BSC stock pitch for 2019 - 2020 Vietnam

1. Stock pick 2H2019 - 2020
• Long Tran Head of research
• Please feel free to contact me at
• E Longtt@bsc.com.vn
• P +84 4 39352722 (118)
• M +84 906 959 034
• S rongbeo
• 08/07/2019 (không phổ biến trước ngày 26/07/2019)
BSC

2. Content List
• Investment themes 03
• Retail (consumer) + bank + FOL + Divestment
• Benefit from International trade + Public Investment
• Oil Price and Other
• Top pick Stocks (2019 - 2020) 08

3. 3
Investment themes
State
Divestment &
FOL and new
product (CW)
Benefit from
International
Trade
CPTPP,
EVFTA,Trade War
Turnaround
Oil price
sensitive
Local grow
oriented. Low
Beta and
organic growth
(retail, utilities,
defensive)
1 2 3 4 5
Public
Investment &
infastructure

4. Top stocks pick: Retail + bank + FOL + Divestment
Market Cap
(Bil VND)
Revenue 2019F % yoy PAT 2019F % yoy EPS 2019F P/E fw P/B fw ROA 2019F ROE 2019F
Closing
price
25/6/2019
Target
price
Upside
ACB 36,168 15,915 13% 5,764 12% 3,948 7.3 1.6 1.6% 27.6% 28,800 32,686 13.5%
MBB 44,064 23,501 20% 7,651 24% 3,082 6.7 1.1 1.9% 19.2% 20,600 28,424 38.0%
TCB 71,330 21,075 15% 8,908 5% 2,548 7.9 1.2 2.7% 15.9% 20,200 25,986 28.6%
VCB 261,476 44,988 15% 16,575 13% 4,563 15.2 3.5 1.4% 26.1% 69,500 N/A N/A
VIB 12,529 7,606 25% 2,600 19% 3,249 5.0 1.0 1.6% 21.9% 16,300 21,658 32.9%
MWG 40,297 102,644 19% 3,775 31% 8,304 10.7 3.3 11.0% 31.0% 91,800 132,100 43.9%
PNJ 16,216 17,508 19% 1,196 25% 4,970 14.5 3.5 15.0% 26.0% 72,000 91,000 26.4%
VNM 234,743 55,125 5% 10,592 4% 5,484 23.6 7.5 29.3% 36.5% 129,100 137,100 6.2%
VTP 8,191 6,687 36% 388 39% 6,630 21.7 7.9 12.3% 44.0% 144,200 123,500 -14.4%
FPT 31,327 26,808 15% 3,826 19% 4,643 10.0 1.9 14.0% 23.0% 46,500 59,500 27.5%
REE 9,922 5,414 6% 1,985 5% 6,593 4.9 0.9 11.4% 17.8% 32,400 38,195 17.9%
POW 35,362 33,075 1.8% 2,740 33.5% 1,020 14.3 N/A N/A N/A 14,800 N/A N/A
DRC 2,685 3,405 -4% 135 -4% 1,020 17.9 1.4 5.0% 8.8% 18,300 23,000 25.7%
DGC 3,471 5,619 -7% 658 -25% 5,734 4.8 0.8 13.8% 19.0% 27,900 38,000 36.2%
BMI 2,247 3,214 1% 179 10% 1,866 13.34 0.99 3.20% 7.90% 24,900 30,100 20.9%

5. Top stocks pick: Benefit from Internation trade + Public Investment
Market Cap (Bil
VND)
Revenue 2019F % yoy PAT 2019F % yoy EPS 2019F P/E fw P/B fw
ROA
2019F
ROE 2019F
Closing
price
25/6/201
9
Target
price
Upside
VHC 8,178 9,036 -3% 1,240 -15% 13,377 6.4 1.7 18.3% 28.3% 86,000 102,000 18.6%
MSH 1,967 4,472 13% 419.8 13% 8,170 7.1 2.2 16.0% 36.7% 58,000 61,500 6.0%
TNG 933 4,366 21% 232 28% 3,492 5.6 1.3 7.9% 25.2% 19,700 21,000 6.6%
PTB 3,174 5,395 14% 498 25% 8,703 7.8 1.4 21.0% 28.2% 67,600 81,300 20.3%
VSC 1,736 1,696 0% 329 -7% 4,561 7.0 0.9 11.0% 13.9% 31,800 34,600 8.8%
GMD 7,839 2,972 10% 639 -66% 1,960 14.3 1.1 5.6% 8.7% 25,950 28,970 11.6%
KBC 7,210 3,581 43% 1,108 37% 2,133 6.8 0.7 5.9% 10.7% 14,400 18,195 26.4%
PHR 7,845 1,486 -5% 511 -20% 3,569 6.6 2.8 7.6% 13.5% 57,400 57,940 0.9%
LHG 1,046 487 13% 146 -19% 2,913 6.7 0.7 7.7% 12.7% 19,650 23,389 19.1%
NLG 6,887 3,298 -5% 956 25% 4,285 7.5 1.2 8.0% 17.0% 28,800 40,500 40.6%
VHM 259,587 80,063 107% 18,412 25% 5,515 17.3 4.9 10.3% 34.7% 77,500 95,600 23.4%
HDG 3,820 5,543 29% 689 33% 5,440 5.9 1.4 5.6% 25.1% 32,200 43,500 35.1%
PC1 3,080 5660 11.3% 471 -3% 2960 6.3 N/A N/A N/A 19,050 26,640 40.2%
HPG 69,983 67,967 45% 5,467 -36.4% 1,980 11.5 N/A N/A N/A 23,100 19,900 -13.9%
CTD 7,913 27,149 -5% 1,280 -15% 15,557 6.5 0.9 7.5% 15.4% 102,100 108,900 6.7%
HBC 3,521 17,191 -6% 526 -15% 2,667 6.5 1.2 3.1% 16.7% 15,250 16,000 4.9%

6. Top stocks pick: Oil Price and Other
Market Cap (Bil
VND)
Revenue 2019F % yoy PAT 2019F % yoy EPS 2019F P/E fw P/B fw
ROA
2019F
ROE 2019F
Closing
price
25/6/2019
Target
price
Upside
GAS 187,567 79,922 3% 12,916 15% 6,748 16.1 3.8 20.0% 25.0% 103,500 118,000 14.0%
PVS 10,897 14,740 0% 1,094 7% 2,014 11.3 0.9 5.0% 9.0% 22,800 25,900 13.6%
PVD 7,121 5,370 0% 350 86% 912 19.3 0.5 2.0% 3.0% 18,600 22,000 18.3%
PVT 4,602 8,158 8% 793 2% 2,220 7.8 0.8 6.3% 12.5% 16,200 19,320 19.3%
VEA 51,025 7,424 12% 8,014 13% 6,095 9.7 1.6 31.0% 33.0% 59,200 61,446 3.8%
ACV 182,655 17,350 7.8% 7,141 15% 2,952 28.8 5.3 12.2% 20.4% 85,000 76,500 -10.0%
HVN 41,613 73,306 3.6% 3,567 69% 2,515 16.8 2.6 5.1% 15.6% 42,200 39,000 -7.6%
AST 2,880 1,089 25.9% 169 5% 4,209 15.2 4.5 21.1% 26.1% 64,000 75,500 18.0%
VJC 67,430 59,284 11% 7,160 34% 11,750 10.5 4.7 16.1% 38.7% 123,900 135,000 9.8%
BMP 4,682 4,275 9% 407 -5% 4,480 9.6 1.3 13.1% 15.5% 43,300 57,300 32.3%
HT1 5,590 9,058 8% 753 17% 1,775 8.9 1.2 7.3% 14.4% 15,850 18,960 19.6%

7. Top Pick Stocks
“for 2019 - 2020”
7

8. Top stocks pick: Banking
• Positive results of banking sector in 1Q2019. Credit growth in 1Q2019 was 3.57%/credit
growth of 14% setting by SBV. Positive banking results: TOI +10%, PBT +12.8% yoy. On
average, NIM of all listed bank = 3.08% (1Q2018 = 3.11%), Fee income +48% yoy. Higher asset
quality: NPL = 1.36% (-5 bps), NPL coverage ratio = 74%.
• Profitable bank with strong asset quality. NIM = 3.53%, +18bps while sector -5bps, credit
growth +3.84%, NII +20.4% yoy. Strong asset quality: NPL = 0.68% (lowest among listed banks),
NPL coverage ratio = 158%. TOI = 3,490 bil. VND (+5.7% yoy), PBT = 1,707 bil. VND (+14.6%
yoy).
• Plan of 2019. Total assets +15%, credit growth +13%, deposit +15%, NPL < 2%, PBT = 7,279
bil. VND (+14% yoy). ACB plans to pay stock dividend = 30% in 2019 to raise capital.
• Catalyst: (1) Process the assets of G6 (one off return), (2) sign the bancassurance in near
future, (3) sell the treasury shares to increase CAR.
• Risk: (1) higher NPL ratio due to increasing sales, (2) conflicting interest among investors.
ACB
VND 32,686
Up +13.1%
• Market cap VND 35.7 trillion
• Current price VND 28,900 /share
• PE FW 7.3x, P/B 2019 1.6x,
• Room left for foreigners 0%
9/24/2019BSC Research
8
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Total assets (bil.) 201,457 233,681 284,316 329,333 363,918
Total equity (bil.) 12,788 14,063 16,031 21,018 25,739
Revenue (bil.) 6,220 7,563 11,439 14,033 15,915
NPAT (bil.) 1,028 1,325 2,118 5,137 5,764
EPS 1,086 1,360 2,042 3,870 3,948
BVPS 13,637 14,997 15,604 16,311 18,159
NIM 3.33% 3.36% 3.44% 3.55% 3.49%
ROA 0.54% 0.61% 0.82% 1.67% 1.66%
ROE 8.17% 9.87% 14.08% 27.73% 24.66%

9. Top stocks pick: Banking
• Positive results of banking sector in 1Q2019. Credit growth in 1Q2019 was 3.57%/credit
growth of 14% setting by SBV. Positive banking results: TOI +10%, PBT +12.8% yoy. On
average, NIM of all listed bank = 3.08% (1Q2018 = 3.11%), Fee income +48% yoy. Higher asset
quality: NPL = 1.36% (-5 bps), NPL coverage ratio = 74%.
• MBB is one of the highest profitable bank with strong asset quality. However, the casa was
reduced which could affect the profitability of MBB in the future. NIM = 4.69%, credit growth =
8.79% ytd in 1Q2019.
• Good bank, low valuation. Current P/B = 1.3x compared with median P/B of VCB, BID, CTG,
TCB, VPB, ACB, VIB = 1.93x.
• Selling 5% of capital to Korean’s investors. This will reduce the free float of MBB share.
• Catalyst: (1) M Credit contribution which improve NIM, (2) low valuation, (3) already applied
Basel II early than expect which help MBB to manage the credit growth by CAR.
• Risk: (1) higher NPL ratio due to increasing sales + expanding MB Shinsei, lots of free float.
MBB
VND 28,424
Up +37.6%
• Market cap VND 43.5 trillion
• Current price VND 20,900 /share
• PE FW 7.2x, P/B 2019 1.17x,
• Room left for foreigners 0%
9/24/2019BSC Research
9
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Total assets (bil.) 221,042 256,259 313,878 362,361 445,033
Total equity (bil.) 23,183 26,588 29,601 34,173 44,214
Revenue (bil.) 8,772 9,855 13,867 19,539 23,501
NPAT (bil.) 2,496 2,912 3,520 6,190 7,651
EPS 1,464 1,610 1,829 2,736 3,082
BVPS 14,489 15,524 16,305 15,817 18,949
NIM 3.67% 3.52% 4.14% 4.53% 4.59%
ROE 12.56% 11.70% 12.53% 19.41% 19.21%
ROA 1.18% 1.22% 1.23% 1.83% 1.87%

