Rong Viet Securities - Investment Strategy April 2018

Since beginning of 2018, the VNIndex has been continuously moving higher while other global equity
markets faced corrections by the end of February and in March. Strong economic data, strong capital
inflows, good growth prospect are main factors contributing to the stock market performance in
Q1/2018.
Investors can expect another positive month for the market. There are three reasons we believe in this
scenario. They are: (1) stable economy, (2) earnings seasons and AGMs and (3) covered warrants on
equity debut. The VNIndex will accumulate more around 1,170 to 1,200 pts before making a break out
to head for next resistance 1,250 – 1,265 pts.
Besides, we have to warn investors of a less positive scenario. The VNIndex could correct from 5% to 7%.
There are some headwinds such as (1) trade war between US and China, (2) reaction to FED lifting up the
rate and (3) margin lending adjustment from brokerage firms.
We bet for the first scenario. So we recommend to strategies for investors in this report. Investors can
choose to follow the inflows of “big players” or try to invest in stocks that have bright prospects in 2018
etc. However, wealsorecommend investorstostayfocuson riskmanagement, especiallyusingleverage.
Last but not least, investors do not to risk “catching bottoms” of stocks that are in negative trend due to
some specific reasons as there are a lot of chances to make profit out there on the market.
Heatmap of the VNIndex since inception
Source: Bloomberg
Strategy Board
Bernard Lapointe – Head of Research
bernard.lapointe@vdsc.com.vn
Lam Nguyen
lam.ntp@vdsc.com.vn
Thien Bui
thien.bv@vdsc.com.vn
Hieu Nguyen
hieu.nd@vdsc.com.vn
Quang Vo
quang.vv@vdsc.com.vn
SonTran
son.tt@vdsc.com.vn
Tu Vu
tu.va@vdsc.com.vn
Thuy Nguyen
thuy.nb@vdsc.com.vn
Ha Tran
ha.ttn@vdsc.com.vn
Please see penultimate page for
additional important disclosure
Viet Dragon Securities Corp. (“VDSC”) is a
foreign broker-dealer unregistered in the
USA. VDSC research is prepared by
research analysts who are not registered
in the USA. VDSC research is distributed
in the USA pursuant to Rule 15a-6 of the
Securities Exchange Act of 1934 solely by
Rosenblatt Securities Inc, an SEC
registered and FINRA-member broker-
dealer.
06/04/2018
Investment Strategy April 2018
Chances in the AGM season

Rong Viet Securities Corporation – Investment Strategy Report April 2018 2
CONTENTS
WORLD ECONOMY.................................................................................................................................................................................................................................3
 Global growth momentum gets stronger .......................................................................................................................................................3
 Changes in trade policy is the most commonly cited risk to economic growth ..............................................................................3
GLOBAL STOCK MARKETS...................................................................................................................................................................................................................5
VIETNAM MACRO ...................................................................................................................................................................................................................................6
 Vietnam economy recorded an impressive performance in Q1 2018..................................................................................................6
 Vietnam is the center of South Korea’s “new south wind” policy...........................................................................................................6
 Vietnam’s changes in its foreign policy is a response to rising trade protectionism......................................................................8
VIETNAM STOCK MARKET IN Q1: BREAKING THE ALL-TIME HIGH.......................................................................................................................................9
APRIL STOCK MARKET OUTLOOK...................................................................................................................................................................................................14
INVESTMENT STRATEGY AND IDEAS: CHANCES IN THE AGM SEASON...........................................................................................................................16
Macroeconomic data showed that the global economy in general and Vietnam in particular are in a positive growing trend. For Vietnam,
GDP growth in Q1 2018 was approximately 7.4%, the highest quarterly GDP growth ever seen, thanks largely to Formosa and Samsung.
However, excluding the contribution of these two,, economic growth in Q1 2018 was still estimated to be around 6.0-6.3%. Besides the
recoveries of agriculture and mining, the service sector and most of the other industries in the processing and manufacturing sectors all saw
growth rates of over 6%.
Meanwhile, valuation of the VNIndex in general and many large-cap stocks in particular are at the highest level since 2007. Along with the
negativemovements from globalstocktmarkets, itwillbehard forVietnam’sstocks to avoid ahigherdegreeofvolatilityinApril. Therefore,
we believe that investors should focus on capital management, especially by using margin at conservative levels to limit risk. In this regard,
investors need to pay attention to the deadline for securities companies to raise their initial margins on margin loans to 60% in June. In fact,
in the last quarter, there was also a sudden decline in the market which was in some way related to the use of margin. In addition, we would
like to point out that the ongoing AGM season is also a period where audited financial statements for 2017 will be published. Negative
adjustments in profitability are very likely to arise, especially in companies with a bad history of corporate governance. We recommend
investors not to risk "bottom fishing" on this group.
Finally, we believe that investors can take profits in stocks that have brought high profitability in the past and keep a certain percentage of
cash in hand to buy certain stocks in case of a strong correction. Considering the positive macro-economic outlook and the strong inflows
in the stock market, we recommend that investors select stocks with positive newsflow around their AGM and take advantage of Q1’s
business plans as well as dividend plans for 2018.
STOCKS HIGHLIGHT.............................................................................................................................................................................................................................20
Analysis of 47 stocks of RongViet Research, discussion with companies and specific evaluation in the “Company Report” or “Analyst
Pinboard”

WORLD ECONOMY
• Global growth momentum gets stronger
• Changes in trade policies are the most commonly cited risk to economic growth
• Volatility has been rising after been flat for most of 2017
Global growth momentum gets stronger
The global economy is expected to be fine in the next 2 years. According to the IMF, global growth
forecasts for 2018 and 2019 have been revised upward by 0.2% reflecting increased global growth
momentum and the expected impact of the recently approved US corporate tax cuts. Of which,
some 120 economies, accounting for three quarters of world GDP, have seen a pickup in growth
in y/y terms in 2017, the broadest synchronized global growth upsurge since 2010.
Europe is doing better although Brexit could cause a slowdown in 2020. Meanwhile, China is
stable, even if pundits are trying to pick up a fight with numbers. Emerging markets will grow at
around 6.5% over 2018–19, broadly the same pace as in 2017.
Table 01: GDP Forecasts
2017 2018 (F) 2019 (F)
World 3.7 3.9 3.9
US 2.3 2.7 2.5
Euro Area 2.4 2.2 2.0
China 6.8 6.6 6.4
Japan 1.8 1.2 0.9
India 6.7 7.4 7.8
Emerging Markets 6.5 6.5 6.6
ASEAN 5.3 5.3 5.3
Source: IMF
Note: ASEAN includes Indonesia, Malaysia, Thailand, Philippines and Vietnam
Changes in trade policy is the most commonly cited risk to economic growth
There are some critical risks that are likely to adversely affect the estimation of GDP growth
forecasts of international institutions. According to McKinsey’s newest survey on economic
conditions, changes in trade policy is the most commonly cited risk to economic growth for the
next 12 months. 56% of respondents said that this was their biggest worry, up from 25% three
months ago. Meanwhile, concerns about rising interest rates have surfaced as a main potential
issue for global growth. Last month the FED decided to hike interest rates by 0.25% and the
market is betting that three possible increases are possible in 2018. Notably, others central banks
are considering reducing the size of their balance sheet0 i.e. tightening monetary conditions.
Figure01:Potentialriskstoeconomicgrowth,next12months,%ofrespondents
Source: McKinsey, RongViet Securities
0 10 20 30 40 50 60 70
Changes in trade policy
Geopolitical instability
Rising interest rates
Transitions of political leadership
Asset bubbles
Mar 2018
Dec 2017

