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[Long's View] June In A Minute (HPX) 03.07.2018 (Delayed)

Summary

Like many other cities around the globe, Hanoi sweats through one of the hottest day in decades while northern mountain areas suffer heavy flooding. It would be great if youcandonante.

HPX: Hai Phat Invest Jsc New kid on the block. Hai Phat is one of the leading real estate companies in the Northern market Its current land area consists of.

Trade war worries depress Asian markets to a 9 month low. Despite quite good macro economy news was announced, Vietnam stocks market also plummeted with low liquidity in equity market.

Market flash: Vnindex down -1% (mom), -2.38% (ytd) vs Hnxindex -7.6% (mom) -9.15% (ytd), June foreigners net bought USD 85 million thanks to YEG (yeah 1) market cap USD 142 billion, daily liquidity USD 350 million, PE ratio 18.11 with VNindex.

Macro flash: GDP Q2 6.78% (qoq), PMI highest since 2011 at 55.6, FDI + 8.4% (yoy), net import USD 100 million (ytd net export USD 3.1 billion), 6months export climb 16% (yoy) vs Import climb 10%; foreign exchange reserve rise to USD 64 billion, Q1 credit growth + 6.35% (yoy), interest rate flat, CPI climb 0.61% (mom) ~ 4.67% (yoy), USD/VND climb around 1%, free market exchange rate climb.

Dear Value Clients and partners;

  • Like many other cities around the globe, Hanoi sweats through one of the hottest day in decades while northern mountain areas suffer heavy flooding. It would be great if you can donate to relieve the heavy flooding damage. Back to the market, one of the worst day, the most outperforming sector still lose -1.01% (consumer staple). The rest were heavily beaten, lagged by Finance (-5.42%), real estate (-5.71%). Even Energy sector drop -4.25% despite the strong rise of wti lately.

Today’s Markets

  • Indexes : VN-Index -4.43%, HNX-Index -3.86%, Upcom -1.69%
  • Active : HOSE: VIC, CTG, HPG, VCB, VNM HNX: ACB, SHB, VGC, PVS, TTB
  • Index movers : Leader: BHN, LGC, SBT, SII, DBD Laggard: VHM, VIC, GAS, VCB, TCB
  • Foreigner, Buy: VCB, VNM, HDB, AAA, VRE Sell: VIC, CTG, BID, HPG, STB
  • Notice stocks : VIC, CTG, TCB, SSI, MBB, BID, MWG, ACB, SHB, TTB
  • Trading volume : ~ 237.4 million shares
  • Trading value : VND 5,454.5 bil ~ 239.2 USD mil
  • Foreigner transaction Net: -15.9 mil USD 52.7 USD million and Buy 36.8 USD million
  • Derivative market Total contracts: 139,390 contracts; Trading value ~ USD 556.4 million;
  • VN30F1807@ 890.1; VN30F1808@ 891.1; VN30F1809@ 893.9; VN30F1812@ 892.1

Corporate update:

  • HPX: Hai Phat Invest Jsc New kid on the block. Hai Phat is one of the leading real estate companies in the Northern market Its current land area consists of 4,936 ha. Total floor area: Hai Phat reached 503,113 m2; Subsidiaries - associates reached floor area of 342,470 m2.
  • HOSE listed: The Company plans to issue 150 million shares with HPX listing code. Total expected value is VND 1.5 trillion. Hai Phat planned to conduct its IPO during the first half of July.
  • Shareholders structure: Chairman and other related parties (58.97%), employees (8.78%), Dragon Capital (15.00%), other shareholders (17.25%).
  • Real estate business: VND 2,900 billion (+ 89% yoy), from business and financial activities: VND 390 billion, EBT of VND 562 billion (+ 44% yoy) and EAT VND 450 billion (+ 40% yoy). 2018 dividends - 15% by stock.
  • Projects to be recorded in 2018: Total revenue reached VND 3,380 billion. Of which: The Vesta (VND 1,293 billion), Luong Phu Urban Area (VND 1,159 billion), Roman Plaza (VND 736 billion), Trau Quy ( VND 198 billion). The company plans to record total revenue of VND 4,338 billion dong in 2019. BT projects: Ha Dong BT project and the Ha Tay Truc Phia Nam BT project are carrying out site clearance phase.
  • Capital mobilization: will issue VND 1,000 billion of 5-year corporate bonds with the first year interest rate of 10.85%, the following years will be 3-5%. In addition, the company will raise capital from 1,500 billion to 2,500 billion, divided into two phases. Phase 1: VND 1,500-2,000 billion, bonus shares for shareholders. Phase 2: VND 2,000-2,500 billion issuing private placement and or rights to buy for existing shareholders.

Comments:

  • June in a Minute. Macro flash: GDP Q2 6.78% (qoq),PMI highest since 2011 at 55.6, FDI + 8.4% (yoy), net import USD 100 million (ytd net export USD 3.1 billion), 6months export climb 16% (yoy) vs Import climb 10%; foreign exchange reserve rise to USD 64 billion, Q1 credit growth + 6.35% (yoy), interest rate flat, CPI climb 0.61% (mom) ~ 4.67% (yoy), USD/VND climb around 1%, free market exchange rate climb. Market flash: Vnindex down -1% (mom), -2.38% (ytd) vs Hnxindex -7.6% (mom) -9.15% (ytd), June foreigners net bought USD 85 million thanks to YEG (yeah 1) market cap USD 142 billion, daily liquidity USD 350 million, PE ratio 18.11 with VNindex.
  • Trade war worries depress Asian markets to a 9 month low. This Friday, the U.S. is set to apply tariffs to $34B worth of Chinese goods, while China imposes a 25% tariff on a wide variety of U.S. products. People concern about the exchange rate (due to the fact that the Yuan fell past 6.7/dollar, and Asian currencies fell lately). The combination of tension in Asia markets and domestic market worries the market. Despite quite good macro economy news was announced, Vietnam stocks market also plummeted with low liquidity in equity market and high liquidity in futures market, leave June as an unforgettable month.

Graph of the day: EM performance and outflows

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Source: ETIG Database

Cheers

Tran Thang Long (Mr.)