10. Top stocks pick: Banking
• Positive results of banking sector in 1Q2019. Credit growth in 1Q2019 was 3.57%/credit
growth of 14% setting by SBV. Positive banking results: TOI +10%, PBT +12.8% yoy. On
average, NIM of all listed bank = 3.08% (1Q2018 = 3.11%), Fee income +48% yoy. Higher asset
quality: NPL = 1.36% (-5 bps), NPL coverage ratio = 74%.
• Leader in many segments with solid customer base. (>7 big ecosystems including
Vingroup and Masan) and leader in many segments which promise high growth rate. In
1Q2019, TOI = 4,395 bil VND (-5.7% yoy), PBT = 2,617 bil VND (+1.9% yoy). Credit growth in
1Q2019 = -0.28% yoy, NIM has improved to 4.41% as restructuring the loan and taking
advantage of high casa (25% of deposit), NII +31.9% yoy. Average asset quality among listed
banks: NPL = 1.34%, NPL coverage ratio = 87.7%.
• Plan of 2019. Total assets +17% yoy, deposit +32% yoy, credit growth = 13%, NPL <2%, PBT =
11,750 bil. VND (+10% yoy).
• Catalyst: (1) High casa (25% of deposit), (2) superior profit from NII, (3) expectation from Vin
city.
• Risk: (1) higher NPL ratio due to increasing sales, (2) depends on large corporate customers.
TCB
VND 25,986
Up +27.7%
• Market cap VND 70.6 trillion
• Current price VND 20,350 /share
• PE FW 8x, P/B 2019 1.2x,
• Room left for foreigners 0%
9/24/2019BSC Research
10
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Total assets (bil.) 191,994 235,363 269,392 321,049 342,118
Total equity (bil.) 16,458 19,586 26,931 51,783 60,575
Revenue (bil.) 9,344 11,919 16,344 18,350 21,075
NPAT (bil.) 1,529 3,149 6,446 8,474 8,908
EPS 1,694 3,525 7,719 2,424 2,548
BVPS 18,537 22,062 23,106 14,809 17,324
NIM 4.39% 4.15% 3.78% 4.02% 4.40%
ROA 0.83% 1.47% 2.55% 2.87% 2.69%
ROE 9.73% 17.47% 27.71% 21.53% 15.86%

11. Top stocks pick: Banking
• Positive results of banking sector in 1Q2019. Credit growth in 1Q2019 was 3.57%/credit
growth of 14% setting by SBV. Positive banking results: TOI +10%, PBT +12.8% yoy. On
average, NIM of all listed bank = 3.08% (1Q2018 = 3.11%), Fee income +48% yoy. Higher asset
quality: NPL = 1.36% (-5 bps), NPL coverage ratio = 74%.
• Leading bank with strongest asset quality. TOI = 11,768 bil. VND (+18.6% yoy), PBT = 5,878
bil. VND (+34.8% yoy). Improving profitability as NIM = 3.21% (+72 bps), credit growth = 6.2%,
NII +37.1% yoy, Fee income +21.3% yoy, CIR = 37.3% (1Q2018: 41%), ROAA = 1.39%, ROAE
= 26.8%. Strongest asset quality among listed banks: NPL = 1.02%, NPL coverage ratio = 169%,
already applied basel II (earlier than expectation).
• Issuing shares to foreign investors (GIC, Mizuho) of 10% to raise capital. Already issued 3% to
GIC in 1Q2019.
• Catalyst: (1) Issue share to foreign investors (GIC, Mizuho) (7% of capital), (2) leading bank
with superior return.
• Risk: High valuation.
VCB
VND N/A
Up N/A
• Market cap VND 261 trillion
• Current price VND 69,500 /share
• PE FW 15.2x, P/B 2019 3.5x,
• Room left for foreigners 0%
9/24/2019BSC Research
11
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Total assets (bil.) 674,395 787,935 1,035,293 1,072,983 1,259,063
Total equity (bil.) 42,495 45,292 49,443 60,103 66,948
Revenue (bil.) 21,202 24,886 29,406 39,288 44,988
NPAT (bil.) 5,332 6,895 9,111 14,658 16,592
EPS 1,994 1,911 2,527 4,031 4,563
BVPS 13,933 13,365 14,470 17,589 19,593
NIM 2.54% 2.61% 2.47% 2.77% 3.01%
ROA 0.85% 0.94% 1.00% 1.39% 1.42%
ROE 12.79% 15.71% 19.23% 26.76% 26.12%

12. Top stocks pick: Banking
• Positive results of banking sector in 1Q2019. Credit growth in 1Q2019 was 3.57%/credit
growth of 14% setting by SBV. Positive banking results: TOI +10%, PBT +12.8% yoy. On
average, NIM of all listed bank = 3.08% (1Q2018 = 3.11%), Fee income +48% yoy. Higher asset
quality: NPL = 1.36% (-5 bps), NPL coverage ratio = 74%.
• Leader in automobile loan. VIB is the leader of automobile loan with around 20%-25% market
share. Credit growth in 2019 is 35% (Q2: +16% ytd) which left more room for VIB to lend the
customers. NIM = 4.01% in 1Q2019.
• Gradually improve the asset quality. NPL = 2.41% (sector = 1.41%), NPL coverage ratio =
40.3% (sector = 80.3%). VIB is active in dealing with NPL, and we believe that VIB can reduce
the NPL to below 2% in 2019.
• Low valuation. Current P/B = 1x compared with median P/B sector = 1.4x.
• Catalyst: (1) Automobile sector is forecasted to +30% in 2019, (2) low valuation, (3) already
applied Basel II early than expect which help VIB to manage the credit growth by CAR.
• Risk: (1) higher NPL ratio due to increasing sales, (2) medium asset quality.
VIB
VND 28,424
Up +37.6%
• Market cap VND 12.4 trillion
• Current price VND 16,400 /share
• PE FW 5x, P/B 2019 0.99x,
• Room left for foreigners 0%
9/24/2019BSC Research
12
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Total assets (bil.) 84,309 104,517 123,159 139,166 183,348
Total equity (bil.) 8,611 8,743 8,788 10,668 13,052
Revenue (bil.) 2,929 3,401 4,089 6,086 7,606
NPAT (bil.) 521 562 1,124 2,194 2,600
EPS 1,161 1,125 1,958 2,741 3,249
BVPS 17,773 15,489 15,568 13,616 16,660
NIM 3.13% 2.95% 3.18% 3.82% 3.95%
ROE 6.09% 6.47% 12.83% 22.55% 21.92%
ROA 0.63% 0.59% 0.99% 1.67% 1.61%

13. Top stocks pick: Retail
• The improving operation quality is one of key driven for NPAT’s growth. SG&A ratio
decrease from 12.6% in Q1/2018 to 12.2% in Q1/2019 thanks to (1) Improving of labor
productivity and (2) IT application. We supposed that the room for decreasing of SG&A ratio will
be limited.
• MWG’s grocery will achieve the break-even point at store and DC level earlier than
planned). Gross margin in 2018 increased to 18% from 12% in 2017. The average revenue per
grocery store in 5M2019 reached VND 1.35 billion/months.
• We believe that BHX will witness the rapid expansion store in number and geographical
location. The number of its store 5M/2019 is 545 stores with a target of 800 stores at the end of
2019. In currently, BHX’s chain stores are present in 12 provinces
• CE chain continues to be a key driver for MWG’ growth in 2019 and 2020 thanks to (1)
Rising the store opening and (2) Increasing their product portfolio. MWG expect that a total
number of CE’s store will reach 900 stores and its market share increase to 45%-50%.
• Risk : (1) The challenge in building logistic system and DC.
MWG
VND 132,100
Up 43.9%
• Market cap VND 40.6 trillion
• Current price VND 91,800 /share
• PE FW 10.7x, P/B 2019 3.3x,
• Room left for foreigners 0%
9/24/2019BSC Research
13
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 7,266 14,854 22,823 28,140 33,855 42,828
Total equity (bil.) 2,481 3,838 5,905 8,976 11,997 2,481
Revenue (bil.) 25,253 44,613 66,340 86,516 102,644 127,371
NPAT (bil.) 1,072 1,577 2,206 2,881 3,775 4,979
EPS 7,297 10,246 6,958 6,496 8,304 11,226
BVPS 16,889 24,929 18,628 20,238 27,050 36,576
ROS 5.2% 4.5% 4.2% 4.5% 5.1% 5.2%
ROE 43% 41% 37% 32% 31% 31%
ROA 15% 11% 10% 10% 11% 12%

14. Top stocks pick: Consumer
• The difficulty in finding locations and the problem of ERP system lead to the slow-down in
opening the new store. As of 20th May 2019, PNJ has opened 8 new stores, which helps increase
the total number of stores to 332 stores. The primary strategy of PNJ continues expanding PNJ
footprint in 2nd tier 3rd tier cities or towns. We supposed that the room for the opening store in Tier 1
(District 1,3,4,5,10, Binh Thanh, Tân Bình, Go Vap) was limited due to the lack of prime location.
• The error of transferring data from the old system to the new ERP-system interrupted PNJ’s
operation in April – May/2019 according to PNJ’s management. This led to the out-of-stock
problem and the slowdown in revenue growth. PNJ said that the system would operate smoothly
and get back to their track from the August 2019. The sales in 6M2019 expected to record the
growth with one digit.
• However, we supposed that the gross margin has improved will support to NPATMI’s growth
in 2019 thanks to (1) The increased weight of gold jewelry, in specifically gem & diamond’s
contribution, (2) Mix-product and (3) the rising ticket size (+5% YoY).
• SSSG in 1Q/2019 decreased significantly from 20% in 2018 to 11% due to (1) The opening of
PNJ-Next and (2) The slow-down demand of Mekong Delta river and (3) The error of ERP’s
system. We assume that the SSSG of PNJ in 2019 is around 9% and 15% in 2020 respectively.
PNJ
VND 91,000
Up +26.5%
• Market cap VND 16.0 trillion
• Current price VND 72,000 /share
• PE FW 14.5x, P/B 2019 3.5x,
• Room left for foreigners 0%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 2,976 3,588 4,492 6,303 7,959 9,505
Total equity (bil.) 1,315 1,500 2,950 3,745 4,541 5,734
Revenue (bil.) 7,739 8,615 11,049 14,680 17,508 20,947
NPAT (bil.) 76 451 725 960 1,196 1,511
EPS 769 4,584 6,705 5,749 4,970 6,281
BVPS 13,383 15,267 27,285 22,427 20,398 25,388
ROS 8.1% 8.5% 8.6% 8.7% 9.0% 9.0%
ROE 6% 30% 25% 26% 26% 27%
ROA 3% 13% 16% 15% 15% 16%9/24/2019BSC Research
14
INVESTMENT THESIS

