Vietnam Stock market update Q3.2015

VIETNAM 2015 MID YEAR UPDATEVIETNAM 2015 MID YEAR UPDATE
IF NOT NOW THEN WHEN ?
Mr. Tran Thang Long
HEAD OF RESEARCH
BIDV Securities Company
Email: Longtt@bsc.com.vn
Phone: +84 4 39352722 (118)
Mobi: +84 906 959 034
1

CONTENTS
BIDV SECURITIES COMPANY
Overview of BSC and BIDV 3
Why we will be your trusted partners 7
VIETNAM ECONOMY
China and Greece Update 9
2
W: www.bsc.com.vn Bloomberg : BSCV <GO> email :longtt@bsc.com.vn
Vietnam economy overview 13
Turning Around 17
VIETNAM STOCK MARKET
Vietnam stock market review 18
Sectors review 25

BIDV Securities Company (BSC)
Solid Foundation.
BSC was founded in 1999, IPO in 2010, listed in 2011
in Ho Chi Minh Stock Exchange (BSI) As a subsidiary
of BIDV (88%) with total Equity of USD 40 million.
3
of BIDV (88%) with total Equity of USD 40 million.
BIDV was established in 1957, listed in 2014, total
Equity of USD 1,7 Billion and total asset of USD 27
billion, the 2nd largest Bank in term of capital and
asset, the largest customer database of over 140,000
corporations (state owned and private).

BIDV Securities Company (BSC) & Services
We are your
Brokers.
Our Brokerage Team serves 75,000
4
Our Brokerage Team serves 75,000
accounts with high commitment to
service quality and customer
satisfaction. We ranked 1st for
bond and 10th for stock since 2013
(Hsx 10th, Hnx 6th).

We are your
Investment Bankers.
Our IB Team have been chosen by more
5
Our IB Team have been chosen by more
than 320 clients, raised USD1 billion of
corporate bonds and made 3 of the
largest IPO (Vinatex, BIDV and Vietnam
Airlines) in the last 2 years. Alpha South
East Asia "Best Investment Bank
Vietnam 2014“ & “Best Debt Capital
House 2015” by Asian Money

We are your
Analysts.
6
Our Research Team of 15 analysts
published close to 800 reports and
supports clients by their deep
understanding of Vietnam Macro-
economy, the stock market and a
wide range of industries.

No Reports Frequency Annually
1 Stock market Daily Report Daily 250
2 Stock market Weekly Report Weekly 50
3 Investment Advisory report Weekly 50
4 Vietnam Fixed Income Daily Daily 250
5 Vietnam Fixed Income Monthly Monthly 12
We publish our research in three
languages: English, Vietnamese
Language barrier?
No more.
7
5 Vietnam Fixed Income Monthly Monthly 12
6 Stock and Macro Monthly Monthly 12
7 Quarterly Stock and Macro Quarterly 4
8 Quarterly Sectors outlook Quarterly 4
9 Company visit note /update As request 100
10 Company reports As request 50
11 Sector report As request
12 Special Report (IPO, OTC,…) As request
languages: English, Vietnamese
and Japanese

BIDV Securities Company (BSC) & Clients
Let we be your
Trusted Partner.
Being one of the earliest
8
Being one of the earliest
securities in Vietnam means
that we understand deeply
the market of Vietnam.
75,000 Clients trusted BSC.
How about you ?

VIETNAM ECONOMY
TURNING AROUND
End of the tunnel
9

WORLD MARKET & CHINA STOCK BUBBLE
0
1000
2000
3000
4000
5000
6000
7000
01/2007
07/2007
01/2008
07/2008
01/2009
07/2009
01/2010
07/2010
01/2011
07/2011
01/2012
07/2012
01/2013
07/2013
01/2014
07/2014
01/2015
07/2015
Shanghai & Shenzhen SE Comp IndexTrading value pass over the U.S
10Source: Bloomberg
01/2007
07/2007
01/2008
07/2008
01/2009
07/2009
01/2010
07/2010
01/2011
07/2011
01/2012
07/2012
01/2013
07/2013
01/2014
07/2014
01/2015
07/2015
Shanghai SE Composite Shenzhen SE Composite
•Shanghai Composite index soared 135%,
Shenzhen index soared 170% to 3141.
•Monetary policy easing, benchmark rate cut,
reserve requirement cuts.
•Margin lending 2.3trn RMB, or 8.8% of free-
float, the highest level ever
•China have 4 million accounts open per week
(1/7 Chinese)
•More than 66% trader haven’t finished high
school.
Margin / floating rate : near 9 %

