Company Report

Vietnam Travel and Marketing JSC – Vietravel (VTR: UpCom) was established in 1995 initially as a state-owned enterprise (SOE) under the Ministry of Transport. Since the beginning, VTR’s core business has been organizing travel tours for group tours and single travelers alike. In 2018, tours accounted for 77% of total revenue. Besides its core business, VTR provides other services such as car rental, labor export, air tickets, and its overseas study consultancy, which accounted for 23% in total. At a listing price of VND 40,000/share and according to the company’s 2019 guidance, VTR is trading at a 2019 forward PER level of 7.8x. VTR valuation seems to be low when compared to peers. Yet, it should be noted that the market price of Fidi Tour (FDT VN Equity) and Ben Thanh Tourist (BTV VN Equity) has a low trading volume and is not representative as a current market price.

Military JSCB (MBB: HOSE) posted robust PBT growth, with a consolidated pretax profit (PBT) of VND 7.767 tn (+68.3% YoY). Again, this growth level is something we expected (i.e. 2018 PBT of VND 7.626 tn) as stated in previous report, but it’s worth reiterating that this kind of growth trounces 2017 PBT growth levels of 26.4% YoY. Parent bank PBT also grew 31.3% YoY to VND 7.03 tn. Similar to 2017, earning growth is driven by customer loan growth, especially individual loans, and NIM expansion. Non-NII also showed an outstanding growth at 87% YoY, resulting in 25% of Total operating income (TOI). CIR was higher as expected (i.e. 44.7%). Provision expenses were slightly higher than forecasted. At VND 22,050 per share, MBB is currently trading at 2019 PBR of 1.3x. We recommend a BUY rating with a 1-year target price of VND 30,800, equivalent to PBR 1.8x.

Vinhomes JSC posted 2018 net revenue of VND 38.8 trillion, an increase of 154% YoY, which largely originated from the handover of units relating to Vinhomes Metropolis, Vinhomes Green Bay, Vinhomes Golden River and Vinhomes Central Park. As such, sales of inventories made up 92.2% of total revenue, staging an increase of 179% YoY. Meanwhile, other businesses including leasing, property management, and construction services also accelerated in 2018 due to corporate restructuring practices carried out during the year.