Strong at the end of the session, VN-Index gained 6 more points even though the number of gainers was equal to the number of losers
Although on HoSE, the number of losers was equal to the number of gainers, but the VN-Index still gained 6 points. Mid-cap stocks rebounded strongly as VNMID-Index gained 1.28%.
Strong at the end of the session, VN-Index gained 6 more points even though the number of gainers was equal to the number of losers
Session 9/6, VN-Index increased 6.21 points, or 0.56%, to 1,107.53 points. This increase was quite surprising because it came from the strong pull at the end of the session.
Bank stocks diverge. In general, stocks in red only decreased slightly, while stocks in green had quite a number of significant gainers, such as TCB up 2.05%, MBB up 1.25%, STB up 1.81% , VIB increased by 2.41%, TPB increased by 1.36%, MSB increased by 3.15%, LPB increased by 3.41%.
Securities stocks traded quite positively when SSI increased by 3.91%, VND 4.7%, HCM increased 1.92%, VCI increased by 2.35%, VIX increased by 4.67%, CTS increased by 2, seventy three%.
The real estate group recorded an alternating increase and decrease, in which, losers had a narrower fluctuation band than gainers. Some impressive names can be mentioned: NVL increased by 2.82%, HDG increased by 4.17%, PDR increased by 3.68%, QCG reached the ceiling price.
The production team got better. Accordingly, VNM increased by 0.46%, HPG increased by 0.44%, MSN increased by 2.82%, GVR increased by 0.28%, SBT increased by 4.27%, IMP increased by 5.35%, RAL increased by 5.76 %; DGC, DHG, BMP all hit the ceiling price. On the other side, SAB dropped 0.19%, VHC dropped 0.82%, BHN dropped 1.15%.
Retail stocks traded positively with MWG up 1.85%, PNJ up 0.56%, FRT up 1.57%. Less positive was energy stocks when GAS gained 0.11%, PGV stood at the reference price while POW and PLX fell 0.36% and 0.78% respectively. Meanwhile, aviation stocks were negative as VJC and HVN lost 1.23% and 1.1% respectively.
On the HoSE, 190 stocks increased, 54 stocks stood at the reference price and 191 stocks decreased. Order-matching liquidity dropped sharply compared to the previous session, but still remained at a high level, reaching VND 15,081 billion.
Recommended stocks for today 9/6: DGW, PVS and C4G
VNDirect estimates DGW’s 2023 net profit will decrease by 28.8% y/y due to weak consumer demand but will grow back to 23.3%/year in the period 2024-2026. recommend this stock with a target price of VND 44,400/share.
Recommended stocks today (June 9): DGW, PVS and C4G.
DGW: VNDirect recommends positive, target price is 44,400 dong/share
Digital World Joint Stock Company (Digiworld, HoSE: DGW) has grown strongly with revenue reaching a compound growth of 38.6% in 2018-2022 to become an ICT (information technology products) distributor. leading in Vietnam, surpassing FPT Synnex and PET in terms of revenue. Currently, DGW is the distribution enterprise with the largest number of POS with 6,000 (PET:1,700; FPT Synnex: 3,800), dominating the Xiaomi product market share (approximately 80%) as well as being one of the distributors. Apple’s major authorization in Vietnam.
In its analysis report, VNDirect Securities Company pointed out that with a population of more than 100 million people and a young demographic with 70% under 35 years old, in which, the majority of the population grasps about technology trends, as well as the growth of e-commerce and the expansion of the middle class, are stimulating demand for a wide range of consumer and home electronic products with a sustained growth rate of 6%-10% per year for the period 2023-26, according to Euromonitor. Therefore, distributors like DGW, with their ability to provide a comprehensive chain of distribution services, from market research to after-sales service, have been proven by building the Xiaomi brand from scratch. top 3 in the smartphone market in Vietnam, will be ready to reap success in this fertile market.
However, this securities company also pointed out that DGW is facing a challenging year in 2023 when people’s consumption declines and consumer finance tightens for non-essential products. Accordingly, the unit estimates that DGW’s revenue/net profit will decrease by 2.8%/28.9% year-on-year in 2023, before returning to the growth cycle from 2024.
In 2024-2026, when ICT demand recovers, especially for Xiaomi and Apple products, combined with DGW’s expansion into other business segments, such as home appliance products (Whirlpool, Xiaomi…) , consumer goods (beverage) and industrial equipment through Achilles merger, will help DGW’s revenue/net profit growth can reach 11.9%/23.3% per year in the period 2024 -2026.
VNDirect estimates DGW’s 2023 net profit will decrease by 28.8% y/y due to weak consumer demand but will grow back to 23.3%/year in the period 2024-2026. This ticker has a target price of VND 44,400/share.
Potential upside will include higher-than-expected ICT demand, especially Xiaomi/Apple, and better-than-expected distribution expansion of new brands. Risk of downside price when ICT demand is lower than expected; brand expansion is less than expected and the distribution of brands like Xiaomi/Apple is stopped.
PVS: BSC recommends buying, raising the target price to 38,500 dong/share
In the first quarter of 2023, the net revenue of PetroVietnam Technical Services Corporation (HNX: PVS) reached VND 3,704 billion (down 2% over the same period), and profit after tax reached VND 228 billion. VND (down 9% y/y), completing 28% of the revenue plan and 41% of the full year profit plan, respectively.
This quarter, PVS signed a contract with Ørsted to fabricate and supply the stand for the Changhua offshore wind power project in Taiwan.
BIDV Securities Company (BSC) forecasts that in 2023, PVS’s net revenue will reach 21,964 billion VND (up 6.1% compared to the latest report) and profit after tax will reach 999 billion VND (up 6.1%). ), EPS FW = 1,402 VND/share. BSC revised up PVS’s forecast for 2023 business results due to the update of the newly awarded project, Changhua wind power.