WORLD MARKET & CHINA STOCK BUBBLE
China GDP
6
7
8
9
10
11
12
13
Cinderella dance turns to midnight
•The Chinese stock market may get a bounce
here and there, but the worst is yet to come.
•Real GDP growth is clearly tracking
meaningfully below the government's full-year
target of 7%.
•if the Chinese economy fell sharply, Vietnam
11Source: Bloomberg
5
•if the Chinese economy fell sharply, Vietnam
might significantly impacted.
•Vietnam exported to China may decline (domestic demand reduce)
•Vietnam imports from China may increase because the goods relatively cheaper the
Yuan devaluation and manufacturers to push export prices.
•Investor will transfer capital to new markets. Especially in the context of Vietnam has
emerged and caused a lot of attention in the eyes of investors. Wait and see.

WORLD MARKET & GREECE
12Source: Bloomberg
The Euro area would be better off without Greece, but it is not an one off issue.
Ireland, Italy, Spain, and Portugal will be next ? EU reduce demand? EUR devaluation ?

7.7
8.4 8.17 8.48
6.23
5.32
6.78
5.89
5.03 5.42 5.98
6.28
0
1
2
3
4
5
6
7
8
9
Annual GDP growth rate (%yoy)
VIETNAM ECONOMY & The Growth turn around
13
Source: GSO, HSBC, ANZ, TCHQ, BTC, SBV, Bloomberg
-5%
0%
5%
10%
15%
20%
25%
30%
Vietnam inflation rates
0
4
8
12
16
Borrowing Rate Lending Rates
Deposit – Lending Rates

VIETNAM ECONOMY & The Rates turn around
Exports – Imports Growth rate (15%yoy)
68.8
84.0
105.0
114.4
131.3
148.0
81.5
56.5
71.6
96.0
114.6
132.2
150.0
77.7
-6
-4
-2
0
2
4
80
100
120
140
160
Imports Exports Net
71%
12%
5%
2%
2% 2%
1%
FDI
21.5
18.6
14.7
13
21.6
20.2
10
11 11
10.5 11.5
12.4
10
15
20
25
Registered Disbursed
14
Source: GSO, HSBC, ANZ, TCHQ, BTC, SBV, Bloomberg
56.5
-14
-12
-10
-8
0
20
40
60
2009 2010 2011 2012 2013 2014 2015H1
5.49 6.3
0
5
10
2009 2010 2011 2012 2013 2014 2015H1
• Trade deficit will be widen (FTAs will make it worse)
• FDI slow down (notice that FTAs will bring more inflow in the next
years)
•Oil price have negative affect to state budget and trade balance

VIETNAM ECONOMY & Vietnam Dong ?
USDVND rates rates since 2014
85
90
95
100
105
21100
21300
21500
21700
21900
USDVND rates since 2013
15Source: Bloomberg
Compared with 2009 after-crisis
Asia market. VND only devaluate
4.8% since 2013
75
80
20700
20900
06/2014 09/2014 12/2014 03/2015 06/2015
Dollar Index Free Rate Interbank Rate
SBV Rate SBV Rate Band

VIETNAM ECONOMY & The real estate turn around
16Source: CBRE Vietnam Q2/2015
•Increasing sales volume pushing prices up.
•Unsold Unit Diminishing.
•Buy-to-let investors back to the market.