15. Top stocks pick: Consumer
• Sustainable growth in Q1/2019. Rev and NPAT Q1/2019 reached VND 13,230 bil. (+9.05%
YoY) and VND 2,774 bil. (+2.7% YoY) thanks to 10% of domestic growth, but export was flat.
Rev and NPAT post MI 2019`s plan are VND 56,300 bil. (+7% YoY) and VND 10,480 bil. (+2.5%
YoY).
• Net margin 2019 maintains 19-20%. Selling prices of powdered milk will increase slightly by 1-
2% in 2019 due to higher raw milk prices (WMP). VNM has finalized WMP for 1H2019 but the
possibility of 2H2019 WMP fluctuations will affect profit margin. Besides, SG&A/Rev 2019 will be
maintained as 25.5%.
• Opportunities and challenges in Chinese market. Vietnam and China signed a protocol on
veterinary requirements and public health for Vietnamese dairy products.
• Catalyst: VNM pursues to acquire GTN to expand dairy farm and market share.
• Risks: (1) Low domestic growth (2) Large SG&A/Rev (3) WMP fluctuation.
VNM
VND 137,100
Up +6.2%
• Market cap VND 225.5 trillion
• Current price VND 129,100 /share
• PE FW 23.6x, P/B FW 7.5x,
• Room left for foreigners 40.9%
9/24/2019BSC Research
15
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 27,478 29,379 34,667 37,366 37,102 39,918
Total equity (bil.) 20,693 22,169 23,375 26,271 29,473 31,046
Revenue (bil.) 40,223 46,965 51,135 52,561 55,125 57,752
NPAT (bil.) 7,770 9,364 10,278 10,205 10,592 11,380
EPS 4,269 4,874 5,296 5,295 5,484 5,904
BVPS 11,973 12,785 13,421 15,086 16,925 16,925
ROS 19.3% 20% 20.1% 19.4% 19.2% 19.7%
ROE 38.6% 43.7% 45.2% 40.8% 36.5% 37.7%
ROA 29.2% 33% 32.2% 28.4% 29.3% 29.6%

16. Top stocks pick: Retail
• Second largest retailer in mobile market FRT owns 2 major brand FPT Shop and F- Studio,
both of which have 541 shops up to Q1.2019. About Long Chau Shops, up to 15.6.2019, FRT
has 40 shops opened.
• 5M Business Result Revenue and NPAT are respectively at 6,600 bil VND (+8% YoY) and 119
bil VND (+9% YoY), indicating NPAT in April and May growing by 22% YoY.
• Long term perspective is not clear Slowing down in mobile market and difficulties in opening
new stores are challenge for FRT to maintain growth. Moreover, accessories and other programs
(F-Friends, Subsidy) and Long Chau Shop still do not have impact on the P&L yet. We also
doubt that Long Chau may take more time to be profitable due to low demand through
drugstores chain.
• Valuation FRT is at PE trailing 12.2, equivalent to the median PE of retail sector. The stock price
has recently dramatically increased, raising the PE ratio.
• Risk: (1) Slow down in opening shop (2) Low demand in drug purchase through drugstores
FRT
TP: N/A
• Market cap VND 3.9 trillion
• Current price VND 57,400
/share
• PE FW 9.3x, P/B 2019 2.7x
• Room left for foreigners 0.8%
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 1,571 2,623 4,710 3,871 5,355 5,877
Total equity (bil.) 61 312 515 796 1,159 1,483
Revenue (bil.) 5,282 7,950 10,853 13,146 15,298 17,706
NPAT (bil.) 41 146 207 290 348 404
EPS 7,009 10,067 7,030 4,961 5,764
BVPS 6,937 15,596 25,762 19,911 16,673 21,437
ROS 0.8% 1.8% 1.9% 2.2% 2.3% 2.3%
ROE 78.1% 50.2% 44.2% 35.6% 30.6%
ROA 6.9% 5.7% 6.8% 7.5% 7.2%9/24/2019BSC Research
16
INVESTMENT THESIS

17. Top stocks pick: Portal
• VTP is the first listed company operating in the fast growing delivery industry thanks to the
booming of E – commerce. According to MIC, the courier market grew at CAGR of 10.5% in
2013 – 2017.
• In Q1.2019, VTP continues to maintain the impressive growth: Rev +52.7% YoY, NPAT
+42.7% YoY. BSC comments that the growth is mainly from growth of number of delivered
parcels.
• Viettel Post are launching many apps: My Go (Delivery), Voso (E-Commerce). Both may
create eco system for Viettel Post
• Catalyst: Strategic stockholder
• Risk: (1) Decrease in volume (2) Out of date technology, (3) Fierce competition and cash
burning business environment
VTP
VND 123,500
Up -14.4%
• Market cap VND 8.4 trillion
• Current price VND 144,200
/share
• PE FW 21.7x, P/B 2019 7.9x
• Room left for foreigners
31.4%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 615 1,077 1,751 2,834 3,924 4,626
Total equity (bil.) 186 366 489 680 942 1,313
Revenue (bil.) 1,993 2,928 4,031 4,922 6,687 8,973
NPAT (bil.) 63 117 170 279 388 529
EPS 4,675 3,933 5,729 6,216 6,630 9,045
BVPS 26,908 15,971 16,490 16,441 18,257 22,434
ROS 3.1% 4.0% 4.2% 5.7% 5.8% 5.9%
ROE 39.0% 42.4% 39.8% 47.7% 44.4% 39.7%
ROA 12.6% 13.8% 12.0% 12.2% 12.3% 13.9%
9/24/2019BSC Research
17
INVESTMENT THESIS

18. Top stocks pick: Technology
• Digital Transformation project is the key growth for Software Outsourcing whose growth is
40%, higher than 33% growth of Non Digital Transformation project
• M&A opportunities in foreign markets may create synergy for the services FPT provide for
clients
• Valuation has changed from “Cheap” to “Fair”. Current PE FW is ~10.0, approaching the
highest PE ratio of 12.9
• Catalyst: (1) Divestment from SCIC (2) Digital Transformation project
• Risk: (1) Workforce shortage (2) Competition with Chinese and Indian companies
FPT
VND 59,500
Up +27.5%
• Market cap VND 30.6 trillion
• Current price VND 46,500
/share
• PE FW 10.0x, P/B 2019 1.9x
• Room left for foreigners 0% 2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 26,046 29,833 28,774 29,726 24,955 28,932
Total equity (bil.) 10,180 11,445 14,347 14,763 18,335 22,566
Revenue (bil.) 37,960 39,531 42,170 23,213 26,808 30,870
NPAT (bil.) 2,438 2,576 2,905 3,228 3,826 4,532
EPS 3,811 3,410 5,129 3,897 4,643 5,500
BVPS 21,579 20,727 21,520 20,302 24,940 30,406
ROS 6.42% 6.52% 8.27% 13.91% 14.3% 14.7%
ROE 23.95% 22.50% 20.25% 23.06% 23.1% 22.2%
ROA 9.36% 8.63% 10.10% 11.80% 14.0% 16.8%
9/24/2019BSC Research
18
INVESTMENT THESIS

19. Top stocks pick: Utilities
• Market cap VND 9.84 trillion
• Current price VND 31,750 /share
• Room left for foreigners 0%
9/24/2019BSC Research
19
INVESTMENT THESIS
• M&E: backlog of 2018 VND 5800 bill, newly signed contract VND 2000 bill
(71% of 2019 target). This year M&E revenue is about VND 2,839 bill
(+11.7%) and VND 240 bill NPAT.
• Water: profit from this segment will contribute more as the Tan Hiep and Thu
Duc III factory finished the pipline and increase the capacity.
• Utilities: profit of hydropower plants is expected to decrease from 30% to
40% this year due to Elnino effect. Moreover, this is just the start of the new
Elnino cycle, which usually range from 5 to 7 years.
• Office for lease: New tower Etown 5 with the leasable area of 17,000 m2 has
been completed and fully occupied, however, the revenue recognition of this
tower might be delayed until next year.
REE
38,195 VND
Up +14.1%
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 8,403 9,609 11,397 14,295 15,500 17,403
Total equity (bil.) 6,338 6,683 7,721 8,693 9,928 11,183
Revenue (bil.) 2,631 2,645 3,663 4,999 5,105 5,414
NPAT (bil.) 1,099 888 1,174 1,523 1,885 1,985
EPS 3,947 3,164 3,526 4,441 5,754 6,593
BVPS 21,965 23,494 23,080 25,912 30,055 36,069
ROS 41.76% 33.57% 32.04% 30.46% 36.92% 36.70%
ROE 19.05% 13.64% 16.30% 18.55% 20.24% 17.80%
ROA 14.31% 9.86% 11.17% 11.85% 12.65% 11.40%

20. POW
Tracking
• Market cap VND 34.7 trillion
• Current price VND 14,850 /share
• Room left for foreigners 33.9%
20
INVESTMENT THESIS
Top stocks pick: Utilities
• Financial report: Revenue VND 14.9 Billion, EAT VND 1322 billion as of
24/05/2019.
• Vung Ang Thermal power plants reach 6263 mill kWh (40% of Qc of 2019).
Vung Ang currently have to operating below the designed capacity due to coal
shortage. POW has proposed the plant to import coal independently for next
year.
• Risks: (1) Ca Mau 12 might have to negotiate the PPA term in 2020 (2) EVN
re-evaluate the total investment of NT2, making the PPA price less favorable
(3) Vung Ang might not be granted the right to import coal.
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 49,180 71,283 69,732 60,583 58,103 59,980
Total equity (bil.) 17,554 26,327 26,797 27,724 26,848 30,059
Revenue (bil.) 24,357 23,231 28,212 29,710 32,663 33,075
NPAT (bil.) 2,761 2,560 1,517 2,602 2,052 2,740
EPS 1,671 996 494 1,026 1,026 1,020
BVPS 11,579 10,852 11,048 11,437 11,437 N/A
ROS 11.34% 11.02% 5.38% 8.76% 6.28% 8.28%
ROE #N/A 11.70% 5.70% 9.50% 7.50% N/A
ROA #N/A 4.30% 2.20% 4.00% 3.50% 4.60%