Focusing on the so-called “trade war” between the U.S. and China.
• On the one hand, Donald Trump signed a memorandum for new tariffs on 1,300 items
imported from China on March 22nd, worth USD 50 billion to USD 60 billion, which is
expected to target high-technology products. At the same time, the US petitioned China
to the WTO for intellectual property theft as part of a series of commercial protection
measures.
• On the other hand, China unveiled tariffs on USD 3 billion of US imports, with potential
targets such as soybeans, aircraft or heavy equipment.
Meanwhile, the US administration is consistent with its rigid trade principles in discussions with
other allies.
Regarding the NAFTA renegotiation, the US is scheduled to resume discussions with Canada and
Mexico in April on an overhaul of NAFTA, adding another potential trade conflict. Last week, the
US withdrew its demand that at least 50% of NAFTA’s auto content should come from the United
States. Now, the US intends to set out a wage floor at USD 15 per hour. Such wage requirements
for the auto industry could benefit the United Sates and Canada, whose trade unions say that
lower Mexican pay has caused a shift in manufacturing capacity to Mexico.
In the context of KORUS FTA renegotiation, the US created a quota of only 2.68 million ton of steel
imported from South Korea, equivalent to 70% of the annual average steel imported from the
country in 2015-2017. Meanwhile, US automakers can export 50,000 vehicles per company per
year to South Korea, up from 25,000 vehicles.
Japan will eventually have to enter FTA talks and face US pressure to open up its auto and farming
markets. The Japanese policymarkers worried that Trump could use a similar approach to the one
he took with South Korea. Last October, for the first time, Japan has officially received a proposal
from the US about a FTA negotiation.
Figure02:S&P500’sHistoricalVolatility(%)
Source: Bloomberg, RongViet Securities
0
5
10
15
20
25
30
35
40
03/26/1802/09/1812/27/1711/13/1710/02/17
10 days 100 days

GLOBAL STOCK MARKETS
Overall, markets globally have been rising since March 2009. In particularly, MSCI World rose 44%,
S&P 500 almost doubled, MSCI Asia (excludes Japan) and Emerging Markets both gained 35%,
Topix increased 33% in the period. Exclusively, Euro Stoxx suffered 28% loss in value due to the
impact of Greek and Portugal’s financial crisis.
Table 02: MSCI Indices, 2008- 2018
Index Total Return (%, in USD)
MSCI World 44
S&P 500 100
MSCI Asia ex Japan 35
MSCI Emerging Markets 35
Topix 33
Euro Stoxx -28
Source: Bloomberg, RongViet Securities
Figure 03: MSCI World, Monthly Since 2008 Figure 04: S&P 500 Index, Daily
Source: Bloomberg, RongViet Securities Source: Bloomberg, RongViet Securities
It is also worth to notice that equity markets generally have a 7 or 8 years upward cycle, in which
we are already in the 9th
year, additionally, valuations are getting stretched (as seen below).
Therefore, tensions like Fed’s interest rate hike, China’s bad debt and threat of a trade war could
heavily hit the markets. It can be seen figure 02, the volatility has been rising after been flat for
most of 2017. It shows that investors have become uncertain about the markets and it could be a
bad indicator.
Table 03: Markets’ valuations
Source: Bloomberg, Jefferies
500
700
900
1,100
1,300
1,500
1,700
1,900
2,100
2,300
2/29/2018
2017-08-31
2017-01-31
2016-06-30
2015-11-30
2015-04-30
2014-09-30
2014-02-28
2013-07-31
2012-12-31
2012-05-31
2011-10-31
2011-03-31
2010-08-31
2010-01-29
2009-06-30
2008-11-28
2008-04-30
2,300
2,400
2,500
2,600
2,700
2,800
2,900
3,000
03-04-17
03-05-17
03-06-17
03-07-17
03-08-17
03-09-17
03-10-17
03-11-17
03-12-17
03-01-18
03-02-18
03-03-18
Index P/E 2018 P/E 2014 P/BV 2018 P/BV 2014
MSCI World 19.0x 17.9x 2.3x 2.2x
MSCI EM 15.3 13.1 1.8 1.5
MSCI APXJ 14.7 12.0 1.7 1.4

VIETNAM MACRO
• Vietnam economy recorded an impressive performance in Q1 2018
• Vietnam is the center of South Korea’s “new south wind” policy
• Vietnam’s changes in foreign policy is a response to the trade protectionism
Vietnam economy recorded an impressive performance in Q1 2018
According to the General Statistics Office, Vietnam GDP for the first quarter of 2018 increased by
7.4%, the highest level in 10 years. The breakdown shows a clear contribution of industry and
construction which climbed 10% y/y thanks to Samsung’s production expansions. According to
our data, the 12-month moving average IIP of computer, electronic and optical products increased
continuously from May 2017. Besides, it is also remarkable to pay attention to Formosa which
contributed to significant increases of crude steel (+80.8% y/y) and steel bars, corners (+26.5% y/y)
after the first blast-furnace integrated steel mill’s 1-year operation. According to Formosa’s
business plan, the second furnace will start in May 2018, boosting the estimated capacity to 5
million tons per year in 2018.
Figure 05: Vietnam’s GDP growth Figure 06: Industrial Production Index
Source: GSO, RongViet Securities Source: GSO, RongViet Securities
Vietnam is the center of South Korea’s “new south wind” policy
We believe that computer, electronic and optical products are still the key drivers of Vietnam’s
economy for 2018 thanks to the business investments of “Chaebols” such as Samsung, LG, etc.
There is a more and rising positive correlation between Vietnam’s GDP growth and the revenues
of four Samsung factories in Vietnam, including SEV, SEVT, SEHC and SDV.
Although such dependence makes Vietnam’s economy more sensitive to external factors, 2018 is
expected to be a good year and GDP growth is forecasted to rise 7%. Vietnam is seen as the center
of South Korea’s “new south wind” policy. Accordingly, the bilateral trade turnover is estimated at
USD 100 billion in 2020, equivalent to an annual average increase of over 18% in the next 3 years.
The speed of growth is lower than the annual average rate of nearly 24% in 2009-2017, but strong
enough to pull Vietnam forward.
0%
5%
10%
1Q2007 1Q2009 1Q2011 1Q2013 1Q2016 1Q2018
Taxes and subsidies
Service
Industry and construction
Agriculture, forestry and fishing
5%
15%
25%
35%
45%
01/15 06/15 11/15 04/16 09/16 02/17 07/17 12/17
Whole Industrial Sector
Manufacturing
Basic metals
Computer, electronic and optical products

Figure 07: Correlation between Vietnam’s GDP growth
and Samsung’s revenue growth
Figure 08: Total trade turnover between Viet Nam-South
Korea
Source: GSO, RongViet Securities Source: Customs, RongViet Securities
Note: * Growth of total revenue of 4 factories, SEV, SEVT, SDV, SEHC
Table 04: Manufacturing – Consumption – Sectors in Q1 2018
2018 2017 2016
Manufacturing Consumption Stock Manufacturing Consumption Stock Manufacturing Consumption Stock
Manufacturing + + + - - + - - -
Food products + + + - - - + + -
Beverages - + - + - + + + -
Tobacco + - + + + + + + -
Textiles + + - - - - - + +
Clothes + - + - + - + + +
Leather + + - - + + - - -
Paper + + - - + + - - -
Chemicals - - + + + - - - +
Pharmaceuticals + + - - - - + + -
Rubber and plastic - - + - + - + + +
Other non-metallic
mineral + + + - - + + + -
Basic metals - - + + - + + + -
Prefabricated metal
products + + - + - + - - -
Computer, electronic
and optical products + + + - - - - - +
Electrical equipment - - - + + + - - +
Motor vehicles - + - - + + - - +
Other means of
transport + - + + + - + + -
Bed, wardrobe,
table, chair + + - - - + + + +
Positive/Total 67% 61% 50% 39% 50% 56% 56% 61% 44%
Source: GSO, RongViet Securities
Note: “+” : A higher annual growth
“-“ : A lower annual growth
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
7.0%
7.5%
8.0%
0%
10%
20%
30%
40%
50%
60%
70%
Samsung's revenue growth*
Vietnam's GDP growth
0
20
40
60
80
100
120
2009 2015 2017 2020F
(Bn USD)

