reach VND1,700 bn, up by 10.6% yoy. EBT is expected to reach VND220 bn, gaining 5.26% yoy. The new product line, which is tiles absorbing soluble salt – micro crystal, has difficulties in penetrating the market. Amid fierce competition in the construction market, declining gross profit margin, and construction businesses heading towards affordable products to reduce cost, high quality products consumption will meet many obstacles. According to general statistics, the price of tiles sold tends to decrease by 2-3% compared to

In 1H2018, CTD recorded a revenue of VND 12,613bn (+19.6% yoy) and a net proft of VND 718bn (+0.7% yoy). Despite a signifcant soar in revenue, net proft saw a decline as gross proft margin dropped from 8.4% in 1H2017 to 6.7% in 1H2018. This resulted from a reducton in contributon of design and constructon contracts, a hike in input material price and pressure from domestc competton. In additon, G&A expense increased sharply to VND 260bn (+41.3% yoy) since labor cost rose as a result of adjustments of basic salary and insurance fee startng 1 Jan 2018. Total number of newly signed contracts in 1H2018 reached VND 13,900bn (including: Vinfast, Hoa Phat Dung Quat Steel Complex, Casino Hoi An), down by VND 14,000bn compared to that of 1H2017. transferred contracts untl Q2/2018 valued at VND 24,000bn (compared to VND 23,000bn at the end of 2017). CTD has signed a contract to be the main contractor for upcoming projects of Vingroup (Vincity Gia Lam, Vincity Tay Mo Dai Mo, Vincit

In 1Q2018, HPG revenue and net profit reached VND 13,161 billion (+26.1% yoy) and VND 2,222 billion (+14.8% yoy) respectively, fulfilling 23.8% and 27.6% company’s revenue and net profit target for 2018. Strong revenue growth in 1Q2018 was attributed to a gain of VND 515 billion from sales of the Mandarin Garden 2 projects (compared to VND 16 billion in 2016) and sales volume of construction steel and steel pipes reached 542,000 tons (+10% yoy) and 148,200 tons (+17% yoy) respectively, and steel price increased. Gross profit margin was 22.8% compared to 23.9% in the same period in 2017, gross profit margin slightly lower than the same period last year due to the profit from the iron ore hedging contract of about VND 700 billion in 1Q2017. Other expenses have not changed compared to 2017.

Most of non-recurring items recorded during 2018 would lead to less room for abnormal recording in 2019 and afterward. From now on, therefore, it would be more difficult for ACB to achieve the infrequently high growth as the last 2 years. Non-interest income is forecast to slowdown because the sources of growth in the last 2 years, which mostly comprise of losses recovery, would be less abundant since 2019. Retail lending, which focuses on mortgage car loans, is expected to withhold its position as the leading activities like in the last 2 years’ figures and follow the general trend within banking industry. Beside, digital banking progress in “Future bank” strategy will be kept highly invested and expanded. Cost of funding pressure would be more prominent in 2019 due to many reasons: 1) Global interest rate hike and trade conflicts; 2) Domestic bond yield is forecast to stay in growing trend; 3) Drastic competition in customers deposit with rising compression from SOE-ban

In 1H2018, HBC earned a revenue of VND 8,079bn (+19.6% yoy, completng 41.1% of annual plan) and net proft of VND 294.6bn (-22.0% yoy, completng 30% of annual plan). Gross proft margin went down from 10.9% in 1H2017 to 9.6% in 1H2018 due to factors including an increase in social insurance because of new Government’s policy, a rise in price of input materials, a drop in selling price due to compettve pressures and temporary discontnuaton of some constructon projects as a result of developers’ issues. Revenue and net proft of HBC in 2H2018 is expected to reach VND 11,500bn ((+23.9% yoy) and VND 692 bn (+42.9% yoy, including earnings from project transferring), proft from core business is projected to be VND 418bn (-13.6% yoy). Therefore, we recommend a HOLD to HBC with a target price of VND21,900/share, equivalent to estmated PE of 6.0x. This price is considered reasonable based on HBC’s business conditons, 1H2018 performance as well as 2H2018 outlook of constructon sector.

TCB is a bank with medium asset size and credit market share among private commercial joint stock bank, but its operating effectiveness has been continuously improved, which helped the bank to be ranked at the top group in 2018. TCB achieved this success thanks to the strategic value chain of Vingroup - Masan - Vietnam Airlines ecosystem combined with the economic growth oriented by export, consumption and real estate investment. We noted TCB has developed a coherent strategy to approach customers, which can create high-quality products suitable for each customers segment. The bank is currently the pioneer in some core business segments: Market share ranking No.1 in mortgage loans; advisory and brokerage involved in corporate bonds; bancassurance fee; ranking at the top in transaction banking growth. Effective operating model and dynamic BOM are the premise for the current result. Strong capital base, guaranteed asset quality and the viable strategy are the foundation for

Thanks to long-term relationships with military enterprises such as Viettel, Vinacomin, Saigon New Port, Vietnam Helicopter,… MBB has become the leading bank in terms of CASA, ranked 2nd in terms of average funding cost and among the top group of high profitability/assets with the results in 2018 of 33.5%; 3.48% and 1.83% respectively. This has been the biggest competitive advantage of MBB in the competition for credit market share and other activities. The growth in personal consumer loans focusing on mortgage loans and consumer unsecured loans at MCredit are two main highlights in the trend of shifting to retail credit. In addition, the boosting of Non-NII from life insurance with MB Ageas and payment activities will help the bank diversify revenue sources and minimize risks. These will be two important motivations for MBB's activities in the coming years. We expect a stronger transformation of MBB as it took place in 2018 under the leadership of the first CEO in the his

Overall demand is still healthy based on population growth, an increase in urbanisation rate and a rise of middle income class. Demand for the affordable and mid-range apartments in the West of Hanoi remains high, while in the center, high-end condo and landed property segments are expected to grow robustly. VPI’s current portfolio consists of about 18 projects and some unpublished projects with the total square up to 230 hectares. This land bank is sufficient for the next five years of development. Most of VPI’s projects are located in high demand areas of Hanoi with an ease to access transportation networks, public infrastructure and business center. VPI has an advantage to execute the projects due to low land costs by doing the Build-Transfer projects and getting land in exchange for infrastructure. We estimate the Company’s revenue in 2018 is approximately VND2,143 billion, up 144.8% y-o-y; profit after tax reaches VND593 billion, up 40.7% y-o-y, mainly from low-rise