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[BSC Vietnam] Who Is The Richest Man Now (DXG) 30.08.2017 (DELAYED)

|Includes: VanEck Vectors Vietnam ETF (VNM)

Summary

Indexes, VN-Index +0.60%, winner sectors are Consumer staple (0.85%) and Consumer Discretionary (+1.83%). But the true leader of today is real estate (+2.8%). Trading value: VND 4073.08~ 181.52 USD mil

DXG (VND 20,600 per share/ +3.0% / Market cap USD 267.5 million). DXG expected that the PAT in 2017 will reach VND 800 -1200 billion (+ 49% to 123% yoy)

People speculate the rise of VIC is thanks to increase in VIC’s PAT after audited. Anyway, Mr Pham Nhat Vuong is back on the top list of richest man inVN

Dear   Partner 

  • Vnindex have a recover section after the sales off (which believe was due to ETF) with 7/10 sector ended in the green. Again, among winner sectors are Consumer staple (0.85%) and Consumer Discretionary (+1.83%). But the true leader of today is real estate (+2.8%), thanks to strong breakout of VIC (+7%) which we mentioned in last week email. At the same time, Retail suffered current drop in pennies and speculative stocks.

Today’s Markets:

  • Indexes, VN-Index +0.60%, HNX-Index -0.17%,  Upcom -0.18%
  • Active: HOSE: FLC, HQC, HAI, FIT, OGC.   HNX: SHB, KLF, VCG, ACB, DST.
  • Foreigner, Buy: VIC, CTD, VNM, DXG, HSG.  Sell: NVL, VCB, HBC, SKG, SCR.
  • Notice stocks: FLC,  MWG, HPG, HBC, CVT, DST, PIV
  • Trading volume: ~243.32  million shares
  • Trading value: VND 4073.08~ 181.52 USD mil
  • Foreigner transaction Net: 3.22  mil USD Sell 10.48 USD million and Buy 13.70 USD million

 

Corporate update:

 

  • DXG (VND 20,600 per share/ +3.0% / Market cap USD 267.5 million). DXG is a well-known brokerage company with 14 years of experience. DXG currently has 22 residential project under development.

 

Secondary activity eventfully took place in the first half of the year. Revenue of real estate sector (including secondary and brokerage services) reached VND 445 billion (+81.6%).The total number of DXG apartments sold in 6M2017 is 5,743 units (+ 109% yoy), of which 2,100 units belong to secondary projects, 600-700 units are DXG's primary projects.GP margin of real estate brokerage service was 76.08%, higher than the same period 6M2016 (64.18%). Revenue from sales of apartments, townhouses and land plots (DXG's primary projects as investors) was VND388.64 billion, down from 6M2016 because DXG recorded only the rest from the Luxcity project, while at the same period of 2016, there were the Sunview Town and Gold Hill projects recorded. GP margin of primary activity was 37.56% (6M2016 was 23.65%).

DXG expected that the PAT in 2017 will reach VND 800 -1200 billion (+ 49% to 123% yoy), equivalent to EPS of 2017 at VND 2,641-3,961. BSC expected that the profit of whole year will be mainly reached in Q4 / 2017. In 2H17, DXG will recognize 100% of the Opal Riverside project (PBT of around VND383 billion) and 50% of the Opal Garden project (PBT of VND106 billion). Besides, DXG will keep recording the revenue from secondary projects

The high growth rate of PAT will continue to be maintained in 2018. With 5 projects in operation (Opal Garden, Opal Sky view, Opal Tower, Lux Garden and Lux Riverview), BSC predicted that PBT from secondary project which can reach VND 600 billion will be the main source of income for DXG in 2018. In current, DXG has planned to deploy about 9 projects and clear landing bank in secondary province for the next 5 – 7 year plan. The goal of DXG is to focus on the B / C segment - which reflects the real needs of the people, thus less risking from the real estate business cycle and lessening competitive pressure when the second home tax is available which directly affect the middle and high-end segment.

Comments:                                                         

 

  • Who is the richest man now? When you ask a crowd who is the investors, I guess most people will raise their hand. But what happen in the market show that most retails are running for a quick profit. The top speculative stocks have gone through many up and down lately, and likely to be continue this way for some time.  In the meantime, People speculate the rise of VIC is thanks to increase in VIC’s PAT after audited. Anyway, Mr Pham Nhat Vuong is back on the top list of richest man of the market again.

 

Cheers

 

Long Tran

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