Vietnam’s changes in its foreign policy is a response to rising trade protectionism
President Donald Trump has shown a clear vision of pursuing fair trade deals for "America First”.
He signed a decree authorizing the Office of the US Trade Representative (USTR) to review all
agreements and commercial relations with trade partners, especially the countries with countries
that the US has trade deficit with. Vietnam ranked 5th in the list.
There are some views about whether an imagined trade war is good or not for Vietnam’s economy.
We think it is too early to assess the impact of a trade war as well as its economic effect of Vietnam.
However, there is no doubt that a harder trade environment has been noticed by Vietnamese
lawmakers’, which response was swift.
Firstly, the bilateral Vietnam–U.S. talks related to the Framework Agreement on Investment and
Trade of Vietnam–U.S (TIFA) came back on March 2017 after the U.S. officially withdrawn from the
TPP on Jan 2017. TIFA is considered as an extension of the Vietnam - US Bilateral Trade Agreement
(BTA) with the aim of promoting trade and investment between the two countries. However, the
negotiation process has been suspended since 2011 as Vietnamese leaders pursued the
Transpacific Partner Agreement (TPP). After the U.S. officially withdrawn from the TPP on Jan 2017,
Vietnam had no choice to resume TIFA meetings on March 2017.
Secondly, the EU – Vietnam Free Trade Agreement (EVFTA) has been restarted after more than a
year of delay. There is no doubt that the US withdrawal from TPP also forced the Vietnam
government to urge talks of EVFTA as the EU 28 is the second largest export market for Vietnamese
producers, followed by the United States. In particular, machines, computers and electronic
components are the main items imported from the EU, besides textiles. Regarding the EVFTA
ratification, we emphasize EU lawmakers are clear about a path to solve EVFTA’s issues, including:
• EVFTA is split into two separate ones: The Free Trade Agreement and the Investment
Protection (IP) Agreement because Vietnam’s human rights issues.
• In May, the EU will evaluate Vietnam's efforts to improve the legal framework and combat
illegal fishing before removing a yellow card put on Vietnam's seafood exports after it was
imposed for 6 months.
Notably, the parties expected to sign the EVFTA at the end of 2018. Under the circumstance, there
are huge opportunities for Vietnamese companies to export products to the massive market. We
made an assessment of EVFTA effects on Vietnam’s sectors.
Thirdly, in February 2018, Prime Minister Nguyen Xuan Phuc has signed Decision No. 213/QD-TTg
approving the project "Strengthening bilateral trade and investment cooperation between
Vietnam and other strategic partner countries” to promote and diversify the export market of
Vietnam. Recently, we highlight the strategic partnership between Vietnam Australia on March
2018. In general, Vietnam’s lawmakers try to compensate for the consequences caused by the U.S.
withdraw from TPP.
Figure 09: EU – The second largest importer for Vietnam Figure 10: U.S. trade deficit by country
Rank Countries Scale (Bn USD)
1 China -375.2
2 Mexico -71.1
3 Japan -68.8
4 Germany -64.3
5 Vietnam -38.3
6 Ireland -38.1
8 Malaysia -24.6
10 Korea -22.9
11 Thailand -20.4
12 Canada -17.6
Source: Eurostat, RongViet Securities Source: US Census Bureau, RongViet Securities
25%
23%
18%
10%
8%
5%
4% 3% 2% 2% USA
EU 28
China
Japan
South Korea
Hong Kong
UAE
Philippines
Thailand
Malaysia

VIETNAM STOCK MARKET IN Q1: BREAKING THE ALL-TIME HIGH
After skyrocketing in the first two months, the VN-Index slowed down a bit in March. It still
successfully broke the all-time high level, closing at 1,174 pts (+19% YTD). Similarly, with a 3.4%
gain in March, the HNX-Index continued to hit new record highs.
The negative point is that inflows were not widely spread. Although the gap between the number
of gainers and decliners has been narrowing, only large caps seemed to appeal to investors.
Figure 11: VNIndex movement in Q1 Figure 12: HNXIndex movement in Q1
Source: RongViet Securities Source: RongViet Securities
Large caps in the spotlight
In March, mid-caps had the best performance with a 5.7% gain as the VN30 saw a slowdown with
a 3.9% gain. Small caps continued to do poorly with a return of -0.1%, a third consecutive negative
month. Since the beginning of this year, VN30 is still the winner with a 16.2% gain, outpacing the
other two indices (Figure 13). Large caps also drew the largest incremental trading value. The
average trading value of VNIndex in Q1 jumped by almost double from VND 2.8 Tn to VND 6.0 Tn,
and roughly 75% of additional liquidity came from the VN30 basket (Figure 14).
Figure 13: Indices performance comparison in Q1 Figure 14: 2017-2018 matching trading value
Source: FiinPro, RongViet Securities Source: FiinPro, RongViet Securities
Even among large caps, not many stocks enjoyed some heavy inflows. Banks appeared to be the
outperformers, contributing four names in the top 10.
900
950
1,000
1,050
1,100
1,150
1,200
0
100
200
300
400
500
22/12 08/01 22/01 05/02 26/02 12/03 26/03
Trading Volume (mil. shares) VNINdex (right axis)
110
114
118
122
126
130
134
138
0
20
40
60
80
100
120
140
22/12 08/01 22/01 05/02 26/02 12/03 26/03
Trading Volume (mil. shares) HNXIndex (right axis)
90
100
110
120
01/18
02/18
03/18
VNI VN30 VNMID VNSML
0
1
2
3
4
5
6
7
01/17
02/17
03/17
04/17
05/17
06/17
07/17
08/17
09/17
10/17
11/17
12/17
01/18
02/18
03/18
VNDTn
VN-Index VN30 VNMid VNSML

Figure 15: Top winners and losers in VN30 basket
Source: FiinPro, RongViet Securities
On the back of highly selective inflows, we think it is worth reviewing the current market
cap of each industry. Given banking stocks’ outstanding performance, it is not surprising that
this sector’s proportion has improved significantly (from 15.8% at early 2017 to current 22.1%).
Real estate also saw its weighting increase (from 11.5% in Jan-2017 to 15.1% in Mar-2018),
supported mainly by VIC and its subsidiary VRE. With the upcoming IPO of Vinhomes (another
VIC’s subsidiary), we expect that the real estate sector will expand its weighting further.
Considering these sectors’ rising impact, we believe focusing on big stocks, namely VIC, VCB, ACB,
CTG and MBB, should give investors an idea on future indices moves.
Figure 16: Market cap weighting by industry
Source: FiinPro, RongViet Research
Q1 2018 - Sector Review
Financials, real estate and banking are among the top outperforming sectors in Q1 2018. Returns
are huge: these cyclical sectors are in a booming phase.
-40% -20% 0% 20% 40% 60% 80%
CTD
ROS
GMD
BMP
SBT
MWG
CII
REE
NT2
HSG
VCB
SSI
GAS
MBB
CTG
BVH
MSN
VIC
VJC
BID
YTD returns March 2018 returns
0%
20%
40%
60%
80%
100%
01/17
02/17
03/17
04/17
05/17
06/17
07/17
08/17
09/17
10/17
11/17
12/17
01/18
02/18
03/18
Banks Real estate Food & beverage Utilities Industrial goods & services Others