2015 MACRO ECONOMY OUTLOOK
Criteria/Month
2015
2015M
1
2015M
2
2015M
3
2015M
4
2015M
5
2015M
6
GDP yoy (%) - - 6.08 - - 6.44
GDP ytd yoy (%) - - 6.08 - - 6.28
PMI 51.5 51.7 50.7 53.5 54.8 52.2
Car Consumption (unit) 19,979 12,329 16,399 18,178 17,921
IIP yoy (%) 17.5 7 9.1 9.5 7.5 11.1
IIP ytd yoy (%) 17.5 12 9.1 9.4 9.2 9.6
Retail Sales yoy (%) 13 11.6 9.4 7.1 9.3 9.2
BSC forecast 2015F
GDP (yoy) 6.2% - 6.5%
Inflation (yoy) 2% - 3%
Registered FDI
20 - 22
17
Retail Sales yoy (%) 13 11.6 9.4 7.1 9.3 9.2
Retail Sales ytd yoy (%) 13 11.4 10 8.8 9.1 9.8
Retail Sales (price adj) (%) 11.9 10.7 9.2 8 8.2 8.3
CPI mom (%) -0.20 -0.05 0.15 0.14 0.16 0.35
CPI yoy (%) 0.94 0.34 0.93 0.99 0.95 1.00
FDI Registered (bil USD) 0.66 1.19 1.84 3.72 4.29 5.49
FDI Disbursed (bil USD) 0.5 1.2 3.05 4.2 4.95 6.3
Exports (bil USD) 12.90 23.01 35.70 50.10 63.20 77.70
Imports (bil USD) 13.40 23.07 37.50 53.10 66.20 81.50
Trade balance (bil USD) -0.50 -0.06 -1.80 -3.00 -3.00 -3.80
FX rate (VND/USD) 21,317 21,348 21,555 21,590 21,815 21,839
Credit Growth (%) 0.03 0.65 1.25 2.78 4.26 6.28
NPL rate 3.49 3.59 3.81 - - -
Registered FDI
(USD bil)
20 - 22
Executed FDI
(USD bil)
11 - 12
Trade balance
(USD bil)
(7) - (8)
USDVND rate 21,673
Lending rate 8% - 10%
Deposit rate 5% - 6%

VIETNAM STOCK MARKET
IT IS TIME FOR VIETNAM
18
IT IS TIME FOR VIETNAM

VIETNAM STOCK MARKET & from 2007 to 2015
Compared
with 2009
after-crisis
Asia market
Vietnam is
Pass 2007
19
Vietnam is
extremely
lagging
behind
China stock
index and
Vnindex are
similar
Source: Bloomberg, As of July 14th 2015
Pre Crisis Top
China rocket
Abenomic

VIETNAM STOCK MARKET & Not the matter of Valuation
•Thailand 19.7
•Indonesia 21.9
Southeast Asia
Stock Market
in 2015
20
•Indonesia 21.9
•Philippines 20.8
•Malaysia 16.9
Vietnam P/E is
13.6
So it is not the
valuation that
matter
Source: Bloomberg, As of July 14th 2015

VIETNAM STOCK MARKET & Size is matter
The Biggest stocks
More to be listed.
VCB, 10.7%
GAS, 9.1%
Others, 26.8
%
VCB
GAS
VNM
CTG
VIC
BID
MSN
BVH
STB
HPG
ACB
MBB
EIB
Average Trading Turnover
Over $100 mil per session.
147
208
159 157
142
150
200
250
Mio USD
21
Total Market cap of USD 59.92 billions .The 10 Biggest stocks have the market cap
from 1 to USD 6.4 Billion. The next 10 stocks have the market cap from USD 7.1 billion.
90% is below 100 mil USD market capital.
Nguồn: Bloomberg, SBV, GSO, HSBC, ANZ,… Phòng Phân tích BSC Ngày 14/07/2015
VNM, 9.0%
CTG, 6.5%
VIC, 6.2%
BID, 5.7%
MSN, 5.2%BVH, 3.4%
STB, 1.7%
HPG, 1.6%ACB
MBB
EIB
FPT
PVD
HAG
PVS
DPM
SSI
EIB
FPT
PVD
HAG
PVS
DPM
SSI
KDC
MWG
MPC
SHB
Others
101 87
110
147
100
121
86
111
97
98
-
50
100
150
05/14 07/14 09/14 11/14 01/15 03/15 05/15
Average Turnover 3 per.Mov.Average