21. Top stocks pick: Insurance
 Divesment: SCIC and AXA will divest from BMI in end of 2019 or early of 2020 (total own
67.35%) and Estimated divestment price will be about 1.5 -2 times book value equivalent to
about 36,000 VND/share.
 Low valuation: BMI Current valuation of P/B (around 1.0 times) is relatively cheap compared
with industry average (about 1.3 times).
 Benefiting from the increase in interest rates: bank deposits accounted for over 83% of BMI’s
invested portfolio, expected 1% interest rate will help BMI’s pre-tax profit increase by about VND
20 billion (equivalent to 7% 2018 pre-tax profit)
BMI
VND 30,100
Up 21%
• Market cap VND 2,247 billion
• Current price VND 24,900 /share
• PE FW 13x, P/B 2019 0.9x,
• Room left for foreigners 9.3%
9/24/2019BSC Research
21
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Gross premium 2,822 3,102 3,396 3,693 3,623
% yoy 8.50% 9.91% 9.48% 8.75% 2.1%
Underwriting profit 35 49 101 104 81
Combined ratio 100.20% 99.52% 99.66% 96.70% 97.5%
Financial profit 91 168 175 120 142
Total Asset 5,120 5,126 5,440 5,479 6,669
Total Equity 2,307 2,171 2,128 2,242 2,293
PBT 154 223 198 201 224
EPS 1,444 1,897 1,697 1,688 1,866
BVPS 27,779 23,766 23,291 24,541 25,104
ROA 2.4% 3.6% 3.1% 3.0% 3.2%
ROE 5.6% 8.1% 7.6% 7.4% 7.9%

22. Top stocks pick: Insurance
 Divesment: PVN will divest from PVI in 2019 (PVN own 35.47% PVI). Major shareholders of
PVI are HDI-Gerling belongs to the German insurance group-Talanx want to buy back the
ownership of PVN. Based on PVI’s high position in the industry combined with Talanx
development experience, it will help PVI grow strongly after divesting.
 Benefiting from the increase in interest rates: bank deposits accounted for over 88% of PVI’s
invested portfolio, expected 1% interest rate will help PVI's pre-tax profit increase by about VND
70 billion (equivalent to 10% 2018 pre-tax profit)
PVI
VND 43,780
Up 30.5%
• Market cap VND 8,482 billion
• Current price VND 36,800 /share
• PE FW 19.1x, P/B 2019 1.1x,
• Room left for foreigners 48.8%
9/24/2019BSC Research
22
INVESTMENT THESIS
2015 2016 2017 2018 2019F
Gross premium 7,248 6,527 6,688 6,872 7,303
% yoy 21.10% -9.90% 2.50% 2.80% 6.27%
Underwriting profit 555 662 593 767 1050
Combined ratio 102.40% 96.60% 97.80% 95.40% 95.40%
Financial profit 819 656 590 473 584
Total Asset 15,495 16,643 19,627 19,648 20,849
Total Equity 6,734 6,821 6,832 7,034 7,427
PBT 708 714 683 745 1228
PAT 576 574 540 588 969
EPS 2,548 2,207 2,067 2,231 3,677
BVPS 28,750 29,120 29,170 30,050 31,727
ROA 3.70% 3.40% 2.70% 3.00% 4.65%
ROE 8.60% 8.40% 7.90% 8.40% 13.05%

23. Top stocks pick: Chemical
• Leading chemical company DGC is a chemical company in manufacturing, wholesale
industrial chemical products (yellow phosphorus, WPA, axit photphoric,..). The company
accounts for 50% volume of exported yellow phosphorus from Vietnam.
• In Q1.2019, DGC recorded disappointing business result. DGC had to conduct the
maintaince of WPA factory in one month, which resulted the dramatically decrease in WPA
export. According to data from custom, yellow phosphorus exported to Korea recorded decrease
in value.
• Low valuation PE FW is ~ 4.8x, which is the lowest valuation among chemical listed
companies. BSC comments that current valuation already reflects the negative business result in
2019.
• Catalyst: Divestment from Vinachem
• Risk: Disappointing results (valuation remains forever cheap)
DGC
VND 38,000
Up +36.2%
• Market cap VND 3.49 trillion
• Current price VND 27,900
/share
• PE FW 4.8x, P/B 2019 0.8x
• Room left for foreigners
54.7%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 1,834 2,005 886 4,744 5,385 6,675
Total equity (bil.) 1,194 1,364 666 3,181 3,638 4,521
Revenue (bil.) 2,438 2,622 625 6,062 5,619 5,924
NPAT (bil.) 390 319 128 882 658 760
EPS 5,412 2,982 2,413 7,674 5,734 6,629
BVPS 19,983 20,258 13,322 28,359 32,657 40,786
ROS 16.0% 12.2% 20.5% 14.5% 11.7% 12.8%
ROE 36.7% 25.0% 12.6% 45.8% 19.0% 18.3%
ROA 22.2% 16.6% 8.9% 31.3% 13.8% 14.6%
9/24/2019BSC Research
23
INVESTMENT THESIS

24. Top stocks pick: Tires
• High capacity: 0.3 mill. Radial, 0.78 mill. Bias. In 3Q2018, DRC consumed bias tires, Radial
tires (TBR – Truck buses radial), 2/3 of Radial are exported (main importers: Brazil 50%,
Malaysia 10%, India 5%).
• Reducing the material prices, improving the GPM. 9T2018, rubber price -21.53% yoy, synthetic
rubber -18.34% yoy (rubber accounted for 40% of COGS). However, the chemical materials
+19.61% yoy, carbon black +48.9% yoy (accounting for 25% of COGS).
• Increased radial capacity to 0.6 mil. tires/year. Depreciation expense/radial tires -30% when
new machines are fully operated. The machine in 1st phase is fully depreciated in 2020 reducing
the COGS.
• Catalyst: (1) Rubber price would remain low in 2019 and 2020 due to oversupply, (2) the oil price
is currently low, reducing the price of carbon black and chemical, (3) Vinachem fails to divest
from DRC, reducing the ownership to 36%.
• Risk: (1) Fierce competition, (2) Fluctuation in price of materials.
DRC
VND 23,623
Up 28.4%
• Market cap VND 2.174 billion
• Current price VND 18,400 /share
• PE FW 18x, P/B 2019 1.4x,
• Room left for foreigners 26.4%
9/24/2019BSC Research
24
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 3,143 2,823 2,794 2,833 2,598 2,608
Total equity (bil.) 1,673 1,606 1,527 1,525 1,537 1,562
Revenue (bil.) 3,318 3,390 3,669 3,551 3,405 3,598
NPAT (bil.) 415 420 166 141 135 160
EPS 4,234 3,252 1,132 1,068 1,020 1,212
BVPS 18,307 13,523 12,853 12,839 12,937 13,147
ROS 12.51% 12.37% 4.53% 3.97% 3.95% 4.44%
ROE 25.87% 25.59% 10.60% 9.24% 8.79% 10.32%
ROA 13.22% 14.06% 5.91% 5.01% 4.96% 6.14%

25. Top stocks pick: Fishery
• The decrease in exporting prices may reduce the gross margin in the next 3 quarters. After
maintaining at high level, selling prices in America and China have decreased due to low
demand and plummeting material prices.
• Increase exported quantity due to larger size of farm land: 250 ha in farming land are in use
in 2019. The new farm land will contribute to total quantity in 2020
• Collagen and Gelatin 2019 business plan surprised us. The increasing contribution of these
products to total profit may be the sustainable growth driver of VHC
• VHC may take advantage of EVFTA Tax on pangasius may reduce from 9% to 0% in 3 years.
In 2018, EU market accounted for 8% of total export value of VHC.
• BSC Business forecast BSC forecasts revenue will be VND 9,036 bil. (-3% yoy) and net
income will be VND 1,240 bil. (-14.6% yoy). EPS FW 2019 is 13,377 VND/share
• Risks: (1) Selling price may decrease due to expanding supply
VHC
VND 102,000
Up +18.6%
• Market cap VND 8.1 trillion
• Current price VND 86,000
/share
• PE FW 6.4x, P/B 2019 1.7x,
• Room left for foreigners
65.2% 2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 4,357 4,451 5,043 6,299 6,981 7,907
Total equity (bil.) 2,089 2,393 2,943 4,024 4,751 5,608
Revenue (bil.) 6,493 7,303 8,151 9,323 9,036 10,358
NPAT (bil.) 321 565 605 1,452 1,240 1,327
EPS 3,274 5,707 6,551 15,585 13,377 14,322
BVPS 22,477 25,833 31,844 43,549 51,383 60,609
ROS 4.9% 7.7% 7.4% 15.6% 13.7% 12.8%
ROE 16.1% 25.2% 22.7% 41.7% 28.3% 25.6%
ROA 7.3% 12.8% 12.7% 25.6% 18.9% 18.6%
9/24/2019BSC Research
25
INVESTMENT THESIS

26. Top stocks pick: Textile
• The 4th largest listed garment firm in terms of revenue. Capacity is expected to increase by
20% after Song Hong 10 operating (2020F).
• A surge in orders from new clients (Haddad - forecasted to +38% YoY & Luenthai) and the
moving trend of textile & apparel production out of China.
• Higher gross margin (20.8% in Q1/2019 vs. 17.6% in Q1/2018) thanks to an increasing portion
of FOB in revenue, but we do not expect a surge in the margin in the 3 remaining quarters.
• High profitability, strong financial situation, high dividend (35-40%/par value)
• Risks: order growth slowing down, labor relating problems (source, expense..)
MSH
61,500 VND
Up +6.0%
• Market cap VND 3,000 billion
• Current price VND
58,000/share
• PE FW 7.1x, P/B 2019 2.2x,
• Room left for foreigners
42.21%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 1,937 2,192 2,381 2,521 2,713 3,208
Total equity (bil.) 622 653 755 934 1,356 1,640
Revenue (bil.) 2,548 2,992 3,282 3,951 4,472 5,136
NPAT (bil.) 160 185 200 370 420 483
EPS 9,880 8,153 8,656 7,341 8,170 9,175
BVPS 27,362 28,743 31,588 19,338 26,961 32,729
ROS 6% 6% 6% 9% 9% 9%
ROE 28% 29% 28% 44% 37% 32%
ROA 9% 9% 9% 15% 16% 16%
9/24/2019BSC Research
26
INVESTMENT THESIS