Figure 17: Performance of leading and lagging sectors in Q1 2018
Source: Fiin Pro, RongViet Securities
Banks
Strong credit and earnings growth is foreseeable. Due to Resolution 42, the bad debts problems
could become under control. Expectations of capital raising to meet Basel II criterias as well as the
listing of private banks like HDB, TPB, and TCB have created excitement for this sector.
Real estate
Numerous real estate projects were initiated during the quarter. Many of those are approaching
their handover phases, creating a driving force for revenues and profits of real estate companies.
Financials
Market broke the all-time high with significant improvement in liquidity in Q1 which has attracted
money into brokerage stocks.
Underperforming sectors:
Construction & building materials
Investors are worried that leading construction companies might not grow as fast as they used to
be, not to mention the issues of corporate conflict (CTD) or cash flow management (HBC).
Meanwhile, rising competition in the industry be the reason for the poor performance of building
material stocks.
Pharmaceutical
After a two-year’s rally, the market seems to start questioning the high valuation of the sector.
Valuations might not be justified by the modest earnings growth projections.
Chemicals
Fertilizers companies face strong headwinds such as the price increase of oil as an input and the
oversupply situation in the market. Changes in the VAT policy and state divestment, two main
catalyst for the sector, have not yet kicked in. Hence there is no reason for these stocks to
appreciate.
Honorable mention:
The rally of large cap stocks like GAS (35%-Utilities), BVH (45%-Insurance) and VJC (53%-Travel &
Tourism) has contributed greatly to the increase of the index. On the contrary, uncertainty about
the success of Bach Hoa Xanh’s grocery chain stores have sent the powerhouse MWG (Retail)
down by 15% since the beginning of the year.
-20% -10% 0% 10% 20% 30% 40% 50% 60% 70% 80%
Banks
Real estate
Financials
Chemicals
Pharmaceutical
Construction & Material
Q1 2018 2017

P/E expansion seems inevitable:
Over 70 AGMs have taken place so far, and there are a lot more to come this April. A quick look at
the companies’ target for 2018 shows an expected growth of around 20% in their PBT. This is in
line with our expectations in our strategy report published at the beginning of this year.
Figure 18: Earnings before tax - target 2018 compared to actual 2017
Because the VN-Index has already advanced 19% in just one quarter, we are expecting the P/E to
continue to expand further. The degree of the expansion will depend on how strong capital
inflows are. Foreign capital appears to play a vital role in the movements of the market. The
slowdown of foreign investments at the end of Q1, which caused the index to struggle, is a clear
example.
Foreign investors trading:
Figure 19: Net trading value of Foreign Investors
Since the beginning of the year, March is the first month where foreign investors sold. Last
month’s total net sold on both exchanges was VND 734 Bn, in which HSX and HNX accounted for
VND 640 Bn and VND 64 Bn respectively. It mostly came from the fact that foreign investors net
sold over VND 1,100 Bn in the day of the ETF’s portfolio restructuring (16/03).
Regarding sectors, on the HSX, there were 9 out of 18 sectors being net sold in March. The largest
selling amount went into banks, financial services, construction & building materials. VCB (VND -
565 Bn), CTD (VND -286 Bn), HDB (VND -155 Bn) and HCM (VND -87 Bn) were the largest losers.
12,800 5,508 10,800 10,062 6,800 3,316 3,254
1,355 768
12,229
4,749
8,130
9,288
4,616
2,589 2,809
1,125
719
VNM VJC VPB HPG MBB NVL MWG VCS DHG
PBT 2018P (Bn VND) PBT actual 2017 (Bn VND)
0
2000
4000
6000
8000
10000
12000
14000
16000
-2000
-1000
0
1000
2000
3000
4000
5000
02/01 20/03
Net bought/sold Accumulated Value

On the HNX, foreign investors net sold VND 94 Bn. Notably, VGC was net sold over VND 150 Bn.
We believe it was a result of foreign investors’ profit taking, considered that the market price was
pretty high and 2018’s potential growth is not too positive.
Overall, foreign investors net selling in March was probably just a momentary reaction caused by
worries about the risk of a trade war. However, in the long-term, we believe foreign money will
still be injected into Vietnam because of three main reasons. Firstly, the economy is still positive
in the mid and short term. Secondly, the Vietnam’s stock market has been outperforming the rest
of the world and is expected to stay on that trajectory. Lastly, the trend of IPOs and divestment
will be more intense in the period 2018-2019.
Table 05: Foreign investor’s net trading by sector in both exchanges
HSX HNX
Sector
Net Volume
(shares)
Net Value
(VND Bn)
Net Volume
(shares)
Net Value
(VND Bn)
Oil & Gas 3,065,970 24.9 5,247,436 134.7
Chemicals 2,308,420 -4.0 -473,859 -9.6
Basic resources -4,122,460 -152.1 571,857 2.5
Construction and building
materials -9,163,183 -592.9 -8,698,748 -177.2
Industrial goods & services 1,122,250 50.0 -449,784 -3.7
Automobile & parts -968,450 41.6 7,400 0.1
Food & beverage -3,064,303 -499.1 -595,556 -13.9
Personal & household goods -1,742,660 -45.0 41,888 1.4
Healthcare -1,903,665 -206.8 1,734 0.7
Retail 347,570 11.8 -219,130 -0.7
Communication 1,300 0.1 20,676 0.2
Travel & leisure 2,784,590 34.1 689,012 -11.3
Utilities -3,757,934 109.8 -364,180 -12.5
Bank -18,484,960 -870.7 -811,965 -11.2
Insurance -80,090 42.8 -205,255 -6.3
Real estate 24,524,458 2,103.6 1,083,312 16.2
Financial services -32,940,430 -619.7 -373,877 -3.5
Technology -10,240,680 -68.1 29,360 0.3

APRIL STOCK MARKET OUTLOOK
Currently, there are some tailwinds for the stock market.
Firstly, macro factors are supportive. The Q1/2018 economic data including strong GDP growth,
low inflation, a stable exchange rate and low interest rates imply that the stock market still has
ample room to move higher. However, investors should focus on Q2 as the growth rate in this first
quarter might be due to last year’s low base. The question here is whether the growth rate can be
maintained or are we looking forward to a gradual decrease in GDP for the reminding three
quarters.
Secondly, first quarter earnings reports and AGMs are positive catalysts. Preliminary 2018 annual
plans from a few companies show that listed ones are aiming at 20% growth in their bottom line.
This is what we have expected. In the annual 2017 strategy report, we forecasted earnings’ growth
in 2018 that could be around 20%. This might be a chance for investors to rotate their portfolios.
Thirdly, covered warrants on stocks will be launched in late April – beginning of May. This will be
an effective product to hedge risks. Besides, equity covered warrants can help boost the market
to become more active. Foreigners will also have more choices in case they want to invest in
shares that have reached the foreign ownership limit.
On the other hand, there are still headwinds.
First, a trade war between the US and China may create a domino effect on global trade. Such a
war can affect the investment decision of multi-national corporations. Finally, global financial
stability could suffer.
Secondly, the FED aims to increase interest rates three times in 2018. We bet for four times, that
means the FED will have another three times to do so for the rest of this year. The next meetings
will be May 2nd and June 13th.
Thirdly, the deadline for brokerage firms to lift the initial margin to 60% will come in June. The
first quarter did see some days of sudden drops in the market. We think it was due to brokers
trying to bring down the “hot” margin money. Hence, this scenario may happen again in April.
To sum up, we see 2 scenarios for the VNIndex in April. The best case is that the VNIndex can stay
for a while around 1,170 to 1,200 and can make a break out to reach the next resistance level at
1,250 – 1,265. Large-cap stocks, especially banks, real estate, or even oil & Gas will support the
VNIndex. More stocks can join the rally, due to the earnings season and AGMs. Historical data also
prove that the VNIndex will have more room to increase rather than decrease. Out of the last 18
years, the VNIndex had positive returns for 12 years in April.

Figure 20: Heatmap of the VNIndex since inception
Source: Bloomberg
The second scenario is the less positive one. The index can have corrections. The correction
threshold might be around 5% - 7%. We think this range is quite normal for the market at
this stage.