50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
200
400
600
800
1,000
1,200
1,400
Vietnam Stock Market – Potential Cycle
VN-index
2000-2015
Vnindex
Down 43,8%
0
50
100
150
200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015F
0
50,000,000
0
200
Jul-00 Jul-01 Jul-02 Jul-03 Jul-04 Jul-05 Jul-06 Jul-07 Jul-08 Jul-09 Jul-10 Jul-11 Jul-12 Jul-13 Jul-14
Volume VN-Index
22
10 year cycle
will be back ?
Vietnam GDP
2000-2014
USD 77 Bil
2007
USD181 Bil
2014
Vietnam GDP
rise 135%
Source: Bloomberg, GSO, BSC

Comparison Asian Market
Vnindex Inflow.
VIETNAM STOCKMARKET & Vnindex Inflow
Countries June Q2/2015 1H2015
India (833) 262 6,261
Indonesia (307) (123) 312
Foreign Indirect Investment
More to accumulated.
23
Source: Bloomberg, GSO, HSX, HNX, BSC
Indonesia (307) (123) 312
Japan (3,385) 37,318 30,841
Phillipine (258) (663) 405
Korea (18) (18) 7,345
Sri Lanka (20) (8) 14
Taiwan (311) (2,619) 2,050
Thailand (311) (211) (467)
China (46,660) (46,660) (94,740)
Pakistan 17 67 (74)
Vietnam
(HSX) 50 179 91

VIETNAM STOCK MARKET & New cycle of grow
FTAs
and FDI
SOE &
Bank
Reform
FII &
FOL
G
24
China
FED
G
Spendi
ng
Pre Crisis Top
China Bubble
NPL
EU

SECTOR REVIEW
25
wrong move checkmate

MOVEMENT OF STOCK MARKET AND SECTORS IN 2Q-15
•Besides the leading role of the Bank sector, some
other sectors rated by BSC as "Positive" such as
Construction Materials, Insurance, and IT have
outperformed VNIndex
•Sectors rated as "Neutral" or "Negative" didn’t
perform well, including Plastics, Natural
Rubber, Pharmaceutical, Fisheries, Steel and Oil &
Gas
•A few sectors rated “Positive” didn’t increase
much compared to VNIndex such as Real
Estate, Construction, Electrical, and Textile

INVESTMENT STRATEGY 3Q 2015
Influential
policies and
critical
economic
factors in
2015
27
2015

New issues in 2Q 2015
•Decree 60/2015/ND-CP – Loosening investment room for foreign investors
•Impacts from the strong decline of China’s stock market and the slowing down of China's
economic growth
•Uncertainties in the Eurozone
• "Firstly, the revival of Macroeconomics was clearer". Banking, Insurance, Real Estate will
Notable investment themes of 2015
28
• "Firstly, the revival of Macroeconomics was clearer". Banking, Insurance, Real Estate will
first benefit from this recovery
• "Secondly, Real Estate warmed again, soaring liquidity." Leading to the growth of the
Construction and Building Materials.
• "Thirdly, energy prices decreased and electricity prices increased." Supporting business
result of the Plastic, Transport, Fertilizer enterprises and indirectly affect to Consumer
enterprises
• "Fourthly, ECB and JCB loosed monetary, EUR and JPY depreciated". The dollar
continued to appreciate against the EUR and JPY
• “Fifthly, the free trade agreements (FTA)". The sectors whose large export turnover will
receive positive impacts from the FTA: Textile, Aquaculture, Footwear, Automotive Trade ...
while competitive pressures will increase in sectors such as Steel, Fertilizer, Sugarcane, …
sectors will benefit indirectly include Marine Shipping, Seaport and Industrial Zone.

