Company Report

For 2019, AAA set revenue and net profit targets at VND 10 trillion and VND 510 bn, equivalent to a stellar growth outlook of 25% and 140% YoY. At the current price, AAA is trading at a 2019 PER forward of 7x. This multiple is reached given the assumption that AAA would accomplish its 2019 profit guidance. Excluding the profit from industrial park lease, 2019 PER then would be 11x.

In 2018, the total gross premium of the Vietnamese non-life insurance market was estimated at VND 45.7 tn, at +10% YoY. The growth was slightly lower than 2017 results, at +10.61% YoY. Compensation ratio of the sector was 42.6%, higher than the 40.4% level attained in 2017. At the current trading price of VND 38,900 per share, PVI is trading at 2019F PER and PBR of 16.5x and 1.26x respectively, based on the company’s plan. The price is equivalent to 2018 PBR and PER at 1.28x and 16.2x respectively, compared to peers’ averages (excluding BVH) at 1.06x and 21.9x.

CTD recently held its AGM. During the meeting, the vote proposal regarding the merger with Ricons was abruptly withdrawn by the BoD, spurred by Kusto Group’s (Kusto) statement that it intends to vote against the merger. Kusto’s decision was a shocker, and consequently negatively surprised the market. CTD also provided its 2019 guidance during the meeting, with revenue of VND 27tn, (-5.5% YoY) and an NPAT target of VND 1.3 tn, (down -14% YoY). The lower guidance was due to the current state of suspension and delays of several projects.

At the current price of VND 41,000/share, HVN is trading at TTM core lease-adjusted EV/EBITDAR metrics of 6.7x (vs. VJC: 7.9x) and current P/B ratio of 2.6x (vs. VJC: 4.3x and Asian full service airline peers: 1.5x)

Management illuminated AGM attendees regarding their Q1 2019 business results, of which TOI is likely to achieve an encouraging growth of 60% YoY. Finally, with the weight of VAMC provisioning off the shoulders of the bank, we think VIB is free to achieve results that leap ahead even of this plan. For the time being, we maintain our estimate for 2019 PBT at VND 3.2 tn (+18.2% YoY). This translates into a 2019 EPS and BVPS of VND 3,288 (+17.4% YoY) and VND 16,982 (+19.6% YoY) respectively. Based on this estimate (at the current price of VND 19,000), VIB currently trades at 1.1x 2019 PBR, lower than the industry peer average of 1.5x, and providing an additional justification towards attraction for this ticker.

At the current price of VND 52,800/share, MSH is trading at 2019 and 2020 PER levels of 6.7x and 6.4x respectively. Our 1Y-target price for the stock is VND 59,500/share (+13% upside), based on the unchanged target PER level of 7.5x. Our rating for the stock is OUTPERFORM, as the stock price has increased significantly since our last call (+31% upside from our last call). MSH is still our top pick in the garment sector with solid results, a high dividend yield, and a positive outlook of expanding capacity in 2020.