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[BSC Vietnam Stock Market] International Women’s Day And An Interesting Statistic (CMG) 08.03.2017 (DELAY)

Dear Value clients and partners,

· Healthcare perform well today (+0.95%) while consumer Discretionary is slightly better (+1%). That rise thanks to MWG's shop opening in Cambodia lately. Although 8/10 sectors rise, Vnindex still end in balance. Laggers of the board are energy (-0.24%) and utilities (-0.24%)

Today's Markets:

· Indexes, VN-Index + 0.01%, Hnx-Index + 0.96%, Upcom + 0.11%

· Active, HOSE: FLC, HQC, FIT, HAG, ROS. HNX: VCG, SHB, ACB, KLF, HUT.

· Foreigner, Buy: MSN, VNM, DPM, HSG, VHC . Sell: VJC, DXG, VIC, CTD, AAA.

· Notice stocks: VJC, HBC, GMD, CII, ACB, CTI, VCG => GMD jump again

· Trading volume: ~ 227.3 million shares

· Trading value: VND 4,337.03 bil ~ USD 190.2 mil => similar to yesterday

· Foreigner transaction Net: USD 0.25 mil. Buy USD 13.9 million and sell USD 13.65 mil => not very active

Corporate update:

· CMG (14,750 VND/share, -0.3%, Mkt Cap $42.4 Mil). We have a visit to CMG lately, the second biggest IT provider in Vietnam. Sales climb sharply (+22% yoy) thanks to SI and Telecom while PBT does not rise at the same page. The CFO said that margin has to drop in order to have market share rise. The dividend plan and 2017 revenue/profit outlook has not been released. CMG provided the estimated business result of full year 2016: Revenue = VND 4,427bn, PBT = VND 189.9bn (+18%). For more report of CMG (here)

Business result update. 3Q Accumulated Revenue & PBT Breakdowns (31/03/2016-31/12/206):

Segments

Revenue (VND bn)

PBT (VND bn)

SI

1,484

47.2

Software

205.6

6.2

Telecommunication

938

93

Distribution & Manufacturing

268.9

2.4

SI looks good. The current backlog for SI is around VND 700bn, (Sales expected to be VND 2,116 billion, narrow the gap with FPT, and now stand at VND 2,782 bil). The net profit margin is around 3.5%, down due to market share rising

Telecom: The project APG was completed and has been put into operation since the end of 2016. Sales is expected to be VND 1,261 bil). They now have over 1,000 corporate customers, which account for 88% of telecommunication revenue. They said that mass market is so competitive, although they have around 200k accounts. Hence, they want to focus on corporate customers rather than retail one.

Software: CMG plans to expand strongly outsourcing activities in the next year through:

- Schedules to establish CMG Global in this April (plan to have office in Japan and Singapore)

- Raise the number of employees in Outsourcing team from 120 (2016) to 200 (in 2017) and roughly 1,000 (2020).

- Target markets: Asia including Japan (60%) and other countries (40%).

Thereby, CMG expects to keep the CAGR of Outsourcing stay at 40% for the next period (2017-2020).

Comments:

· International women's day. It used to be called the International Working Women's Day and this event is a commemoration of the incident in 1908 were 129 women died in the US. It was said that these women are factory workers who have been demanding better pay, shorter work hours, voting rights, etc. The day is extremely popular in Vietnam and normally 8/3 mean more house works for man L (not for me, because I do it every day).

· An interesting statistic. Our analyst remind me that the 8th of March always mark a volatility month ahead in the last 4 years better or worse. If vnindex rise on March the 8th, it will jump sharply (and vice versa). After 08/03/2013, VNindex increased from 470 to 510 (+8.5%) in one month. Same thing happened in 2014, Vnindex rise from 580 to 610 (+5.17%) in mid-March. Sadly, from March to April in 2015 and 2016, Vnindex drop from 600 to 540 (-10%) and 580 to 550 (-4.3%) respectively after Women's day. Today, Vnindex perfectly balance at 716.6, gain 0.06 point ~ 0.01%, I wonder what does it mean for the market in the next 22 trading days.

It's true that behind every successful man is a woman who's actually getting ahead of himJ. So three cheers to the woman, happy women's day!

Best Regards,

Long Tran

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.