INVESTMENT STRATEGY AND IDEAS: CHANCES IN THE AGM SEASON
Macroeconomic data showed that the global economy in general and Vietnam in particular are in a
positive growing trend. For Vietnam, GDP growth in Q1 2018 was approximately 7.4%, the highest
quarterly GDP growth ever seen, thanks largely to Formosa and Samsung. However, excluding the
contribution of these two,, economic growth in Q1 2018 was still estimated to be around 6.0-6.3%.
Besides the recoveries of agriculture and mining, the service sector and most of the other industries in
the processing and manufacturing sectors all saw growth rates of over 6%.
Meanwhile, valuation of the VNIndex in general and many large-cap stocks in particular are at the
highest level since 2007. Along with the negative movements from global stockt markets, it will be
hard for Vietnam’s stocks to avoid a higher degree of volatility in April. Therefore, we believe that
investors should focus on capital management, especially by using margin at conservative levels to
limitrisk. In this regard, investorsneed to payattentiontothe deadlineforsecuritiescompaniestoraise
their initial margins on margin loans to 60% in June. In fact, in the last quarter, there was also a sudden
decline in the market which was in some way related to the use of margin. In addition, we would like
to point out that the ongoing AGM season is also a period where audited financial statements for 2017
will be published. Negative adjustments in profitability are very likely to arise, especially in companies
with a bad history of corporate governance. We recommend investors not to risk "bottom fishing" on
this group.
Finally, we believe that investors can take profits in stocks that have brought high profitability in the
past and keep a certain percentage of cash in hand to buy certain stocks in case of a strong correction.
Considering the positive macro-economic outlook and the strong inflows in the stock market, we
recommend that investors select stocks with positive newsflow around their AGM and take advantage
of Q1’s business plans as well as dividend plans for 2018.
Capital inflows
Many important targets of the government for 2018, including divestments of SoEs, promoting
growth in the private business sector, and upgrading Vietnam’s securities market still need to be
implemeted during the reminder of the year. In addition, healthy economic growth also makes
the Vietnam’s market more attractive to foreign indirect investment (FII) flows. Despite the net
selling in March, the accumulated net buying by foreign investors in Q1 2018 reached VND 10,000
Bn (+178%).
Therefore, we believe that “Following the big capital flow” strategy would generate high return in
2018. In this strategy, investors should focus on the leading companies in their industries with
positive outlook such as (1) State capital divestment; (2) IPO or divestment from their subsidiaries;
and (3) Underlying stock of covered warrant. With the above criteria, our short list of potential
stocks includes: (1) State capital divestment companies: GAS, BID, PLX, ACV, and VCB; or (2)
Leading companies in their industries: VIC, FPT, etc.
However, at the current high PER, these stocks have been fluctuating strongly, like the market.
Therefore, we think that investors should closely follow the trend of cash flow.

Figure 21: PER of Indices classified as market cap (x) Figure 22: PBR of Indices classified as market cap (x)
Source: FiinPro, RongViet Securities compiles
Season of AGM and Q1 business results update
According to our statistics, by the end of Q1 2018, there were only about 70 listed companies that held
their 2018’s AGM. Of which, more than 50% of these firms set a target to increase NPAT by more than
15%YoY. Many financialservicescompaniesplantogrowtheirprofitsbyf40-100%in2018, withbanks
and real estate sector being two noticeable sectors.
Banks. The banking sector is forecasted to grow sharply in 2018, coming from: (1) High credit
growth and improved NIM which will to boost interest income; (2) Reduced risk provisions; and
(3) Non-interest income, in which service income and provision reversal will be the two highest
earning contributiors. In addition, plans to pay high dividend, raise capital, and the listing of some
of the top private companies in the second and third quarter will be a stimulus for banking stocks.
Based on these criteria, we believe that investors can accumulate stocks such as ACB, MBB, CTG,
VIB and LPB.
Real estate. 2018 - 2019 is considered the peak handover period for home investors. Therefore,
although only DXG held an AGM and set a profit growth target of 40%, we believe that this trend
is also taking place at other real estate companies. The listing plans in Q2 2018 for real estate
companies and banks, such as Cenland, Hai Phat, TienphongBank, etc. will also be a positive factor
for the sector. Accordingly, investors can choose stocks with the following criterias:
(1) Companies that have accumulated land bank very early and developed projects in joint
venture form and can record profit from land revaluation, typically NLG and DXG.
(2) Big real estate firms that have projects launched this year such as VIC, KDH, NLG, DXG or HDG.
(3) Companies with large land bank in the neighboring provinces of Ho Chi Minh city and Hanoi,
such as DIG.
In these groups, we think that VIC and DIG are the two stocks that investors can accumulate.
Meanwhile, NLG, DXG and HDG’s share prices are quite close to our target prices.
0
5
10
15
20
25
30
0
1
2
3
4
5
6
7
8

Figured 23: Primary stock (no. of units)
Source: Savills, RongViet Securities compiles
Financial services. In the first quarter of 2018, securities companies are forecasted to have
positive growth considering the stock market was very active throughout the period: (1) Fee and
net income from margin lending are forecasted to increase significantly as the trading value (on
HSX, HNX, and Upcom) reached an average of VND 8,982 Bn per session (+100% YoY) and (2)
Income from trading activities. In addition, covered warrant that is expected to be launched in Q2
2018 is also a promising factor to increase the attractiveness of securities stocks. Therefore, we
believe that companies with high brokerage market share, are able to increase their market share,
and have advantages in investment banking.
Power. In the first two month of 2018, electricity consumption grew by 12% YoY, in which coal-
fired, gas-fired, and hydropower output grew by 16%, 5%, and 2%, respectively; accounting for
45%, 23%, and 30% of total electricity output. In addition, in the first quarter of the year, Duyen
Hai 3 expansion plant and the Nam Con Son gas pipeline got some technical issues that affected
production of related power plants, leading to a significant rise in competitive generation market
(CGM) prices. Hence, we expect that thermal power companies will see positive business results
in Q1 2018. Besides, due to their strong cash flow, power companies always pay high cash
dividends. Yields are usually between 8 and 10%. PPC, NT2, and REE are three stocks that we think
investors can accumulate
Aviation. The growth of international visitors to Vietnam in Q1 continued to remain high (28%).
As a result, we continue to keep an optimistic view on passenger volumes at airports. ACV, along
with other airline companies, such as ground service (SGN) and souvenir shops and restaurants
(AST), will continue to benefit from this trend, especially when the new airports in Da Nang and
Cam Ranh are operational.
Figure 24: Growth of international visitors by air
Source: GSO, RongViet Securities compiles
Autos. Consumers’ tendency to wait for lower prices when the import tariff will decline to 0%
dragged down the automobile demand in 2017 by 8% YoY, compared to the average growth of
0
5000
10000
15000
20000
25000
Q1
2016
Q2
2016
Q3
2016
Q4
2016
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Ha Noi
-20%
0%
20%
40%
60%
80%
2012 2013 2014 2015 2016 2017 Q1 2018
Total visitors by air Chinese Korean

20% in previous years (according to VAMA). We expect this trend to stop in 2018 with the import
tariff officially falling to 0%. In addition, requirements for Valley Transportation Authority
certification (VTA, under Decree No. 116) are initially met, especially for Thailand and Indonesian
cars, which account for 60 – 70% of total automobiles imported into Vietnam. Therefore, our
analysts expects that automobile sales could increase in 2018. Regarding specific companies, we
expect that Savico (HSX:SVC), the main distributor of Ford and Toyota, could witness strong sales.
Meanwhile, Haxaco (HSX:HAX), main distributor of Mercedes, experienced none of the above
factors and had a successful year in 2017 with NPAT growth of 32% YoY. We estimate that HAX
would continue to witness growth of 20 – 30% in the coming years thanks to (1) growth in car
demand given the rapid expansion of Vietnam’s middle class; (2) plan to expand Mercedes Benz
distribution network from 14 showroom in 2017 to 24 showroom in 2020; and (3) ability to
increase market share when Lexus, the biggest competitor to Mercedes Benz has been negatively
affected by the Decree No. 116 (Japanese manufacturers do not agree to provide VTA).
In Q1 2018, we also released four company analysis reports, including MKP, VIC, DXG and HAPRO.
Investors who are interested in these stocks can find the full report on our website at Company
reports.

