Research center

We raise our 2019 year-end range for the VN-Index to 970-1,010 from 940-1,000 as rate cuts from central banks and a partial US-China trade deal improve market conditions. Although we are looking for quieter performance in 4Q, this will likely only be a pause for the market and our outlook remains positive. Sectors we view as Positive include: power, IT, and retailing but are more selective for banks in 4Q. We are Neutral on industrial parks. Any sustained move above 1,000 in 4Q likely capped. As sentiment peaks for these events, we do not rule out short-term moves above 1,000 but concerns of a standstill in US-China trade talks, disappointments on Fed rates cuts, and growing evidence of a global slowdown in 2020 are likely to continue to weigh on market sentiment in 4Q and limit any gains. Large caps should continue to lead the market and our expectations for an unexciting 3Q earnings season for the lagging mid-caps will likely make it difficult for performance to catch up with large-

SCS is currently the 2nd largest cargo terminal operator in Tan Son Nhat International Airport. In 6M/2019, revenue hit VND361.8 billion, gaining 15.1% yoy; NPAT hit VND239.8 billion, rising 20.9% yoy. The growth force comes from the investment in cargo terminal Phase 2, raising capacity to 350,000 tons/year. SCS has had a high dividend payout ratio Risks

Hoa Phat is a construction steel and steel pipe manufacturer with the largest market share in Vietnam. When the Dung Quat Hoa Phat Project is completed, Hoa Phat’s steel production will be tripled Large production scale and BOF technology help HPG save production costs Investment risks

Leading company in retailing and electronics with a business system spreading over 63 provinces DMX is the core business of MWG Bach Hoa Xanh is expected to the key force of growth for MWG in the future BHX sets a target to break even at stores and distribution center at the end of this year Risks are always existing

The total number of ship arrivals at Hai Phong ports in 6M 2019 decreased by 1.76% yoy. The competition among Hai Phong ports become fiercer In the long-term, Lach Huyen will be the focus of development in Hai Phong port area

Revenue in 1H2019 gained 5.1% yoy, NPAT rose 12.9% yoy, completing 109.4% profit plan of the year Revenue from crude oil transportation climbed 34.2% yoy in 1H2019 with a force from oil transportation to Nghi Son Refinery. Revenue from finished oil transportation climbed 15.3% yoy. Revenue from LPG transportation reached VND581 billion, equal to 48% revenue recorded in 2018. Revenue from coal transportation increased 33% yoy, GPM hit 12.8%, surging over the same period with only 7%.

IIP in August was still positive thanks to a surge in coal production and an moderate increase in mobile phone production. PMI in August tumbled over July, mainly because of the weakening signs in investment goods.

Inverted yield curve is dangerous, and Fed is responding slowly Fed has to cut interest rates at least twice this year If a recession occurs, the lag will be much later than that in the past The risk of a recession of the US economy is not high in 2019-2020 and the US stock market still has room for development

VIB holds the no.1 market share in Vietnam car loans market; Consumer finance still has a great potential for growth In case of stable macroeconomic condition, we forecast an average growth of at least 20% per year in the next 2 to 3 years However, VIB could be strongly hit by its unstable mobilization structure if the economy slows down BUY recommendation for the last 2 quarters of 2019. Investors are advised to maintain an overall low weight for banking stocks

GMD is the biggest enterprise in port operation among listed companies Nam Dinh Vu Port is a growth driver for GMD in short and medium terms Gemalink project has a positive outlook and is expected to boost GMD growth in the medium term The lowest charges of international container handling at Hai Phong – Cai Mep ports increased by 10%. Risks