New investment highlights
 Information Technology: We expect the IT sector will grow in step with the recovery
of the economy. The main fields include (1) Software Solution; (2) Integrated System
and (3) Telecommunication
 Seaport: (1) Import-export activities expected to maintain high growth thanks to the
signing of free trade agreements;(2) Infrastructure investment is being promoted;(3)
Efficient port utilization can be improved thanks to the strong participation of the
Efficient port utilization can be improved thanks to the strong participation of the
private sector;(4) The seaport companies are undervalued compared with potential
growth.
 Insurance: (1) Insurance sector recovered together with macroeconomics; (2)
Penetration of non-life insurance in Vietnam remained at 0.7%; (3) Free trade
agreements will boost insurance demand as
cargo, shipping, shipbuilding, automotive insurance ... (4) Stricter legal provisions on
insurance; (5) Improved investment performance due to the recovery of stock
market.
29

We maintain POSITIVE rating for the sectors: Real Estate, Construction, Building materials
(Cement), Textile, Electric Power, Tire, Banking, adding Seaports, Insurance and IT. According to
seasonal factor, the last 6 months is also the time of increase in revenues and profits of some
industries including Textile, Aquaculture, Marine Shipping, Building Materials and Construction.
30

BANKING SECTOR - POSITIVE
Credit Growth
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
Non-performing loans sale for VAMC
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
 Credit grew positively in the first few months of 2015, the interest rate level fell slightly, NPL
ratio decreased. In addition, commercial banks are to increase their provision and sell non-
performing loan, leading to the possibility of year-end NPL may fall under the 3% target.
 We maintain a POSITIVE rating with banking sector. This is the sector that has the most
influence on VN-Index. Credit growth is predicted to remain positive due to (1) economy
recovery, (2) low lending rate, (3) more short-term capital for mid and long-term loans (rise
from 30% to 60%).
31
-2.00% Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Năm 2013 Năm 2014 Năm 2015
--
Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015
Nợ xấu VAMC mua (cột trái) Lũy kế (cột phải)

BANKING SECTOR - POSITIVE
In terms of stocks, besides the three largest commercial banks
(VCB, BID, CTG) which prices have risen significantly since the
beginning of 2015, we assume that second tier listed commercial
banks need to be under consideration such as ACB, MBB, EIB,…
32
Ticker
EAT 2014
(billion
VND)
EAT
2015F
(billion
VND)
EPS
2015F
P/E FW P/B FW
Closing
Price
31.12.2014
Closing
price
31.3.2015
Closing
price
30.06.2015
Change
Target
price
VCB* 5,876 5,499 2,063 23.65 2.94 31,200 34,400 48,800 56.41% 61,900
BID* 4,948 5,724 2,036 10.36 1.78 12,000 16,600 21,100 75.83% 27,800
CTG* 5,712 5,690 1,528 12.57 1.30 13,100 16,500 19,200 46.56% 23,000
MBB 2,476 2,554 2,070 7.29 1.05 13,100 13,700 15,100 15.27% 16,600
ACB* 952 1,014 1,131 18.13 1.48 14,800 16,000 20,500 38.51% 24,600

REAL ESTATE SECTOR – POSITIVE
Updates for 6 months of 2015
• The real estate market continues to show positive signs: based on (1) The number of successful
transactions rose sharply; (2) Selling price is stable
• Circular 200 does not cause big impact on real estate companies
• Lossen provisions of foreigners being able to purchase and onw real estate property since 01/07
• Credit for real estate increased by 11% yoy• Credit for real estate increased by 11% yoy
We keep our POSITIVE assessment to the real estate sector and remain our opinion that it will be
capable of being the leading industry together with the banking sector this year
33
Ticker
Rev
2014
EAT
2014
Rev
2015
EAT
2015
EPS
2015
P/E F
P/B
F
Closing
price
31/12/2014
Closing
price
31/03/2015
Closing
price
30/06/2015
Change
Target
price
VIC* 27,727 3776 35,671 4649 3,196 14.00 5.41 47,700 47,000 43,500 14.78 % 53,000
DXG* 523 168 716 258 2,562 6.50 2.47 14,000 17,000 16,300 36.97% 17,000
KBC 1,069 326 2,182 615 1,293 12.92 1.12 15,900 16,000 15,500 -2.52% 20,400
KDH 631 102 1,252 202 1,600 14.06 1.22 20,200 21,900 21,700 7.43% 25,100