At PVS, the employment outlook from the M&C segment has improved since 2023, thanks to contributions from new projects such as Su Tu Trang gas field project – Phase 2, Changhua wind power or Camel Vang. The implemented Block B – O Mon project is also considered to bring a great source of work to PVS in the near future. Besides, the power plan VIII brings a lot of potential in PVS’ M&C segment thanks to renewable energy and increased gross profit for long-term investment.
Accordingly, this securities company maintains its buy recommendation for PVS shares and raises its target price to VND 38,500/share (24% increase from the closing price on June 7, 2023 of VND 31,000/share. ) based on the FCFF valuation method. BSC raised PVS’ valuation by adding some new projects such as Changhua wind power and Block B – O Mon to the forecast.
C4G: MASVN recommends buying, 12-month target price is 16,800 dong/share
CIENCO4 Group (UPCoM: C4G) operates in many fields such as construction, selling materials, providing services (BOT fee collection, equipment leasing, office & space leasing), real estate. In which, the construction segment is the main business, usually accounting for more than 60% of revenue over the years.
In the first quarter of 2023, C4G’s revenue and net profit were at VND 460 billion and VND 41 billion, up 7.7% and 28.8% respectively over the same period. Gross profit margin improved from 17.9% to 18.7%; interest expense decreased 16% yoy, stopping at 38 billion dong. The first quarter is still the lowest quarter of the year due to the influence of the Lunar New Year, as well as many projects that were only carried out at the beginning of the year.
The value of signed contracts (backlog) of C4G is estimated at the end of 2022 at over VND 4,000 billion, more than double the revenue of the construction segment in 2022. In 2022, C4G has implemented 21 projects at the same time and completed 11/21 projects.
According to sharing from C4G’s leadership, the company’s workload is enough to operate for 3 years. New contracts signed in 2023 have better rates. C4G has also issued an additional 2:1 ratio to increase its charter capital to VND3,371 billion in order to strengthen its financial capacity to implement projects in the coming time, in the condition that interest rates are still quite high. .
In 2023, Mirae Asset Vietnam Securities Company (MASVN) forecasts C4G’s net revenue and net profit to reach VND3,381 billion and VND398 billion, respectively, up 24% and 162% over the same period. In which, the construction segment is expected to reach 2,353 billion in revenue, up 30% over the same period; sales of materials reached 241 billion dong, up 18% over the same period; gross profit margin increased from 14.6% to 19.2% and financial expense was only 163 billion dong, down 29% y/y, thanks to a 26% decrease in interest expense over the same period.
MASCN also gave a positive assessment to C4G with the expectation that construction revenue will maintain high growth in the coming years; a strong financial position creates a foundation to maintain a good growth rate; Experience in winning tenders and executing many large infrastructure projects.
MASVN also believes that C4G has recovered continuously recently and is showing signs of short-term accumulation when approaching the resistance level of VND 14,000/share. If this important resistance is overcome, the price range above will be wide and C4G will have many opportunities to break through.
Accordingly, this securities company recommends buying C4G, the target price (12 months) is 16,800 VND/share.
Thuduc House plans to make 18 times more profit 2023
Thu Duc Housing Development Joint Stock Company (Thuduc House, HoSE: TDH) has just announced the documents of the Annual General Meeting of Shareholders scheduled to be held on June 29.
Thuduc House (TDH) plans to make 18 times profit in 2023.
In 2023, Thuduc House set a revenue target of more than VND 440 billion, an increase of 155% compared to the implementation of 2022; profit after tax of shareholders of parent company reached 88.1 billion dong, nearly 18 times higher than last year.
Thuduc House said that in the coming time, the company will focus on implementing existing projects and land plots. In the next two years (2023-2024), the company will develop according to the principles of safety and sustainability, creating stability for development when the market is favorable.
The company will also coordinate to implement projects that have been backlogged for many years such as Long Hoi Housing Project, Long An Zone 2 (Thuduc House cooperates with the investor, PPI Company), housing project 10 ha Hiep Binh Chanh, 3.3 ha Hiep Binh Phuoc residential area project, 1,778 m2 commercial center of Phuoc Long Spring Town project (Phuoc Long B ward, Thu Duc city).
In addition, the company will continue to contact agencies and departments and coordinate with related units to regain control of the Thu Duc Agricultural Wholesale Market, deploy business activities in areas where the market is located. land belonging to Thu Duc Agricultural Wholesale Market.
At the same time, looking for land funds of reasonable value, potential for development in the near future (expected period 2025-2040).
On the eve of the Annual General Meeting of Shareholders, on June 7, Mr. Nguyen Huy Hoang, Chairman of the Board of Directors, submitted his resignation from the position of Chairman of the Board of Directors as well as a member of the Audit Committee of this enterprise. In his resignation letter, Mr. Hoang said that he had his own business plan, so he could not continue to hold positions at ThuDuc House. Mr. Hoang hopes to be approved to withdraw from the Board of Directors and terminate his position as a member of the Board of Directors from the date of approval by the General Meeting of Shareholders.
It is known that Mr. Hoang was born in 1975 with a bachelor’s degree in economics. He was appointed Chairman of the Board of Directors of Thuduc House and member of the Corporate Audit Committee in June 2022 while holding the position of an independent member of the Board of Directors of this company. At that time, within only 4 months, Thuduc House changed the chairman 3 times.
In terms of business situation, by the end of 2022, Thuduc House’s revenue reached VND 177 billion, down more than 60% compared to the previous year. Due to not recording many unexpected expenses, the company recorded a profit of more than 13 billion dong.