Good Morning Vietnam
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March 24, 2021 Good Morning Vietnam To subscribe to our report, please contact us at [email protected] Market performance VIETNAM STOCK MARKET Last trade 1D (%) 1M (%) 1Y (%) VN-INDEX 1,183.45 -0.92 1.85 79.53 Banks fell, market plunged HNX 272.34 -0.91 14.48 180.91 Vietnam stock market decreased significantly as most of major stocks went down. VN-Index UPCOM 81.14 -0.16 6.46 67.27 dropped right at the start combined with increasing volume that the loss widened during MSCI EM 1,323.77 -0.94 -3.85 65.13 the morning without any recovery signal. In the afternoon, the index moved sideways and NIKKEI 28,783.46 -0.73 -2.99 59.09 could not recover as overload problem hindered buying forces. At last, the index closed at HANG SENG 28,497.38 -1.34 -4.11 25.74 1,183.45 points, lost 10.98 points (equivalent to -0.92% DoD). As usual, the trading volume KOSPI 2,989.27 -0.51 -0.19 85.67 and value maintained at high level of 683.7mn shares and VND15,415bn, respectively. FTSE 6,699.19 -0.40 0.60 23.01 Banking and Real Estate stocks decline was the major pressure of the market: VCB (-1.24%), S&P 500 3,910.52 -0.76 -0.38 59.79 BID (-2.13%), TCB (-2.06%), VIC (-0.75%), CTG (-1.46%), VHM (-0.60%). NASDAQ 13,227.70 -1.12 -2.72 78.32 Overseas investors recorded a net-selling worth of VND288.24bn on HOSE which marked Valuation their 1-month consecutive selling. Therein, they sold VNM (VND187.4bn), CTG P/E (x) P/B (x) ROE (%) (VND76.6bn), VCB (VND31.8bn), VIC (VND29.8bn), PLX (VND28bn), YEG (VND24.7bn), etc. VN-INDEX 18.24 2.48 13.69 By contrast, MSB (VND107.4bn), MBB (VND91.1bn), ACB (VND11.5bn) saw net inflows. SET INDEX 39.38 1.71 4.34 JCI INDEX 33.26 1.61 4.12 Market highlight: Investors add to top Emerging-Market ETFs in PCOMP INDEX 28.94 1.58 6.15 US$34bn streak Investors added money to the largest exchange-traded funds dedicated to emerging Key rates markets last week, extending a 20-week inflow to the asset class as investors look past the Last trade 1D (bps) 1M (bps) 1Y (bps) Policy rate 4.00 0 0 -100 rise in U.S. Treasury yields. The market’s top two developing-nation ETFs were the main 5-year 1.10 -1 5 -109 beneficiaries of a US$2.07bn inflow to the asset class in the week ended 19 March, 10-year 2.42 -2 15 -68 suggesting broad appetite for risk. BlackRock’s US$78.7bn iShares Core MSCI Emerging Markets ETF, or IEMG, and the US$78.3bn Vanguard FTSE Emerging Markets ETF, known as FX VWO, attracted US$973mn and US$411mn, respectively. Inflows to emerging markets have Last trade 1D (%) 1M (%) 1Y (%) totaled US$34.4bn in the past 20 weeks -- of which US$17.5bn were added this year. That US$/VND 23,069 0.00 -0.19 2.09 was the longest sequence of weekly inflows in two years and comes despite the U.S. bond US$/KRW 1,134 -0.42 -1.97 10.16 market rout that has been weighing on risk assets. No country suffered significant outflows. US$/JPY 109 -0.04 -2.54 2.39 China and Hong Kong were again the places that received the most money, due to their US$/EUR 0.84 0.06 2.76 -8.91 weighting in the top emerging-market funds as well as inflows to some of the main ETFs US$/GBP 0.73 0.14 2.97 -14.36 dedicated to Chinese stocks, including the US$6.7bn iShares MSCI China ETF. Bonds also US$/SGD 