27. Top stocks pick: Textile
• Strong customer base (Decathlon – 40%, TCP– 22%, Haddad – 7%), CAGR of order value in
2016-2018 above 30%. Estimated revenue in 1H2019 = VND 2,200 billion (+48% YoY).
• Expansion projects to meet order surge: Dong Hy (+21-26 lines, ~+9-11% capacity) in 2019,
Vo Nhai (+32-36 lines) in 2019-2020.
• Over 50% revenue export to EU market – may be favored by EVFTA if meet ROOs
• Restructure in 2019: Separate non-core activities such as real estate and industrial parks and
fashion segments from garment export.
• Risks: high debt ratio, negative CFO; increasing labor cost; lower than expected order growth;
dilution risk from convertible bonds (2020).
TNG
VND 21,000
Up +6.6%
• Market cap VND 1,342 billion
• Current price VND 19,700/share
• PE FW 5.6x, P/B 2019 1.32x,
• Room left for foreigners 28.29% 2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 1,613.6 1,846.2 2,225.7 2,581.2 3,305.5 3,707.9
Total equity (bil.) 428.1 521.1 629.3 794.5 1,042.3 1,224.0
Revenue (bil.) 1,923.9 1,887.8 2,488.6 3,612.9 4,366.4 4,931.0
NPAT (bil.) 71.3 81.2 115.0 180.7 231.5 203.7
EPS 2,985.1 1,951.8 2,796.9 3,662.9 3,491.9 2,565.1
BVPS 13,183 14,895 15,028 15,669 14,969 14,835
ROS 3.71% 4.30% 4.62% 5.00% 5.30% 4.13%
ROE 20.66% 17.10% 19.99% 25.39% 25.21% 17.97%
ROA 5.07% 4.69% 5.65% 7.52% 7.87% 5.81%
9/24/2019BSC Research
27
INVESTMENT THESIS

28. Top stocks pick: Others
• Growth by new quarries. PTB is the leading granite company (providing m2 5.3million /m2
16million of 2017 demand), has the largest mining capacity in Binh Dinh with 11 quarries. In the
year 2019 increasing by m3 300,000 black stone/year with a high price (600 – 700K / m2). In
FY2019, rock sales are projected to increase by 5.9% YoY, at VND 1,552 billion, the gross profit
margin is 32% (BSC research).
• The wood segment is favored from trade war. The capacity of Phu Cat factory increases to
5,000 m3 of wood furniture, signing orders with Wall Mart and Carrefour guarantees output. In
2019, BSC forecast that wood segment will increase by 23.4% YoY in 2019, gross profit margin
will reach 18% after Phu Cat plant runs at full capacity.
• Catalyst: (1) Growth of paving stone demand + 20% yoy in 2018-2023, (2) Export growth in
Vietnam + 10% yoy in 2019.
• Investment risks: (1) labor price fluctuation and labor, (2) export market risk in Turkey (12%), (3)
risk of PTB’s real estate project in Binh Dinh.
PTB
VND 81,000
Up 19.5%
• Market cap VND 3,197 billion
• Current price VND 67,600 /share
• PE FW 7.8x, P/B 2019 1.45x,
• Room left for foreigners 30.1%
9/24/2019BSC Research
28
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 1,241 1,811 2,581 3,406 3,582 4,088
Total equity (bil.) 517 796 1,096 1,661 1,740 2,180
Revenue (bil.) 3,046 3,662 3,971 4,722 5,395 5,614
NPAT (bil.) 183 278 361 400 498 606
EPS 11,203 10,464 11,745 6,987 8,703 10,595
BVPS 35,935 36,863 42,302 34,167 46,625 48,663
ROS 6.02% 7.60% 9.09% 8.46% 9.22% 10.79%
ROE 39.76% 40.32% 36.41% 27.88% 28.15% 29.73%
ROA 22.06% 27.51% 27.28% 22.12% 20.99% 20.44%

29. • Business results declined in Q1/2019. Rev = 423.5 bil. (+15.5% YoY), GP = 99.9 bil. (-8.3%
YoY) as GPM reached 23.5% lower than Q1/18 (29.46%), due to long Tet holiday which made
good stuck in port, so storage, transport cost increase significantly. Higher fuel and electricity
prices also made GPM decrease. NPAT = 40.3 bil. (-36.76% YoY).
• VSC plan Rev and NPAT 2019 equal to 1,500 bil. and 306 bil. conservatively with 1.1 million
TEUs of container will be transported and 680,000 TEUs throughput depot.
• The cargo throughput of Hai Phong port is expected to increase by 8-12% in 2019 thanks
to (1) Vietnam's import and export increased thanks to the trade agreements EVFTA, CPTPP,
etc. (2) US- China trade war is increasing maritime routes to Southeast Asia.
• Catalyst: EVFTA, The trend of goods movement from China to Vietnam and export to US.
• Risks: Fierce competition in Hai Phong area.
VSC
VND 34,600
Up +8.8%
• Market cap VND 1.8 trillion
• Current price VND 31,800 /share
• PE FW 7x, P/B FW 0.9x,
• Room left for foreigners 7.2%
9/24/2019BSC Research
29
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 2,224 2,397 2,479 2,489 2,584 2,767
Total equity (bil.) 1,431 1,515 1,710 1,945 2,071 2,235
Revenue (bil.) 928 1,082 1,303 1,694 1,696 1,709
NPAT (bil.) 277 262 264 354 329.4 347.4
EPS 5,476 4,119 3,874 4,905 4,561 4,810
BVPS 30,826 27,493 31,013 35,277 37,565 40,557
ROS 29.8% 24.2% 20.2% 20.9% 19.4% 20.3%
ROE 22.4% 17.1% 14.7% 16.4% 13.9% 13.7%
ROA 15.0% 10.9% 9.7% 12.1% 11.0% 11.0%
Top stocks pick: Seaport

30. Top stocks pick: Seaport
• GMD`s business results reflect from restructuring in Q1/19. Rev = 628.9 bil. (-8.7% YoY) ,
GP = 249.94 bil. (+21.7%) as GPM increased by 39.74% thanks to restructuring to 80% of port
operation. NPAT reached 146.2 bil. (-88.5% YoY) due to 1,500 bil from associate divertment.
Excluding non-recurring profit , core NPAT increased by 13%.
• Gemalink is currently restarting and is expected to be completed in Q2/2020. Gemalink is
one of the key projects of GMD in Cai Mep - Thi Vai area with a total output of 1.5 million TEUs
with a total investment value of USD 300 million.
• Nam Dinh Vu Port expects to exceed the plan of 300,000 TEUs in 2019F thanks to an
additional new vessel in April 2019.
• Catalyst: (1) China-US trade war (2) EVFTA 2019 (3) The trend of goods movement from China
to Vietnam and export to US.
• Risks: Fierce competition in Hai Phong area.
GMD
VND 28,970
Up +11.6%
• Market cap VND 7.6 trillion
• Current price VND 25,950 /share
• PE FW 14.1x, P/B FW 1.1x,
• Room left for foreigners 0%
9/24/2019BSC Research
30
INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 8,999 10,118 11,291 9,984 10,549 10,509
Total equity (bil.) 5,614 5,867 7,095 6,529 6,643 6634
Revenue (bil.) 3,586 3,742 3,984 2,708 2,971.5 3,218.8
NPAT (bil.) 461 444 581 1,900 639 498.7
EPS 3,271 2,009 1,962 6,207 1,960 1,531
BVPS 46,935 32,695 24,610 21,989 22,402 22,972
ROS 12.85% 11.86% 14.59% 70.18% 21.5% 15.5%
ROE 7.67% 6.79% 7.84% 27.13% 8.7% 6.7%
ROA 4.68% 4.08% 4.74% 17.37% 5.6% 4.2%

31. Top stocks pick: Natural Rubber
• Rubber’s price recovered slightly at VND 33-34 million/ton and rubber wood selling price
is VND 200 million/ha. Accordingly, we make forecasts based on: (1) Liquidation of rubber trees
with estimated revenue approximately VND 350-390 billion (excluding internal wood revenue of
30%), expected gross profit margin is 90%.
• Divestment from NTC: PHR owns 32.85% of NTC shares, equivalent to 5.256 million shares
and will divest NTC in 2019, recording financial income of VND 546 billion with NTC share
• Land handover to NTC and VSIP: The Government has approved the project of expanding
Nam Tan Uyen 3 area, NTC will start receiving land handover from PHR in 2019 with partial
handover method with expected compensation price of VND 1.3 billion/ha (+30% compared to
the expected price of 2018). Conservatively, we assume PHR will hand over 150 ha of land
(NTC - 55ha, VSIP - 95ha) in 2019, recording an other income with amount of 190-200 billion.
• Risks: Price fluctuations of rubber and wood prices and risk of delaying land transfer progress in
Nam Tan Uyen Industrial Park.
PHR
VND 57,940
Up +0.9%
• Market cap bill. 7,845 VND -
Current price VND 57,400/share
• P/E FW 5.85x – P/B 2.6x
• Room left for foreigners 41.27%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 3,300 3,860 4,295 5,087 5,248 5,179
Total equity (bil.) 2,193 2,296 2,411 2,677 2,478 2,361
Revenue (bil.) 1,229 1,179 1,654 1,561 1,486 1,469
NPAT (bil.) 215 223 330 638 511 587
EPS 2,697 2,804 4,147 4,597 3,569 5,514
BVPS 16,186 16,942 17,795 19,755 18,292 17,431
ROS 14% 13% 17% 16% 17% 16%
ROE 10% 10% 14% 24% 20% 24.8%
ROA 7% 6% 8% 13% 9% 11.3%
9/24/2019BSC Research
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INVESTMENT THESIS

32. Top stocks pick: Real Estate
• Positive Industrial Park leasing in 1H2019: Quang Chau 30ha, Tan Phu Trung 20ha, Trang
Due + que vo 10ha, total IP leasing is 60ha, account 54.5% the plan. KBC plans to lease 110ha
equivalent to VND 1,500 billion, Quang Chau IP is expected to build 7 factories (5000 m2 / unit).
Leased area will be about 110ha (+ 30ha compared to the plan) mainly coming from Nam Son
Hap Linh and Quang Chau, Tan Phu Trung, recording revenue from the estimated segments: IP
of VND 1,630 billion (-19% yoy).
• Recognition Phuc Ninh Urban Area’s revenue: The signed contract in 2018 will hand over in
2019, estimated at VND 1,400 billion with selling price of VND 18-20 million / ha, COGS is 4- 5
million / ha corresponding to 70% gross margin.
• Deploying to sell Trang Due urban area: will open for sale in 2019, with a commercial area of
20ha / 42ha, selling price of 15-20 million/m2, Gross margin of 70%.
• Risks: Approving for new projects is delayed, affecting the land fund in the future
KBC
VND 18,195
Up +26.3%
• Market cap VND 7,210.8 bil -
Current price VND
14,400/share – PE FW 6.79x,
P/B 2019 fwd 1.71x
• Room left for foreigners 26.7% 2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 13,653 14,657 15,779 16,972 18,639 18,728
Total equity (bil.) 8,036 8,621 9,038 9,838 10,380 10,501
Revenue (bil.) 1,434 1,972 1,260 2,505 3,581 3,535
NPAT (bil.) 602 711 618 810 1,108 1,241
EPS 1,320 1,190 1,240 1,724 2,133 2,390
BVPS 16,890 18,120 19,000 19,850 22,097 22,354
ROS 29.1% 42.0% 36.1% 49.0% 30.9% 35.1%
ROE 7.5% 8.2% 6.8% 7.5% 10.7% 11.8%
ROA 4.4% 4.9% 3.9% 4.3% 5.9% 6.6%
9/24/2019BSC Research
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INVESTMENT THESIS