Ticker Exchange
Market
cap
(USD mn)
Total
Return
Rating
2017 2018F 2019F
PER
Trailing
(x)
PER
2018F (x)
PBR Cur.
(x)
Div Yield
(%)
+/- Price
1y (%)
3-month
avg. daily
turnover
(USD
thousand)
Foreign
remaining
room
(%)
Target
price (VND)
Price @ Apr
05 (VND)
+/- Rev.
(%)
+/- NPAT
(%)
+/- Rev.
(%)
+/- NPAT
(%)
+/- Rev.
(%)
+/- NPAT
(%)
ACB HNX 2,374.5 44,000 49,800 N/a Under reviewing 3,923.7 81.0 59.8 6.1 74.8 9.6 25.5 13.8 3.2 0.0 113.5 9,570.7 0.0
ACV UPCOM 9,161.2 124,000 95,400 30.9% Buy 3,207.0 -5.5 -18.1 38.8 58.9 13.4 50.8 33.4 7.6 0.9 100.3 1,057.6 45.5
BFC HOSE 87.5 40,500 34,800 27.9% Buy 6,173.0 6.1 0.2 8.2 10.6 14.7 7.2 6.5 2.0 11.5 8.6 287.4 35.1
CHP HOSE 136.6 31,900 24,650 35.1% Buy 2,518.2 32.5 59.2 -26.1 -38.4 12.1 7.6 12.9 1.7 5.7 18.3 72.9 45.6
CTG HOSE 5,827.8 31,900 35,600 -8.4% Reduce 2,719.3 23.3 9.2 10.5 33.7 13.2 17.8 17.1 2.1 2.0 107.5 11,669.7 0.0
CTI HOSE 96.5 31,500 34,850 -3.0% Neutral 1,344.0 7.1 39.2 130.0 208.3 -44.0 13.0 12.1 1.9 6.6 23.3 969.7 21.1
DHG HOSE 659.3 102,000 114,700 -8.5% Reduce 5,767.0 7.4 -9.5 15.2 31.8 9.3 23.3 20.2 5.5 2.6 31.9 1,499.5 3.2
DIG HOSE 267.0 32,000 25,500 25.5% Buy 3,440.5 68.4 31.7 88.5 299.2 99.6 31.0 17.6 2.2 0.0 204.7 4,221.7 7.9
DPM HOSE 366.5 22,400 21,300 14.6% Accumulate 2,194.0 0.9 -39.1 35.1 -13.1 7.4 12.0 16.2 1.1 9.4 -2.7 1,206.3 26.2
DQC HOSE 50.0 48,400 36,400 41.2% Buy 4,130.0 2.1 -45.7 12.7 21.1 14.0 10.4 10.4 1.1 8.2 -26.9 96.7 30.6
DRC HOSE 158.8 29,500 30,400 3.0% Neutral 2,367.0 9.2 -59.1 3.1 87.7 4.5 21.8 12.9 2.4 5.9 7.5 734.6 20.0
FPT HOSE 1,470.4 63,600 63,000 4.1% Neutral 4,487.5 8.0 47.0 -47.7 -28.7 13.5 11.4 16.2 2.9 3.2 57.3 7,169.2 0.0
GAS HOSE 10,930.8 137,900 129,900 9.2% Accumulate 6,779.0 9.3 36.4 14.9 14.9 14.2 25.7 22.9 6.0 3.1 153.5 4,247.2 45.5
HAX HOSE 34.6 30,000 22,500 33.3% Buy 3,922.0 33.1 8.1 34.8 6.2 29.2 9.3 8.8 1.4 0.0 7.9 261.9 37.8
HDG HOSE 178.6 39,700 53,500 -24.9% Sell 5,825.3 14.1 -16.0 49.6 103.8 -0.2 22.8 11.2 3.2 0.9 85.8 329.9 31.3
HPG HOSE 3,921.4 71,900 58,800 22.3% Buy 8,402.3 38.7 21.3 25.5 20.0 33.8 10.1 10.0 2.8 0.0 95.1 16,713.5 9.4
IDC UPCOM 56.0 33,500 23,000 47.8% Buy 1,162.6 N/a N/a N/a N/a 5.7 2.9 24.0 0.4 2.2 0.0 111.8 -25.8
IMP HOSE 118.6 77,000 62,800 24.7% Buy 3,507.0 15.4 16.0 20.4 21.6 21.2 22.1 21.5 1.9 2.1 8.4 59.9 0.0
LTG UPCOM 119.6 57,100 41,000 50.2% Buy 6,042.0 11.6 23.9 7.1 1.4 8.3 6.1 7.4 1.2 11.0 0.0 110.8 4.7
MBB HOSE 2,929.4 36,300 36,700 0.5% Neutral 1,609.6 40.7 39.7 N/a N/a 16.8 18.8 27.1 2.4 1.6 153.4 10,287.7 0.0
NKG HOSE 170.0 49,400 29,750 69.4% Buy 10,779.2 41.2 36.6 81.9 84.3 7.5 4.5 3.1 1.3 3.4 13.0 1,352.4 56.8
NLG HOSE 331.8 37,200 40,000 -5.8% Reduce 5,709.4 24.8 55.0 8.9 47.3 54.7 12.0 9.5 2.2 1.3 78.4 695.7 0.0
NT2 HOSE 417.0 37,600 32,950 29.3% Buy 3,412.9 -15.3 -25.3 13.7 21.8 13.9 11.7 10.1 1.9 15.2 5.8 711.9 26.9
NTC UPCOM 53.5 127,000 76,000 70.4% Buy 8,277.6 -0.8 8.6 5.4 -10.2 15.5 8.5 10.8 3.2 3.3 64.4 140.6 48.9
PC1 HOSE 162.4 37,000 32,000 18.8% Accumulate 4,030.2 5.1 -22.1 55.2 130.3 3.3 13.7 8.5 1.4 3.1 6.4 296.8 11.0
PGI HOSE 72.7 24,900 18,650 46.4% Buy 2,448.0 0.0 24.9 10.7 7.7 11.2 11.5 9.6 1.1 12.9 -15.5 27.0 28.1
PHR HOSE 159.8 52,600 46,300 20.1% Buy 8,684.4 40.4 48.5 2.3 92.4 13.3 11.2 7.2 1.6 6.5 88.3 720.2 38.8
PME HOSE 239.7 120,000 83,600 45.9% Buy 6,054.0 7.6 19.7 25.1 20.3 17.0 19.0 16.0 3.4 2.4 0.0 181.7 0.0
PNJ HOSE 952.9 155,000 200,500 -21.8% Sell 10,874.0 28.2 61.1 31.7 28.6 13.4 28.5 23.2 7.3 0.9 178.5 3,316.0 0.0
PPC HOSE 270.6 22,000 19,200 26.6% Buy 1,916.9 4.3 52.4 4.1 -5.9 1.2 7.2 8.4 1.1 12.0 24.4 173.3 32.2
PVD HOSE 311.4 24,200 18,500 30.8% Buy 0.0 -27.2 -79.8 16.3 -111.5 41.7 156.7 N/a 0.5 0.0 -8.1 3,116.9 24.5
PVT HOSE 267.3 18,100 21,600 -6.9% Reduce 1,438.0 -9.0 0.7 9.4 -1.1 4.6 13.5 15.6 1.6 9.3 76.4 785.4 15.2
QNS UPCOM 607.9 74,200 57,000 36.3% Buy 7,365.0 9.6 -27.9 8.8 30.3 6.0 13.5 9.0 3.1 6.1 -37.8 691.7 39.9
REE HOSE 533.7 48,400 39,150 28.7% Buy 5,486.6 36.5 26.0 13.3 22.2 4.6 8.8 N/a 1.5 5.1 51.1 2,547.3 0.0
(*) Total Return = Stocks’ Upside plus dividend yield
STOCKS HIGHLIGHT