CONSTRUCTION SECTOR – POSITIVE
Updates for 6 months of 2015
• Construction value for 6 months of 2015 is up 6.8% yoy.
• The recovery of real estate sector
• Manufacturing and processing industry attracts foreign investors
• Transportation infrastructure projects continue to be implemented and accelerated
We keep our POSITIVE assessment of construction industry in 2015. We recommended BUY and long-
term holding with LCG, HUT and CII. Additionally, we represent a new potential stock (HBC) with BUY andterm holding with LCG, HUT and CII. Additionally, we represent a new potential stock (HBC) with BUY and
HOLD for long-term.
34
Ticker
Rev
2014
(bil
dong)
EAT
2014
(bil
dong)
Rev
2015E (bil
dong)
EAT
2015E (bil
dong)
EPS
2015
P/E F
2015
P/B F
2015
Closing
price
31/12/14
Closing
price
31/3/15
Closing
price
30/6/2015
Change
Target
price
LCG 1,266 -12 1,467 45 593 13.5 0.62 8,500 7,000 8,000 -5.88% 11,400
HUT* 2,762 259 2,316 145 1,129 10.36 1.04 14,200 15,500 11,700 -7.87% 13,551
HBC 3,518 69 5,300 180 2,414 9.94 1.64 14,800 17,900 24,000 62.16% 26,549
CII* 2,606 388 3,145 462 2,366 10.02 1.15 20,300 18,500 23,700 24.74% 28,388

TECHNOLOGY SECTOR - POSITIVE
Technology – Telecommunication Sector will have
many potential opportunities to grow from 2015
thanks to (1) The boosting in Software solution field
(2) The increase in companies’ disbursement for
Information system service (3) Increasing investment
in telecommunication infrastructure.
We recommend POSITIVE assessment to InformationWe recommend POSITIVE assessment to Information
Technology & Telecommunication sector in the last 6
months of 2015 and notice several stocks including
FPT, CMG, ITD, HIG.
35
Ticker
Rev
2014
(bil
dong)
EAT
2014
(bil
dong)
Rev
2015E
(bil
dong)
EAT
2015E
(bil
dong)
EPS
2015
P/E F
2015
P/B F
2015
Closing
price
31/12/14
Closing
price
31/3/15
Closing
price
30/06/15
Change
Target
price
FPT* 32,645 2,079 39,600 2,359 4,682 9.91 2.14 48,000 48,400 46,400 13.45% 56,186
CMG 3,265 118 3,093 155 1,800 8.67 1.31 8,900 11,300 15,600 75.28% 15,668
ITD 448 20 540 33 1,795 9.67 1.14 9,300 12,800 19,000 104.30% 17,357
HIG 503 5 575 11 506 14.22 0.42 4,600 5,100 7,200 56.52% 7,592

INSURANCE SECTOR - POSITIVE
We recommend Insurance sector because:
(1) Insurance sector recovered together with macroeconomics; (2) Penetration of non-life insurance in
Vietnam remained at 0.7%; (3) Free trade agreements will boost insurance demand as cargo, shipping,
shipbuilding, automotive insurance ... (4) Stricter legal provisions on insurance; (5) Improved investment
performance due to the recovery of stock market.
We recommend: BIC, BMI (however market movements reflected their prospect)
Combine Ratio Growth rate
36
100.0%
101.9%
101.6% 101.6%
99.4%
98.0%
98.5%
99.0%
99.5%
100.0%
100.5%
101.0%
101.5%
102.0%
102.5%
2010 2011 2012 2013 2014
25.24%
20.20%
11.03%
7.04%
12.44%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
2010 2011 2012 2013 2014
Combine Ratio Growth rate

