Company Report

Vietcombank asset quality ranks in the top group of the whole banking system, which is not only reflected in the low indicators of bad debt or troubled asset, but also in high annual quality of guaranteed asset, strict risk management process and safe securities portfolio. Although VCB is not at the top in terms of asset size or net interest margin (NIM), VCB is showing its profitability at the top of the sector and outstripping other banks in EBT. Although originated as a wholesale bank but with special competitive advantages such as low cost of capital, good asset quality, wide network and convenient payment infrastructure, VCB has many opportunities to soon become the leading bank in retail banking scale, and ousted private commercial banks. VCB currently holds the leading position in payment services for both individual and corporates. In particular, payment services, trade financing and foreign exchange trading will continue to contribute enormously to the bank’s income thanks t

KBC is a leading company in industrial real estate with a land bank of 5,174ha, accounting for 5.5% area of the state-owned industrial park land (IPL) and 1100ha of urban area land (UAL) from the North to the South, which is sufficient enough for the company to develop in the next 10 years. According to our assessment, KBC’s IPL leasing segment has been benefited from (1) FDI flow into Vietnam still sees a positive growth (2) Available large land bank (3) Northern infrastructure has gradually been improved(4) Manufactures from China have been moved to Vietnam (5) The number of satellites of Samsung and LG increased. However, we assess that the revenue gains from IPL leasing may saw a dip 2019 as the remarkable industrial parks such as Que Vo and Trang Due almost achieved the maximum occupancy rates in the previous years. Meanwhile, earnings from sold land of Phuc Ninh urban area is expected to go up. In 2019, KBSV forecasts KBC revenue will reach VND2,403 billion (+4% yoy) and NPAT

Founded in 2007, with the first flight taking off in 2011, after 7 years of operation, VJC has become the second biggest aviation company in Vietnam. In 2018, VJC ranked second in terms of market share (40.1%), after Vietnam Airlines with 43.1%. Revenue in 2018 of passenger transport reached VND 25,031 billion, up by 48.5% yoy, CAGR in four years hits 44%. VJC’s strategy turning to stimulate operation in the international market is very potential with CAGR reaching 138.6% in 2014-2017. Low operating cost can be considered a strong competitive advantage thanks to young fleet age and low labor costs together with high aircraft operating efficiency. Revenue of the ancillary segment in 2018 hit VND 8,370 billion, gaining 52.8% yoy, four-year CAGR was 63.1%. Focusing on international markets will boost ancillary growth due to higher demand in the international market compared to the domestic market. 2018 revenue gained from aircraft sale was VND 18,512 billion, losing 6.2% yoy, four-ye

Founded in 2007, with the first flight taking off in 2011, after 7 years of operation, VJC has become the second biggest aviation company in Vietnam. In 2018, VJC ranked second in terms of market share (40.1%), after Vietnam Airlines with 43.1%. Revenue in 2018 of passenger transport reached VND 25,031 billion, up by 48.5% yoy, CAGR in four years hits 44%. VJC’s strategy turning to stimulate operation in the international market is very potential with CAGR reaching 138.6% in 2014-2017. Low operating cost can be considered a strong competitive advantage thanks to young fleet age and low labor costs together with high aircraft operating efficiency. Revenue of the ancillary segment in 2018 hit VND 8,370 billion, gaining 52.8% yoy, four-year CAGR was 63.1%. Focusing on international markets will boost ancillary growth due to higher demand in the international market compared to the domestic market. 2018 revenue gained from aircraft sale was VND 18,512 billion, losing 6.2% yoy, four-ye

Revenue and profit of DXG showed positive growth in 2018./ All business fields had stronger growth than in 2017./ Revenue from LDG projects gain damatic revenue for DXG.

Revenue in the 4Q.2018 was VND1,560 bn, gaining by VND436 bn, equal to 39% QoQ. The company growth included: (1) Nearly VND285 bn revenue from mobile phones, accounting for 65% growth; (2) about VND69 bn from offic and increasee equipment (15.9% growth); (3) approximately VND87 bn (20% growth) achieved from laptops and tablets. In 2018, DGW recorded an impressive growth with revenue hitting VND 5,943 bn (+56% YoY), NPAT reaching VND109.2 bn (+39% YoY), which met the target of 126% and 108% for 2018. Mobile phone segment still had the highest proportion of the total growth. As compared to 2017, revenue from mobiles surged by 213% to VND2,355 bn, hitting 196% of the plan. Laptops & tablets and office equipment also surpassed the expected target with 104% and 111% of planned revenue in 2018. Operating cost increased since the company continued to invest and develop consumer goods industry. In 2019, DGW expects to raise 20% revenue, equivalent to VND7,150 bn, and 25% of NPAT

Revenue in 2018 was about VND8,000 bn, increasing by 50% yoy, 33% more than expected. This was achieved by boosting the production in Factory No.6 and No.7. The production was 86,500 tons, up by 14% yoy, revenue from packaging rose by 40% yoy, equal to VND 800 bn. NPAT is forecasted to reach VND200 bn, decreasing by 24% yoy, only completing 60% of the previous plan. The plunge in NPAT was triggered by: (1) gross profit margin went down due to the policy on cutting sales, raising competitiveness to boost the production in the two news factories No.6-7 to the maximum level. (2) The trade segment has not achieved the expected results because the contract on buying PP resin produced by Binh Son Petrochemical Refinery (BSR) was delayed due to prolonged procedures. (3) The key projects at An Phat Complex Industrial Park are not profitable. In 2019, AAA has set its business plan with positive prospect. In particular, the expected revenue is VND10,000 bn, up by 100% yoy and NPAT i

TNG’s main business are outsourcing, producing jackets and chinos under FOB convert and CMT for export market, . The company also have its own brand name - TNG fashion with over 40 stores nation while, mostly located in the North of Vietnam. Export market accounts for 96% of 2017 sales structure, in which 53% goes to EU and 33% to North America. TNG works with various famous brand names, among which Decalthlon brings the most revenue of 44.02%.  TNG is still in the process of expanding production to meet the free trade agreement, particularly EVFTA which is favourable to the company as its largest market is EU. The focus on large clients is to help the company improve its gross margin as well as increase its net profit margin as a substitute for regular CMT orders. In addition, TNG is aiming to affirm its position in the domestic market with its chain of TNG Fashion Store.  The company won the tiltle of one of the 30 most transparent listed companies on HNX 2016 and top

In Q1.2018, evenue of the company reached to 12.121 billion(+1% YoY). If excluded revenue from cow farms and sugar, the result may decreased 2% compared to a high Q1- 2017 base due to a weak consumption of dairy product in the North as a result of a long cold season. Also, we believe that this low pace in domestic dairy revenue growth was affected by the fact that high base in Q1.2017 was partly driven by sales in Q4.2016 to be transfered. Net profit declined to VND 2,683 bn, by 8% YoY, of which downward trend was partly owe to a reduction in export sales mainly to Iraq (which make up over 70% export market of VNM), whose internal situation still remains instable. The first quarter of 2018 witnessed a downtrend in the GPM, 45.3% compared to that of 48.2% in same period in 2017. This resulted from the contribution from the highmargin market dwindled (like Iraq) and the hit from sugar business while domestic’s GPM remain stable. Accordingly, in Q1 2018, Vietsugar incurred