Ticker Exchange
Market
cap
(USD mn)
Total
Return
Rating
2017 2018F 2019F
PER
Trailing
(x)
PER
2018F (x)
PBR Cur.
(x)
Div Yield
(%)
+/- Price
1y (%)
3-month
avg. daily
turnover
(USD
thousand)
Foreign
remaining
room
(%)
Target
price (VND)
Price @ Apr
05 (VND)
+/- Rev.
(%)
+/- NPAT
(%)
+/- Rev.
(%)
+/- NPAT
(%)
+/- Rev.
(%)
+/- NPAT
(%)
SHP HOSE 94.6 25,400 22,950 17.6% Accumulate 2,128.6 20.3 88.9 -1.9 -7.1 3.0 11.6 12.5 1.8 7.0 24.1 9.7 44.6
STK HOSE 41.5 21,500 15,750 39.7% Buy 2,419.0 46.6 242.3 2.0 27.7 7.9 9.5 7.6 1.2 3.2 0.8 20.5 38.4
TCM HOSE 55.3 30,500 24,400 29.1% Buy 3,276.0 4.5 67.8 -0.9 -9.1 8.8 6.6 7.7 1.2 4.1 12.1 864.8 0.0
VCB HOSE 11,626.1 60,000 73,500 -17.3% Reduce 2,568.7 18.2 33.0 8.7 17.4 12.0 29.1 31.2 5.0 1.1 104.1 7,896.2 9.4
VGC HNX 506.6 30,200 25,700 21.4% Buy 2,682.4 11.4 23.7 14.4 41.8 15.6 16.2 12.2 1.8 3.9 64.2 1,492.1 14.5
VIC HOSE 15,191.9 115,000 131,000 -12.2% Reduce 4,097.1 68.4 74.1 39.2 74.7 27.1 81.4 46.6 11.1 0.0 203.6 11,895.3 38.3
VJC HOSE 4,325.9 191,000 218,000 -11.0% Reduce 11,926.0 54.0 81.0 17.7 26.6 25.8 21.6 17.2 9.8 1.4 148.9 12,626.9 3.7
VNM HOSE 12,588.9 215,323 197,300 10.7% Accumulate 8,683.0 9.1 10.1 17.0 18.4 15.0 27.8 26.1 12.3 1.5 43.7 10,970.9 40.6
VRE HOSE 4,112.2 51,200 49,200 4.1% Neutral 1,712.4 -13.6 -17.2 73.5 44.0 -7.3 60.1 32.2 3.6 0.0 0.0 14,093.2 16.2
VSC HOSE 85.9 48,900 39,000 29.2% Buy 5,611.0 20.4 -5.6 0.9 26.4 2.5 8.2 7.2 1.3 3.8 -24.1 524.3 9.7
VSH HOSE 158.2 22,100 17,450 32.4% Buy 1,505.3 17.5 10.8 3.2 -3.1 112.7 12.7 13.1 1.2 5.7 18.1 46.5 34.7
(*) Total Return = Stocks’ Upside plus dividend yield

MACRO WATCH IN MARCH
Inflation Is Not An Issue Now Retail Sales Saw A Better Increase
PMI Kept Above The Expansion Level Trade Growth Is Slightly Low
FDI Record No USD Billion Worth Projects In Q1 2018 Winning Volume Plummeted
Source: FII, RongViet Securities Source: VBMA, RongViet Securities
0%
1%
2%
3%
4%
5%
6%
Thg1…
Thg1…
Thg1…
Thg1…
Thg2…
Thg3…
Thg4…
Thg5…
Thg6…
Thg7…
Thg8…
Thg9…
Thg1…
Thg1…
Thg1…
Thg1…
Thg2…
Thg3…
Headline inflation Core inflation
260,000
310,000
360,000
410,000
0%
4%
8%
12%
08/2016
0/2016
2/2016
02/2017
04/2017
06/2017
08/2017
0/2017
2/2017
02/2018
Retail Sales (VND B) Growth (%)
-4.0
-2.0
.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
03/2013
07/2013
11/2013
03/2014
07/2014
11/2014
03/2015
07/2015
11/2015
03/2016
07/2016
11/2016
03/2017
07/2017
11/2017
03/2018
46.0
47.0
48.0
49.0
50.0
51.0
52.0
53.0
54.0
55.0
56.0
IP (3m Moving Average) PMI
0%
5%
10%
15%
20%
25%
30%
35%
10/2016
11/2016
12/2016
01/2017
02/2017
03/2017
04/2017
05/2017
06/2017
07/2017
08/2017
09/2017
10/2017
11/2017
12/2017
01/2018
02/2018
03/2018
Export Import
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10/2016
11/2016
12/2016
01/2017
02/2017
03/2017
04/2017
05/2017
06/2017
07/2017
08/2017
09/2017
10/2017
11/2017
12/2017
01/2018
02/2018
03/2018
Implemented capital Registered capital
0
20
40
60
80
100
120
0
10
20
30
40
50
60
70
01/15
04/15
07/15
10/15
01/16
04/16
07/16
10/16
01/17
04/17
07/17
10/17
01/18
VST
VBSP
VDB
Winning-to-Offering ratio (RHS)
(Trillion VND) (%)

INDUSTRY INDEX
Level 1 industry movement Level 2 industry movement
Industry PE comparison Industry PB comparison
2% 0%
-8%
5%
-1%
6%
2%
-6%
11%
12%
-10%
-5%
0%
5%
10%
15%
Technology
Industrials
Oil&Gas
ConsumerServices
HealthCare
ConsumerGoods
Banks
BasicMaterials
Financials
Utilities
-8%
9%
12%
2%
-8%
7%
12%
10%
2%
10%
-2%
2%
4%
-7%
6%
-2%
-1%
-1%
-10% 0% 10% 20%
Retail
Insurance
Real Estate
Technology
Oil & Gas
Financial Services
Utilities
Travel & Leisure
Industrial Goods & Services
Personal & Household Goods
Chemicals
Banks
Automobiles & Parts
Basic Resources
Food & Beverage
Media
Construction & Materials
Health Care
11.4
15.1
23.8
14.5
19.2
22.9
21.7
10.1
22.1
22.9
21.2
14.7
Technology
Industrials
Oil&Gas
ConsumerServices
HealthCare
ConsumerGoods
Banks
BasicMaterials
Financials
Utilities
HSX
HNX
2.6
3.8
4.7 4.8
4.0
6.9
3.4
2.1
5.4 5.6
5.1
2.4
Technology
Industrials
Oil&Gas
ConsumerServices
HealthCare
ConsumerGoods
Banks
BasicMaterials
Financials
Utilities
HSX
HNX