33. Top stocks pick: Real Estate
• Factory built in Long Hau Industrial Park always maintains a large occupancy rate of over
96%. In addition, the accommodation area also has a large rental rate of about 98% on average
for exploited blocks. In 2019, LHG will deploy leasing 30,000 m2 of factory, rental price will be
maintained at 5 USD / m2 / month
• Da Nang High-Tech Park with a scale of 29.6ha. LH3 will deploy 10,000 m2 factories expected
to be handed over at the end of Quarter II/2019 with a rent price of 5 USD/m2/month. We
estimate Revenue 2019 from Da Nang IP will contribute VND 6 billion and The project has
signed an agreement of 60% of the area.
• Long Hau Industrial Park 3 (LH3) Phase 1 with a commercial area of 90ha/124ha. In the first
quarter of 2019, LHG signed a 10ha contract with Cobi Group. LH3 will lease about 20-30
hectares per year, the project will be filled in the first 4 years from 2019 and (2) LH3 rental price
ranges from 110-130 USD / m2 (excluding VAT). However, the COGS of LH3 Industrial Park will
increase due to increase in compensation, making the profit margin decline by 4-5% yoy.
LHG
VND 23,389
Up +19.1%
• Market cap VND 1,046 billion
• Current price 19,250 VND/share -
PE FW 5.21x
• Room left for foreigners 42.92 %
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 12.532 1,476 1,379 1,527 1,916 1,946
Total equity (bil.) 4,050 639 684 670 1,305 1,327
Revenue (bil.) 232 480 488 430 487 662
NPAT (bil.) 70 165 166 175 146 211
EPS 1,392 3,309 3,315 3,616 3,774 4,214
BVPS 13,677 13,400 21,822 22,935 26,090 26,530
ROS 7.9% 23.3% 27.2% 20.2% 29.8% 31.8%
ROE 0.6% 1.7% 25.9% 24.2% 14.5% 15.9%
ROA 0.2% 0.6% 11.2% 12.0% 9.8% 10.8%9/24/2019BSC Research
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INVESTMENT THESIS

34. Top stocks pick: Real Estate
• Transparent corporate governance framework and the largest listed land bank owner.
Total land bank of NLG (on-going) is 539.3ha (355.1 ha of that at HCM). The new land bank as
170ha of WaterFront, 45ha of Đại Phước project and 21ha of Vssip (Hai Phong) will be a key
driver for NLG’s growth in next few years. Moreover, NLG also has robust balance sheet and
attractive valuation.
• Strong sales plan (pre-sales) in 2019 is a key factor to ensure profitability in the period of
2019-2021. In 2019, NLG plans to open 3 projects (total rev of USD1.2 bn) including (1) Hai
Phong Vsip project, (2) Waterpoint Phase 1 - South Gate (3) Akari City (expected total revenue
of 436 million USD) and (4) Mizuki Park project - Next phase. Total volume of products sold in
2019 is expected to reach 3,433 products (+108% YoY) , equivalent to the expected revenue of
VND 6,019 billion. The Akari project – Phase 1 and Waterpoint phase 1 will be ready to be
soft launched in July 2019.
• Business plan 2019 : The revenue and NPAT of parent company’s NLG plan in 2019 are VND
3,485 billion and VND 955.8 billion (+ 25.2% yoy) respectively. NLG will pay dividend by 10%
cash and 10% share in 2019.
NLG
VND 40,500
Up +40.6%
• Market cap VND 6,887 billion
• Current price VND 28,800 /share
• PE FW 7.5x, P/B 2019 1.2x,
• Room left for foreigners 0%
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 3,996 5,022 6,209 7,906 9,574 10,417
Total equity (bil.) 1,934 2,218 2,443 2,880 4,600 5,556
Revenue (bil.) 867 1,259 2,534 3,161 3,480 3,298
NPAT (bil.) 95 206 345 535 763 956
EPS 677 1,384 2,308 3,233 3,033 3,796
BVPS 14,434 15,667 17,192 18,315 19,237 23,233
ROE 5% 9% 14% 19% 17% 17%
ROA 2% 4% 6% 7% 8% 9%
9/24/2019BSC Research
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INVESTMENT THESIS

35. Top stocks pick: Real Estate
• Vinhome projects play a key role in the growth of VHM’s earning in next period. In
current, VHM are implementing 3 VinCity Project from 2018-2022 as Vinhome Ocean
Park (44,000 high-rise units and 2,400 low-rise units), Vinhome Sportia (45,000 units -
281ha) and Vinhome Grand Park (43,500 units - 272 ha)
• 1Q2019 pre-sales recognized ~ VND10.0bn with 5,332 units that will help maintain the
growth in VHM’s earning in 2H2019 thanks to the booking of low-rise units – wholesales
(Ocean Park and Sportia), Vinhome Metropolis, Vinhome GreenBay, Vinhome Imperia.
• 2019 pre-sales’s target will reached USD 5.5bn with 60,000 units which mainly come
from the Vincity Project (Vincity District 9, Vincity Sportia and Vincity Ocean Park. The
successful of Vincity Ocean Park’s pre-sales reinforce the absorption rate of Vincity
Project
• The Vinhome Grand Park– Rainbow will be ready to be soft launched in July 2019
with 10,000 units in phase 1.
• Unrivalled land bank ensure for developing and implementing project in next 15 years.
VHM
VND 95,600
Up +23.3%
• Market cap VND 259 trillion
• Current price VND 77,500 /share
• PE FW 17.3x, P/B 2019 4.9x,
• Room left for foreigners 33.9%
2015 2016 2017 2018 2019F
Total assets (bil.) 47,476 65,193 51,304 119,688 178,934
Total equity (bil.) N/A N/A 10,124 48,144 55,428
Revenue (bil.) 12,940 21,705 46,798 38,664 80,063
NPAT (bil.) 776 6,512 9,360 14,776 18,412
EPS 235 1,973 2,836 4,873 5,515
BVPS N/A N/A 34,521 13,670 15,587
ROE N/A N/A N/A 46.7% 34.7%
ROA N/A N/A N/A 13.1% 10.3%
9/24/2019BSC Research
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INVESTMENT THESIS

36. Top stocks pick: Real Estate
• 2019 revenue and profit is guaranteed by the Centrosa project. In 2H2019, We expect that
HDG will record revenue from Jasmine – Iris Tower (Centrosal project) and total estimated
revenue is about VND 4,000 billion.
• The delay on launching Hado Charm Villas – An Khanh An Thương to Q3/2019 due to
implementation of utility service.
• Land bank is still large. It is expected that HDG will be able to record around VND10,000 billion
in revenue from these projects: NongTha Project, Dragon City,…
• New projects from M&A (Dich Vong projects, Thủ Đức project, 187 Giang Vo project,…)
continue to increase their land bank.
• Hydropower is expected to grow sharply from 2019-2020 thanks to contributions from three
new plants (total capacity around 205 MW). solar power goes into operation in May and
contributed to profit from 3rd quarter.
• Risks: If the market is not favorable, HDG can delay the implementation of the upcoming
projects because of revenue is guaranteed from Centrosa project
HDG
VND 43,500
Up +35.1%
• Market cap VND 3,820 billion
• Current price VND 32,200 /share
• PE FW 5.9x, P/B 2019 1.4x,
• Room left for foreigners 33.2%
2015 2016 2017 2018 2019F
Total assets (bil.) 3,055 6,700 8,427 10,632 12,264
Total equity (bil.) 1,307 1,834 2,089 2,339 2,745
Revenue (bil.) 1,480 1,988 2,268 4,298 5,543
NPAT (bil.) 139 252 284 519 689
EPS 1,321 2,318 1,954 4,395 5,440
BVPS 11,835 5,752 10,950 18,478 21,910
ROS 9.4% 12.7% 12.5% 12.1% 12.4%
ROE 10.7% 13.7% 13.6% 22.2% 25.1%
ROA 4.6% 3.8% 3.4% 4.9% 5.6%9/24/2019BSC Research
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INVESTMENT THESIS

37. PC1
VND 26,640
Up +40.2%
• Market cap VND 3.035 trillion
• Current price VND 19,050 /share
• PE FW 2020 3.9x
• Room left for foreigners 10.49%
9/24/2019BSC Research
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INVESTMENT THESIS
Top stocks pick: Electricity construction
• Electrical construction: rapid top line growth thanks to the huge backlog of
2018 and newly signed contracts and enhanced gross margin thanks to lower
percentage of EVN contract
• Net income forecasted in 2020 increased strongly due to (1) increase in gross
margin of electrical construction, (2) two new hydro power plants Bao Lac B
(Q4 2019) and Mong An (Q1 2020) will be put into operation and (3) PCC1
Thanh Xuan revenue
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 2,078 3,263 4,530 6,213 6,657 N/A
Total equity (bil.) 864 1,370 2,063 2,815 3,273 N/A
Revenue (bil.) 3,100 3,101 3,008 3,161 5,085 5,660
NPAT (bil.) 425 246 305 257 486 471
EPS 21,064 7,184 3,799 2,050 3,050 2,960
BVPS 42,977 38,056 26,017 23,249 23,494 N/A
ROS 13.70% 7.92% 10.13% 8.13% 9.57% 8.32%
ROE 64.05% 21.99% 17.75% 10.54% 15.98% N/A
ROA 20.23% 9.20% 7.82% 4.78% 7.56% N/A

38. HPG
VND 19,900
Down -13.9%
• Market cap VND 63.7 trillion
• Current price VND 23,100 /share
• PE 2019 FW 11.56,
• Room left for foreigner 7.32%
9/24/2019BSC Research
38
INVESTMENT THESIS
Top stocks pick: Steel manufacturer
• Steel market: first 5M 2019, construction steel volume reached 1.15 mill mt
(+22.3% YoY), steel pipe volume reached 291 thousand tons (12.3%). Market
share of construction steel and steel pipe are 35.8% and 29.9% respectively.
• Hoa Phat Dung Quat steel complex (DQSC) phase 1 was delayed until the
beginning of July.
• Price setting policy: HPG intend to maintain the current construction steel
price to boost volume to reach 3.2 mill tons
• Risks: (1) The anti-dumping duty applied to construction steel from China will
expire in 2020 (2) delay of residence real estate in the South and infrastructure
investment (3) iron ore price may maintain the current high ground for several
years.
2015 2016 2017 2018 2019F
Total assets (bil.) 22,089 25,507 33,227 53,022 N/A
Total equity (bil.) 11,796 14,467 19,850 32,398 N/A
Revenue (bil.) 25,852 27,865 33,885 46,855 67,967
NPAT (bil.) 3,250 3,504 6,606 8,015 5,467
EPS 6,525 4,755 7,833 5,278 1,980
BVPS 24,478 19,706 23,425 21,282 N/A
ROS 12.57% 12.58% 19.50% 17.11% 8.4%
ROE 17.00% 117.00% 217.00% 317.00% N/A
ROA 14.39% 14.73% 22.50% 18.59% N/A