1.35 -0.15 -1.98 7.43 received new cash, led by the US$17.2bn iShares JP Morgan USD Emerging Markets Bond Daily trading value (turnover) ETF, or EMB, which posted a US$381mn inflow, the second in a row. Today (US$mn) 1M Avg (mn) 1Y Avg (mn) Chau Bui, +84 28 3910 2222, [email protected] VN-INDEX 604 597 326 VN-Index valuation: 10-year band chart HNX 112 97 40 UPCOM 45 48 20 (x) P/E -2SD -1SD AVG +1SD +2SD 22 Daily foreign trading value 20 Buy Sell Net (US$mn) VN-INDEX 41.00 55.68 -14.68 18 HNX 0.8 0.4 0.4 16 UPCOM 1.6 1.0 0.6 14 12 Institutional client contacts Head of Wholesale and Korean Clients 10 Mr. Ahn Jong Hoon [email protected] 8 6 Head of Institutional (ex Korea) Mar 11 Mar 13 Mar 15 Mar 17 Mar 19 Mar 21 Mr. Steven Derek Brown [email protected] Source: Bloomberg, Mirae Asset Research See the last page of this report for important disclosures March 24, 2021 Good Morning Vietnam Short news Airlines forecast to lose over VND15tr in 2021 Vietnamese airlines are projected to post a total loss of VND15tr (US$650mn) in 2021, with their revenue continuing to plunge compared to that of last year, according to the Vietnam Aviation Business Association (VABA). The aviation sector has so far borne the brunt of three waves of COVID-19 outbreaks, which has frozen international travel. In 2M21, their international passenger throughput amounted to 66,600, down 98.8% YoY. These figures were mentioned in the VABA’s proposal for credit assistance to aviation companies, which was recently submitted to the Ministry of Planning and Investment. Vietnam may produce own COVID-19 vaccines in third quarter Vietnam expects to start producing its own COVID-19 vaccine by the end of the third quarter, according to the Ministry of Health. Currently, four Vietnamese vaccines are in development, produced by Nanogen Pharmaceutical Biotechnology JSC, the Institute of Vaccines and Medical Biologicals (IVAC), Vaccine and Biological Production Company No. 1 (Vabiotech) and the Center for Research and Production of Vaccines and Biologicals (Polyvac). Nanocovax by Nanogen entered its second phase of human trials in February 2021, while Covivac began its first phase earlier this month. Nguyen Ngo Quang, deputy head of the Administration of Science, Technology and Training under the health ministry, said the vaccine development process has been hastened while still abiding by stringent procedures. GMD: Vietnam's largest deep seaport Gemalink to reach 80% capacity in 2021 Gemalink Port, Vietnam's largest deep seaport, will put into use at least 80% of its designed capacity this year and reach its full capacity of 1.5mn TEU by 2022. These plans were shared during Vietnam Prime Minister Nguyen Xuan Phuc's inspection trip to Gemalink Port in the southern province of Ba Ria-Vung Tau. Beginning construction in February 2019, Gemalink is the biggest seaport in the Cai Mep-Thi Vai complex and one of the world’s 19 largest deep seaports with the capability to receive the world's largest ships (up to 200,000 DWT) today. Gemalink has a total investment capital of US$520mn with the first phase of US$330mn and the second phase of US$190mn. VIC VN: Vingroup Plans to Offer as Much as $500M of Overseas Bonds Vingroup JSC (VIC VN/TRADING BUY/TP: VND119,500/CP: VND106,500) plans to