ANALYSIS & INVESTMENT ADVISORY DEPARTMENT
Bernard Lapointe
Head of Research
bernard.lapointe@vdsc.com.vn
+ 84 28 62992006 (1525)
Lam Nguyen
Senior Strategist
lam.ntp@vdsc.com.vn
+ 84 28 6299 2006 (1313)
• Banking
• Conglomerates
Thien Bui
Senior Analyst
thien.bv@vdsc.com.vn
+ 84 28 6299 2006 (1321)
• Market Strategy
• Financial Services
• Personal Goods
Hieu Nguyen
Senior Analyst
hieu.nd@vdsc.com.vn
+ 84 28 6299 2006 (1514)
• Market Strategy
• Pharmaceuticals
• Aviation
Duong Lai
Senior Analyst
duong.ld@vdsc.com.vn
+ 84 28 6299 2006 (1522)
• Real Estate
• Building Materials
Vu Tran
Senior Analyst
vu.thx@vdsc.com.vn
+ 84 28 6299 2006 (1518)
• Oil & Gas
• Food & Beverage
Trinh Nguyen
Analyst
trinh.nh@vdsc.com.vn
+ 84 28 6299 2006 (1331)
• Steel
• Construction
• Technology
Quang Vo
Analyst
quang.vv@vdsc.com.vn
+ 84 28 6299 2006 (1517)
• Market Strategy
• Basic Materials
• Personal Goods
Son Phan
Analyst
son.pnt@vdsc.com.vn
+ 84 28 6299 2006 (1519)
• Utilities
• Natural Rubber
Tu Vu
Analyst
tu.va@vdsc.com.vn
+ 84 28 6299 2006 (1511)
• Macroeconomics
Son Tran
Analyst
son.tt@vdsc.com.vn
+ 84 28 6299 2006 (1527)
• Market Strategy
• Retails
• Consumer chemicals
Thuy Nguyen
Analyst
thuy.nb@vdsc.com.vn
+ 84 28 6299 2006 (1528)
• Macroeconomics
Tung Do
Analyst
tung.dt@vdsc.com.vn
+ 84 28 6299 2006 (1521)
• Logistics
• Aviation
Thu Pham
Analyst
thu.pa@vdsc.com.vn
+ 84 28 6299 2006 (1520)
• Industrial Real Estate
Thao Dang
Analyst
thao.dtp@vdsc.com.vn
+ 84 28 6299 2006 (1529)
• Food & Beverage
Tam Pham
Analyst
tam.ptt@vdsc.com.vn
+ 84 28 6299 2006 (1530)
• Fishery
Ha Tran
Assistant
ha.ttn@vdsc.com.vn
+ 84 28 6299 2006 (1526)

RONG VIET SECURITIES
CORPORATION
Floor 1-2-3-4, Viet Dragon Tower,
141 Nguyen Du St. - Dist 1 – HCMC
Tel: (84 28) 6299 2006
Fax: (84 28) 6291 7986
Email: info@vdsc.com.vn
Website: www.vdsc.com.vn
Hanoi Branch
2C Thai Phien St., Hai Ba Trung Dist,
Hanoi
Tel: (84 24) 6288 2006
Fax: (84 24) 6288 2008
Can Tho Branch
95-97-99 Vo Van Tan – Ninh
Kieu - Can Tho
Tel: (84 292) 381 7578
Fax: (84 292) 381 8387
Nha Trang Branch
50Bis Yersin St, Nha Trang
Tel: (84 258) 382 0006
Fax: (84 258) 382 0008
DISCLAIMERS
This report is prepared in order to provide information and analysis to clients of Rong Viet Securities only. It is and should not be construed as an offer to sell
or a solicitation of an offer to purchase any securities. No consideration has been given to the investment objectives, financial situation or particular needs
of any specific. The readers should be aware that Rong Viet Securities may have a conflict of interest that can compromise the objectivity this research. This
research is to be viewed by investors only as a source of reference when making investments. Investors are to take full responsibility of their own decisions.
VDSC shall not be liable for any loss, damages, cost or expense incurring or arising from the use or reliance, either full or partial, of the information in this
publication.
The opinions expressed in this research report reflect only the analyst's personal views of the subject securities or matters; and no part of the research
analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or opinions expressed in the report.
The information herein is compiled by or arrived at Rong Viet Securities from sources believed to be reliable. We, however, do not guarantee its accuracy or
completeness. Opinions, estimations and projections expressed in this report are deemed valid up to the date of publication of this report and can be subject
to change without notice.
This research report is copyrighted by Rong Viet Securities. All rights reserved. Therefore, copy, reproduction, republish or redistribution by any person or
party for any purpose is strictly prohibited without the written permission of VDSC.
IMPORTANT DISCLOSURES FOR U.S. PERSONS
This research report was prepared by Viet Dragon Securities Corp. (“VDSC”), a company authorized to engage in securities activities in Vietnam. VDSC is not
a registered broker-dealer in the United States and, therefore, is not subject to U.S. rules regarding the preparation of research reports and the independence
of research analysts. This research report is provided for distribution to “major U.S. institutional investors” in reliance on the exemption from registration
provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).
Any U.S. recipient of this research report wishing to effect any transaction to buy or sell securities or related financial instruments based on the information
provided in this research report should do so only through Rosenblatt Securities Inc., 40 Wall Street 59th Floor, New York, NY 10005, a registered broker
dealer in the United States. Under no circumstances should any recipient of this research report effect any transaction to buy or sell securities or related
financial instruments through VDSC. Rosenblatt Securities Inc. accepts responsibility for the contents of this research report, subject to the terms set out
below, to the extent that it is delivered to a U.S. person other than a major U.S. institutional investor.
The analyst whose name appears in this research report is not registered or qualified as a research analyst with the Financial Industry Regulatory Authority
(“FINRA”) and may not be an associated person of Rosenblatt Securities Inc. and, therefore, may not be subject to applicable restrictions under FINRA Rules
on communications with a subject company, public appearances and trading securities held by a research analyst account.
Ownership and Material Conflicts of Interest
Rosenblatt Securities Inc. or its affiliates does not ‘beneficially own,’ as determined in accordance with Section 13(d) of the Exchange Act, 1% or more of any
of the equity securities mentioned in the report. Rosenblatt Securities Inc, its affiliates and/or their respective officers, directors or employees may have
interests, or long or short positions, and may at any time make purchases or sales as a principal or agent of the securities referred to herein. Rosenblatt
Securities Inc. is not aware of any material conflict of interest as of the date of this publication.

Compensation and Investment Banking Activities
Rosenblatt Securities Inc. or any affiliate has not managed or co-managed a public offering of securities for the subject company in the past 12 months, nor
received compensation for investment banking services from the subject company in the past 12 months, neither does it or any affiliate expect to receive,
or intends to seek compensation for investment banking services from the subject company in the next 3 months.
Additional Disclosures
This research report is for distribution only under such circumstances as may be permitted by applicable law. This research report has no regard to the
specific investment objectives, financial situation or particular needs of any specific recipient, even if sent only to a single recipient. This research report is
not guaranteed to be a complete statement or summary of any securities, markets, reports or developments referred to in this research report. Neither
VDSC nor any of its directors, officers, employees or agents shall have any liability, however arising, for any error, inaccuracy or incompleteness of fact or
opinion in this research report or lack of care in this research report’s preparation or publication, or any losses or damages which may arise from the use of
this research report.
VDSC may rely on information barriers, such as “Chinese Walls” to control the flow of information within the areas, units, divisions, groups, or affiliates of
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Investing in any non-U.S. securities or related financial instruments (including ADRs) discussed in this research report may present certain risks. The securities
of non-U.S. issuers may not be registered with, or be subject to the regulations of, the U.S. Securities and Exchange Commission. Information on such non-
U.S. securities or related financial instruments may be limited. Foreign companies may not be subject to audit and reporting standards and regulatory
requirements comparable to those in effect within the United States.
The value of any investment or income from any securities or related financial instruments discussed in this research report denominated in a currency other
than U.S. dollars is subject to exchange rate fluctuations that may have a positive or adverse effect on the value of or income from such securities or related
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Past performance is not necessarily a guide to future performance and no representation or warranty, express or implied, is made by VDSC with respect to
future performance. Income from investments may fluctuate. The price or value of the investments to which this research report relates, either directly or
indirectly, may fall or rise against the interest of investors. Any recommendation or opinion contained in this research report may become outdated as a
consequence of changes in the environment in which the issuer of the securities under analysis operates, in addition to changes in the estimates and
forecasts, assumptions and valuation methodology used herein.
No part of the content of this research report may be copied, forwarded or duplicated in any form or by any means without the prior.

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