39. • Q1/2019 Business results reflect the difficult of construction. Rev reached 4,249 bil. (-1.4%
YoY) and GP reached 273.3 bil. (-4.3% YoY) as GPM was 6.4% decreased by 0.2% YoY (GPM
Q1/18 = 6.6%). 188.8 bil. (-34.95% YoY) of NPAT can show tough year for CTD of which:
• GPM will decreased by 6.4% due to low GPM of Vincity`s construction contract attribute large
proportion.
• New contracts and backlog in 2019 estimate to decrease by 29,221 bil. (-5% YoY) and
27,071.4 bil. (+8% YoY) due to failure of M&A with Ricons which make CTD hard to sign new
contracts cause of limited capacity.
• 13 over 40 projects had to delay or pause in 2019. Some of large projects came from Vincity.
• CTD plans in 2019 which Rev will be 27,000 bil. (-5.4% YoY) and NPAT reachs 1,300 bil. (-14%
YoY) equivalent to EPS FW = 15,800 VND/share, P/E FW = 6.5x.
• Risks: (1) Difficult in residential construction; (2) Gross margin will decrease because of large
propotion of Vincity construction.
CTD
VND 108,900
Up +6.7%
• Market cap VND 9.14 trillion
• Current price VND 102,100 /share
• PE FW 6.5x, P/B FW 0.9x,
• Room left for foreigners 2.6%
9/24/2019BSC Research
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INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 7,815 11,741 15,877 16,823 17,232 17,523
Total equity (bil.) 3,243 6,234 7,307 7,962 8,700 9,146
Revenue (bil.) 13,669 20,783 27,153 28,561 27,149 27,110
NPAT (bil.) 732,803 1,422 1,653 1,501 1,280 1,267
EPS 14,770 20,669 20,436 18,357 15,557 15,405
BVPS 69,298 80,904 95,469 101,469 113,675 116,337
ROS 5.4% 6.8% 6.1% 5.29% 4.7% 4.7
ROE 25.4% 30% 24.4% 19.8% 15.4% 13.8%
ROA 11.6% 14.5% 12% 9.2% 7.5% 7.1%
Top stocks pick: Construction

40. Top stocks pick: Construction
• NPAT of HBC went down in Q1/2019. Rev = 3,708 bil. (+10.8% YoY), GP reached 340.5 bil. (-
7.4% YoY) with GPM as 9.2% decreased by -1.79% YoY (GPM Q1/2018 equaled to 10.99%).
NPAT reached 120.9 bil. (-10.84% YoY).
• Rev and NPAT target in 2019 equal to 17,191 bil. (-6% YoY) and 525.6 bil. (-16.5% YoY)
respectively. REV will come from 16,988 bil. of construction (-6.3%) and 120 bil. of real estate.
New contracts and backlog value in 2019F is estimated by 16,804 bil. (-35% YoY) and 24,052
bil. (-0.8% yoy) respectively.
• Restructuring cash flow from issuing shares for strategic investor Hyundai Elevator. HBC
estimates Equity will increase by 575 bil. so they can leverage nearly 1,000 short-term debt to
maintain WACC.
• Continue to difficult year for HBC. Prospect of HBC 2019 will continue to difficult due to (1)
Customer Short-term A/R increase (2) Financial cost increased by large leveraged debt (3)
Construction has been affected badly cause of real estate restriction.
• Risks: (1) Decreasing New Constract; (2) Increasing Short-term A/R; (3) High Leveraged debt.
HBC
VND 16,000
Up +4.9%
• Market cap VND 3.1 trillion
• Current price VND 15,250 /share
• PE FW 6.5x, P/B FW 1.2x,
• Room left for foreigners 15.1%
9/24/2019BSC Research
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INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 7,291.3 11,449.8 13,998.4 16,846 14,203 14,601
Total equity (bil.) 1,073 1,617 2,249 3,051 3,334 3,703
Revenue (bil.) 5,132.8 10,787.6 16,048.4 18,299 17,191 17,454
NPAT (bil.) 68.7 567.0 859.0 620 525.6 528.2
EPS 906 5,912 6,572 2,875 2,667 2,681
BVPS 14,202 16,937 17,316 14,907 17,006 18,886
ROS 1% 5% 5% 3.39% 3.5% 3.7%
ROE 6% 35% 38% 23.37% 16.7% 15%
ROA 1% 5% 6% 4.21% 3.1% 3%

41. Top stocks pick: Oil&Gas
• In our base-case scenario, Brent averages at 68 USD/bbl in 2019.
• Removal of take – or – pay price will support the GAS’s gross margin. From March 20,
the Ministry of Industry & Trade set one price (46% MFO) for all power plants. Previously,
there were two price under ToP price (with a lower price) and above ToP price.
• Wild Orchid gas field was exploited in the end of 2018: The oil reserve of its gas field is
3 billion cubic meters. We expected that Wild Orchid gas field will help the volume of block
6.1 in 2019 to increased by 20%.
• Nam Côn Sơn 2 – Phase 2 will help to boost volume of GAS from 2021. The pipeline’s
feasibility study has been approved with its capacity of transporting 7bil m3/year. GAS
anticipated that its pipeline will contribute to Gas’s earning in early 2021. We expected that
Sao Vang Dai Nguyet will be launched in the late of 2020.
• Long-term Project as LNG Thị Vai is the new segment boosting the growth of GAS in next
few year due to the shortage gas from 2023
GAS
VND 118,000
Up +14.0%
• Market cap VND 187.5 trillion
• Current price VND 103,500 /share
• PE FW 16.1x, P/B 2019 3.8x,
• Room left for foreigners 45.8%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 56,715 56,754 61,889 60,658 68,806 56,715
Total equity (bil.) 41,062 39,114 41,490 47,972 56,212 41,062
Revenue (bil.) 64,300 59,076 64,522 77,523 79,922 88,120
NPAT (bil.) 8,531.7 7,019.8 9,685.7 11,199 12,916 14,298
EPS 4,502 3,668 5,061 5,852 6,748 7,470
BVPS 21,668 20,436 21,678 24,529 28,277 32,748
ROS 16.6% 14.3% 18.0% 16.7% 19.0% 18.6%
ROE 21% 18% 23% 24% 24% 23%
ROA 15% 12% 16% 19% 19% 19%
9/24/2019BSC Research
41
INVESTMENT THESIS

42. Top stocks pick: Oil&Gas
• M&C segment recovers thanks to the faster progress at Sao Vang Dai Nguyet project
(USD500mn) and the USD 320mn of Gallaf project ’s value (onshore project). Some major
onshore projects will implement from 2020 as Lô B Ô Môn (2020-2024), Sư Tử Trắng (2020-
2024) and Nam Côn Sơn – Phase 2 (2020). We expected that total M&C backlog of PVS
reached nearly USD 2.1bn.
• Dissolved 2D&3D ships (Exploration activities) in 2018. PVS recognized the loss of VND 376
Bil in 2018. We supposed that its dissolution of its 2D&3D ships will help PVS’s margin to
improve in 2019.
• The new FSO contract for SVĐN Project will support 2021-2022 earning. The value of its
contracts is valued at USD 176mn.
• Catalyst: (1) Dissolving 2D&3D, (2) The new FSO contract for SVĐN project, (3) The recovery
of M&C Segment thanks to a huge project as SVĐN and Gallaf projects.
• Risk: (1) A decrease in oil price, (3) Other huge project as Lô B Ô Môn , Cá Rồng Đỏ and Cá Voi
Xanh were delayed
PVS
VND 25,900
Up +13.6%
• Market cap VND 10,897 billion
• Current price VND 22,800 /share
• PE FW 11.3x, P/B 2019 0.9x,
• Room left for foreigners 24.0%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 24,941 24,182 21,766 20,589 21,262 23,032
Total equity (bil.) 10,251 10,322 10,745 11,322 11,890 12,472
Revenue (bil.) 23,357 18,682 16,812 14,667 14,740 16,508
NPAT (bil.) 1,517 1,039 800 1,023 1,094 1,108
EPS 3,397 2,325 1,792 1,883 2,014 2,040
BVPS 22,949 23,107 24,054 23,687 24,876 26,093
ROS 5.1% 0.8% 0.0% 2.1% 2.5% 2.1%
ROE 15% 10% 7% 9% 9% 9%
ROA 6% 4% 4% 5% 5% 5%9/24/2019BSC Research
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INVESTMENT THESIS

43. Top stocks pick: Oil&GAS
• Utilization rate expected to improve significantly from 85% in 2018 to 94% in 2018; we
forecast that the utilization rate in 2020 will increase to 98% thanks to (1) the recovery of oil
price and (2) Almost the signed contract of PVD in 2020 has a long-term duration.
• The improvement of jack-up day rate. The average jack-up day rate in 2018 was USD
USD 58,000. We expect that its rate will be recovered in 2019 to ~ USD 60,000.
Furthermore, PVD’s management expect that the day-rate in 2020 will be surged by 10%.
The collection of bad debts and depreciation policy change will support PVD’s
earning in 2019. (1) PVD will change the useful life for depreciation of Jack-up rigs PVD II,
III and VI from 20 years to 35 years, (2) We expect that PVD will collect the rest of its debt
in 2019 (around VND200 bil) and Q1/2020.
• In 2019, PVD expect to book VND 90 billion of provision for PVPEP.
• Catalyst: (1) The collection of bad debts, (2) The change in depreciation policy, (3) The
recovery of jack-up day rate and the improvement of utilization rate.
PVD
VND 22,000
Up +18.3%
• Market cap VND 7,121 billion
• Current price VND 18,600 /share
• PE FW 19.3x, P/B 2019 0.5x,
• Room left for foreigners 27.75%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 24,915 23,143 21,817 21,002 20,968 21,588
Total equity (bil.) 13,000 13,206 13,208 13,583 13,933 14,343
Revenue (bil.) 14,444 5,360 3,891 5,503 5,370 5,971
NPAT (bil.) 1,402 15 45 188 350 346
EPS 4,022 39 118 490 912 903
BVPS 37,306 34,457 34,463 35,440 36,352 37,255
ROS 15% 3% -10% 2% 5% 6%
ROE 11% 0% 0% 1% 3% 2%
ROA 6% 0% 0% 1% 2% 2%9/24/2019BSC Research
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INVESTMENT THESIS