sell as much as US$500m of 5-year bonds in U.S. dollars in international markets in 2021 that interest rate may be fixed or floating or mix of both. Buyers can use bonds to exercise option to receive shares of Vinhomes JSC (VHM VN/TRADING BUY/TP: VND112,000/CP: VND98,700) listed on HOSE. Source: VnExpress, Fiinpro, Bloomberg, Mirae Asset Research Mirae Asset Vietnam Research 2 March 24, 2021 Good Morning Vietnam Market events Upcoming market events Ex-rights date Exercise date Ticker Exchange Event type Wednesday, March 24, 2021 3/24/2021 TLH VN HOSE Annual General Meeting 3/24/2021 4/9/2021 TLH VN HOSE Cash dividend (VND500/share) 3/24/2021 SJS VN HOSE Annual General Meeting 3/24/2021 PGC VN HOSE Annual General Meeting 3/24/2021 HDG VN HOSE Annual General Meeting 3/24/2021 4/23/2021 SMC VN HOSE Annual General Meeting 3/24/2021 4/23/2021 HDB VN HOSE Annual General Meeting 3/24/2021 4/23/2021 BMI VN HOSE Annual General Meeting 3/24/2021 4/24/2021 NKG VN HOSE Annual General Meeting 3/24/2021 4/27/2021 D2D VN HOSE Annual General Meeting 3/24/2021 4/28/2021 NT2 VN HOSE Annual General Meeting Thursday, March 25, 2021 3/25/2021 NCT VN HOSE Annual General Meeting 3/25/2021 DCM VN HOSE Annual General Meeting 3/25/2021 CTR VN UPCOM Annual General Meeting 3/25/2021 AAA VN HOSE Annual General Meeting 3/25/2021 4/20/2021 DPM VN HOSE Annual General Meeting 3/25/2021 4/23/2021 TPB VN HOSE Annual General Meeting 3/25/2021 4/23/2021 TAC VN HOSE Annual General Meeting 3/25/2021 4/23/2021 PME VN HOSE Annual General Meeting 3/25/2021 4/25/2021 DBC VN HOSE Annual General Meeting 3/25/2021 4/26/2021 SCR VN HOSE Annual General Meeting 3/25/2021 4/26/2021 SAM VN HOSE Annual General Meeting 3/25/2021 4/26/2021 KDC VN HOSE Annual General Meeting 3/25/2021 4/27/2021 POW VN HOSE Annual General Meeting 3/25/2021 4/27/2021 PET VN HOSE Annual General Meeting 3/25/2021 4/27/2021 MBB VN HOSE Annual General Meeting 3/25/2021 4/28/2021 TID VN UPCOM Annual General Meeting 3/25/2021 4/28/2021 PVS VN HNX Annual General Meeting Friday, March 26, 2021 3/26/2021 TCB VN HOSE Annual General Meeting 3/26/2021 SGB VN UPCOM Annual General Meeting 3/26/2021 NHH VN HOSE Annual General Meeting 3/26/2021 EVG VN HOSE Annual General Meeting 3/26/2021 4/23/2021 ABS VN HOSE Annual General Meeting 3/26/2021 4/26/2021 BAB VN HNX Annual General Meeting 3/26/2021 4/27/2021 VNG VN HOSE Annual General Meeting 3/26/2021 4/27/2021 VCG VN HOSE Annual General Meeting 3/26/2021 4/27/2021 TTF VN HOSE Annual General Meeting 3/26/2021 4/27/2021 IJC VN HOSE Annual General Meeting 3/26/2021 4/27/2021 DP3 VN HNX Annual General Meeting 3/26/2021 6/28/2021 DP3 VN HNX Cash dividend (VND8,000/share) 3/26/2021 4/28/2021 SNZ VN UPCOM Annual General Meeting 3/26/2021 4/28/2021 SAB VN HOSE Annual General Meeting 3/26/2021 4/29/2021 TCD VN HOSE Annual General Meeting Source: Mirae Asset Research, FiinPro Mirae Asset Vietnam Research 3 March 24, 2021 Good Morning Vietnam Technical analysis Summary Item Data Item Views Close (23 March., 2021) 1,183.45 (-0.92%) Short-term Sideways Resistance 1,200 Medium-term Sideways Support 1,100 Long-term Upsides VN-INDEX TECHNICAL CHART Source: Fdata, Mirae Asset Research Mirae Asset Vietnam Research 4 March 24, 2021 Good Morning Vietnam Equity market indicators Figure 1.