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[Long's View] End Of Midyear 2018 Earning Season ( VSC ) 07.08.2018 (Delayed)

Summary

Today hot news is Iran. The first batch of American sanctions on Iran has come into effect, 90 days after the U.S. withdrew from the nuclear deal.

VSC Vinconship (VND 38.600 -1.8%, marketcap USD 85 million) Update 2Q2018 results. In 2Q2018, VSC recorded revenue and NPAT of VND 430 billion (+ 27.3% qoq) and VND 103 billion+47%qoq.

End of midyear 2018 earning season. Up to now 722/750 companies which listed in HNX & HSX have announced their Q2.2018 numbers.

These 722 companies record a 22.2% gain in PAT vs Q2.2017. Most of the rise in PAT are from Real estate (VHM, VRE, NVL), Bank (VCB, BID, MBB, VPB, TCB, HDB…), GAS, HPG, MSN, REE and MWG.

Dear Value Clients and partners;

  • Today hot news is Iran. The first batch of American sanctions on Iran has come into effect, 90 days after the U.S. withdrew from the nuclear deal. Unless Iran complies with the U.S. demands, far-tougher steps will take effect on Nov. 5, when the U.S. will cut off Iran's oil exports and impose sanctions on shipping. In 2012, the imposition of tough sanctions targeting Iran's oil industry cut the country's exports by around 1 million barrels a day.
  • In Vietnam, market drops slightly with some help from Finance (+0.48%) again the rest of the sectors (there is some rumor on credit growth, bank sell their investment). Loser side is led by consumer discretionary (-2.15%), utilities (-1.5%) and real estate (-1.49%)

Today’s Markets

  • Indexes : VN-Index -0.36%, HNX-Index 0.11%, Upcom 0.1%
  • Active : VNM, VCB, HPG, VIC, GEX HNX: PVS, ACB, SHB, SHS, MST
  • Index movers : Leader: VCB, MSN, BID, BVH, CTG Laggard: VNM, VHM, GAS, VIC, PLX
  • Foreigner, Buy: MSN, VCB, GAS, VJC, PLX Sell: VNM, VIC, HPG, DHG, PVD
  • Notice stocks : VNM, VCB, GAS, MSN, CTD, DHG, BVH, MST, DGC, MBG
  • Trading volume : ~ 213.1 million shares
  • Trading value : VND 5,593.8 bil ~ 245.3 USD mil -> thanks to VIC, NVL put through
  • Foreigner transaction Net: -3.1 mil USD Sell 72.8 USD million and Buy 69.7 USD million
  • Derivative market : Total contracts: 84,292 contracts, Trading value ~ USD 345.6 million,
  • VN30F1808@ 934.5; VN30F1809@ 933; VN30F1812@ 932.5; VN30F1903@ 935

Corporate update:

  • VSC Vinconship (VND 38.600 -1.8%, marketcap USD 85 million) Update 2Q2018 results. In 2Q2018, VSC recorded revenue and NPAT of VND 430 billion (+ 27.3% qoq) and VND 103 billion (+ 47.6% qoq) respectively. The main growth in revenue and profit is due to a 35% increase in container throughput and a decrease in operating cost.

Container throughput reached 518,000 TEUs (+ 35% qoq). In 1H2018, the output of Green Port reached 166,000 TEUs (+ 20% qoq), VIP Green Port reached 352,000 TEUs (+ 50% qoq). Year-end forecast of output would be around 1,000,000 TEUs.

The selling price was not much changed compared to last year. Because the price is on the floor, it would not reduce anymore. Therefore, it is expected to remain until the end of 2018. Currently, VSC's average price in the two ports is about 0.83 million VND/TEU. (The price in VIP Green Port is about 1 million VND/TEU).

It is expected that in 2022, VSC would build two more wharves in Lach Huyen port to increase their capacity.Lach Huyen has 25 terminals (2 government terminals - capacity is currently about 300,000 TEUs per year). VSC expects to build two more wharves, increasing capacity by 1,000,000 TEUs until 2022.

BSC forecasts that VSC will record revenue and NPAT in 2018 of VND 1,382 billion (+ 6.07% YoY) and VND274 billion (+ 3.8% YoY) respectively, equivalent to EPS 2018 of VND 4,422/cp. Currently, VSC is trading at P/E of 7.64x and P/B of 1.29x.

Comments:

  • End of midyear 2018 earning season. Up to now 722/750 companies which listed in HNX & HSX have announced their Q2.2018 numbers. Among them, 55% have growth vs Q1.2018 and 52% have growth vs Q2.2017. These 722 companies record a 22.2% gain in PAT vs Q2.2017. Most of the rise in PAT are from Real estate (VHM, VRE, NVL), Bank (VCB, BID, MBB, VPB, TCB, HDB…), GAS, HPG, MSN, REE and MWG. Top losers includes TTF, HVG, AGF, VIS and PVD. As 96% of listed companies has announce their Q2 results, the earning will likely run out of steam.

  • More on BSC’s macro and market report here and Sectors Outlook report Q3.2018 here

Graph of the day: Iranian oil flows could begin to dry up

olala.png

Source: Opec, bloomberg

Please Support BSC at Asiamoney's Brokers Poll 2018 Asiamoney Brokers Poll 2018 (it should only take about 5 minutes)

Cheers

Tran Thang Long (Mr.)

Head of Research and Institutional Clients-----------------------------------------------BIDV Securities Company (BSC)