SEAPORT SECTOR - POSITIVE
We recommend this sector due to the fact that:
(1) Import-export activities expected to maintain high growth thanks to the signing of free trade
agreements; (2) Infrastructure investment is being promoted; (3) Efficient port utilization can be
improved thanks to the strong participation of the private sector; (4) The seaport companies are
undervalued compared with potential growth
The seaport companies are undervalued with growth potential: the P/E ratio of 7.4 inThe seaport companies are undervalued with growth potential: the P/E ratio of 7.4 in
average, significantly lower than the P/E of the market overall of 12.8. This is the P/E belongs to
firms with low growth or no growth. With current valuations, we believe that the seaport companies
are undervalued with positive growth prospects in the coming years The tickers recommended:
VSC, HAH, GMD.
37

OIL & GAS SECTOR - NEUTRAL
We expect that oil prices will continue to recover in the last 6 months, prospect of groups in
this sector continues to diverge :
• Upstream and Midstream group: although service prices decline, following the trend of oil
prices but thanks to increasing output, enterprises like PVS and PVB are expected to
maintain positive business result in last two quarters.
• Downstream group: thanks to the change of CNG input pricing policies (pegged to FO
prices), enterprises like PGS and CNG improved profit margins. Also, trading LPG of suchprices), enterprises like PGS and CNG improved profit margins. Also, trading LPG of such
enterprises LPG as PGS, PVG was better than 2014.
38
Ticke
r
Rev
2014
EAT
2014
Rev
2015E
EAT
2015E
EPS
2015
P/E F
2015
P/B F
2015
Closing
price
31/12/14
Closing
price
31/03/15
Closing
price
30/06/15
Chan
ge
Target
price
PVS 31,373 1,765 28,227 1,466 3,163 8.50 1.13 26,900 22,600 26,900 0% 30,498
PVB* 1,001 147 1,058 115 5,347 7.56 1.74 44,000 33,100 40,400 -8% 46,123
PVD 20,813 2,498 18,534 2,296 7,160 7.33 1.32 64,500 44,800 52,500 -19% 62,292
PGS 7,484 191 6,519 223 2,907 7.46 0.89 26,900 19,400 21,700 -19% 24,829
CNG 1,086 112 1,153 123 4,540 6.41 1.52 32,400 31,400 29,100 -10% 32,799

STEEL SECTOR - NEUTRAL
The overview of steel sector in 2Q has been more optimistic than 1Q by the increase in
consumption and the slowdown of the decreasing velocity of steel price from March.
However, the threat from cheap imported steel still exists when free trade agreements are
officially effective
We remain the NEUTRAL perspective toward steel sector in 2015. In Quarter II, the
performance of steel companies’ stocks have recovered significantly by a slowdown in the
decrease of iron ore price and expectation about the operation result when constructionaldecrease of iron ore price and expectation about the operation result when constructional
season started. We recommend NKG, HSG, and HPG
39
Ticker
Rev
2014
(bil
dong)
EAT
2014
(bil
dong)
Rev
2015E
(bil
dong)
EAT
2015E
(bil
dong)
EPS
2015
P/E F
2015
P/B F
2015
Closing
price
31/12/14
Closing
price
31/3/15
Closing
price
30/06/15
Change
Target
price
NKG 5,835 76 7,642 117 2,717 5.12 0.96 13,400 14,700 15,000 3.73% 19,105
HSG* 14,990 410 16,500 450 4,465 9.52 1.56 47,500 33,800 42,500 -7.21% 46,879
HPG* 25,525 3,250 22,500 2,300 3,117 9.27 1.56 53,000 44,100 28,900 -16.23% 31,170

40
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trust and your confidence in us

Vietnam Stock market update Q3.2015

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