44. Top stocks pick: Oil-Transport
• Positive prospect of business results in Q1/19. Rev reached 1,862.5 bil. (+4.5% YoY), NPAT
reached 175 bil. (+16.8% YoY) thanks to fleet expansion and well-controlled cost. PVT plans
5,500 bil. for rev and 400 bil. for NPAT conservatively.
• Improved GM: PVT`s GM Q1/19 reached 14.7% increased by 1.7% YoY thanks to new shipping
running made reduce ship rent cost so core transport`s GM improve by 16.5%.
• Nghi Son refinery plant has a 50-day maintenance period from 5/2019. Q3/19 NSR will
complete the maintenance, so the oil transport contract with PVT will be affected and also the
long-term contract of transporting crude oil and finished products.
• Investment in rejuvenating fleets: PVT will invest 12 new ships in 2019 with a total investment
value of 855.5 bil. to rejuvenate the fleet and expand shipping capacity.
• Catalyst: PVT signs a long-term contract with NSR after the Q3/19 maintenance.
• Risk: Large USD long-term debt and exchange rate risks.
PVT
VND 19,320
Up +19.3%
• Market cap VND 4.5 trillion
• Current price VND 16,200 /share
• PE FW 7.8x, P/B FW 0.8x,
• Room left for foreigners 16.87%
9/24/2019BSC Research
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INVESTMENT THESIS
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 9,656 9,070 9,203 10,202 10,874 11,404
Total equity (bil.) 3,397 3,573 4,645 5,139 5,483 5,903
Revenue (bil.) 5,761 6,734 6,129 7,523 8,158 8,905
NPAT (bil.) 433 483 534 780 793.5 890.8
EPS 1,315 1,321 1,436 2,183 2,220 2,493
BVPS 16,906 15,397 16,564 18,262 19,482 20,974
ROS 8% 8% 8.7% 8.7% 8.1% 8.4%
ROE 13% 13% 13% 13.3% 12.5% 13.1%
ROA 4% 5% 4.9% 6.7% 6.3% 6.7%

45. Top stocks pick: Automobile
• Honda motorcycle segment transforming scooters to digital cars, increasing average
selling prices, currently cars 60% of vehicles, 35% of vehicles and 5% of spot cars
• Toyota and Ford have solved Decree 116, ensuring the amount of vehicles imported to meet
supply 2018 and increasing car demand in Vietnam (thanks to 0% import taxes from Asian).
• High dividend payout ratio. VEA paid 39% dividend in 2019 and probably pay 100% dividend
in cash 2019.
• Catalyst: Divestment from Ministry of Industry and Trade (MOIT), reducing the ownership to
36%. (currently hold 88.47% of VEA).
• Risks: Circular 116 which create the barrier of imported cars parts and requirement about euro
4 standard lead to difficult to operating core business
VEA
VND 61,446
Up +5.9%
• Market cap bill. 51,025 VND -
Current price VND 59,200/share
• P/E FW 7.8.x – P/B 2.6x
• Room left for foreigners 43.43%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 17,073 20,376 23,361 23,445 27,321 28,475
Total equity (bil.) 15,251 13,310 18,575 19,497 24,815 25,328
Revenue (bil.) 5,893 6,307 6,563 7,047 7,424 7,467
NPAT (bil.) 4,370 4,492 5,086 7,078 8,014 8,426
EPS N/A N/A 3,415 4,898 6,059 6,314
BVPS N/A N/A 13,979 14,673 36,176 37,872
ROS 10.60% 10.10% 9.40% 8.00% 14.5% 15.6%
ROE 30.17% 31.46% 31.90% 27.33% 33% 34%
ROA 26.74% 23.99% 23.26% 22.23% 31% 32%
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INVESTMENT THESIS

46. HSG
Tracking
• Market cap VND 3.2 trillion
• Current price VND 7,580 /share
• Room left for foreigners 31.65%
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INVESTMENT THESIS
• Low HRC price in Feb and March may benefit HSG gross margin in the
third quarter of fiscal year 2018 – 2019.
• Restructuring attempt to cut cost and enhance the operating cash flow help
to reduce the financial risk of HSG in the short term.
• Risks: Hoa Phat and Formosa may transform the underlying structure of the
market
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 9,243 8,806 13,957 24,108 19,834 N/A
Total equity (bil.) 2,502 3,214 4,598 5,500 5,182 N/A
Revenue (bil.) 16,124 16,969 19,854 28,474 34,198 N/A
NPAT (bil.) 433 715 1,754 1,225 136 N/A
EPS 4,292 5,258 8,617 3,348 355 N/A
BVPS 24,823 24,528 23,206 15,608 13,439 N/A
ROS 2.68% 4.21% 8.83% 4.30% 0.40% N/A
ROE 17.00% 117.00% 217.00% 317.00% 417.00% N/A
ROA 5.10% 7.92% 15.41% 6.44% 0.62% N/A
Top stocks pick: Galvanzied steel sheet manufacturer

47. Top stocks pick: Galvanzied steel sheet manufacturer
NKG
Tracking
• Market cap VND 1.1 trillion
• Current price VND 6,410 /share
• Room left for foreigners 69.82%
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INVESTMENT THESIS
• Change of CEO: change of CEO is the catalyst in the short term and might be
the good signal in the medium term.
• Restructuring attempt: NKG is selling non-efficient and divest from big
project that require huge capex in the next few years to consolidate the core
business.
• Galvanized steel sheet is probably at the bottom of the cycle and the current
valuation might have reflected all the difficulties last year.
• Risks: Hoa Phat and Formosa may transform the underlying structure of the
market
2014 2015 2016 2017 2018 2019F
Total assets (bil.) 2,937 3,572 6,390 10,174 8,122 N/A
Total equity (bil.) 506 640 1,580 2,940 2,971 N/A
Revenue (bil.) 5,845 5,756 8,942 12,638 14,861 N/A
NPAT (bil.) 77 126 518 708 57 N/A
EPS 1,921 2,786 7,449 5,279 315 N/A
BVPS 12,693 14,576 23,888 22,619 16,325 N/A
ROS 1.31% 2.19% 5.79% 5.60% 0.39% N/A
ROE 17.00% 117.00% 217.00% 317.00% 417.00% N/A
ROA 2.91% 3.87% 10.39% 8.54% 0.63% N/A

48. Top stocks pick: Aviation
• Management of 22 airports (exclude the international terminals of Da Nang, Cam Ranh and
Van Don international) - benefit from the growth of air travel (expected of 7-9% in 2019) (in
6M2019, air passenger and cargo have reached 26.7 million (+8.3% YoY) and 211,4 thousand
tons (+13.2% YoY)).
• A marginal increase in average fee in 2019 thanks to the Decision 2345/2017/QD-TTg and
the 12% increase in franchise fee in international terminal in CRX and DAD.
• The final decision about flight area assets has been submitted to the government, but has
not been approved yet -> delay the repair of runways in SGN and not allow ACV to record
revenue from taking off and landing in the FS.
• Catalyst: relisted in HOSE and state capital divestment to 65% by 2020
• Risks: overload capacity in some airports, repair and maintenance, decision about flight area,
delay in expansion projects
ACV
76,500 VND
• Market cap VND 185,485 billion
• Current price VND 85,000
/share
• PE FW 28.8x, P/B 2019 5.3x,
• Room left for foreigners 45.4%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 44,852 46,942 49,163 53,744 58,599 64,638
Total equity (bil.) 20,615 24,333 27,384 30,535 35,003 40,473
Revenue (bil.) 13,173 14,650 13,830 16,088 17,350 18,740
NPAT (bil.) 1,712 5,105 4,101 6,203 7,141 8,254
EPS N/A 2,345 1,883 2,849 2,952 3,412
BVPS N/A 11,163 12,577 14,024 16,076 18,589
ROS 13.0% 34.9% 29.6% 38.6% 41.2% 44.0%
ROE 8.3% 21.0% 15.0% 20.3% 20.4% 20.4%
ROA 3.8% 10.9% 8.3% 11.5% 12.2% 12.8%
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INVESTMENT THESIS

49. Top stocks pick: Aviation
• Enjoy the growth of air passengers in Viet Nam (expected to be 7-9% in 2019) >< stable number
of routes and destinations + modest fleet expansion -> cannot fully acquire the growth.
• Possess a portfolio of efficient companies in the aviation supply chain (Skypec, VIAGS, VACS,
NCS, TCS, NCT,…) -> mutually – support growth
• VNA: Low oil price (2019e: 66-68 USD/barrel) + Decreasing SG&A/ revenue -> improve
profit margin (EBIT margin is forecasted to increase from 4.9% to 6.6%).
• Listed in HOSE -> expected to gain more attention from the investors, especially institutional
ones
• Risks: Oil price, intense competition (VJC, Bamboo Airway), the overload of main airports (Tan
Son Nhat)
HVN
VND 39,000
• Market cap VND 59,568 billion
• Current price VND
42,200/share
• PE FW 16.8x, P/B 2019 2.6x,
• Room left for foreigners 20.1%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 83,538 87,033 79,197 73,442 70,205 67,548
Total equity (bil.) 12,545 16,300 16,931 18,247 22,874 23,801
Revenue (bil.) 53,433 56,518 63,375 70,742 73,306 76,171
NPAT (bil.) 278 1,703 1,816 2,111 3,567 3,350
EPS 248 1,388 1,479 1,720 2,515 2,362
BVPS 11,091 13,198 13,717 14,798 16,085 16,738
ROS 0.52% 3.01% 2.87% 2.98% 4.87% 4.40%
ROE 2.21% 10.45% 10.73% 11.57% 15.60% 14.07%
ROA 0.33% 1.96% 2.29% 2.87% 5.08% 4.96%
(*): of Vietnam Airlines only
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INVESTMENT THESIS

50. Top stocks pick: Aviation
• An outstanding LCC with approximately 46% market share in domestic routes (2018) and
active participation in the international market; high operating margin compared to regional LCCs.
• The key driver for airline rev in 2019 comes from international routes to Northeast Asia (2
newly opened routes; load factor > 80%, increasing frequency of effective ones) – increase the
number of passengers + pax yield
• Sales and lease back of aircraft and a part of aircraft orders are expected to contribute 32%
out of total rev + 45% operating profit (assume that in 2019, VJC will SLB 12 aircraft + right to
buy 9 aircraft)
• Jet A1 fuel is projected to decrease by 5.2% -> improve operating margin
• Risk: (1) Intense competition in the domestic market, pilots and crew solicit; (2) sales and lease
back.
VJC
VND 135,000
Up +9.0%
• Market cap VND 70.13 trillion
• Current price VND 123,900
/share
• PE FW 10.5x, P/B 2019 4.7x
• Room left for foreigners
9.89%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 12,045 20,063 31,658 39,086 44,413 51,518
Total equity (bil.) 2,147 4,734 10,594 14,039 18,490 23,227
Revenue (bil.) 19,845 27,499 42,303 53,577 59,284 63,024
NPAT (bil.) 1,170 2,496 5,073 5,335 7,160 7,445
EPS 5,893 6,562 11,356 9,850 11,750 10,996
BVPS 14,733 15,755 23,461 25,914 27,311 34,307
ROS 5.9% 9.1% 12.0% 10.0% 12.1% 11.8%
ROE 54.5% 52.7% 47.9% 38.0% 38.7% 32.1%
ROA 9.7% 12.4% 16.0% 13.6% 16.1% 14.5%
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INVESTMENT THESIS

51. Top stocks pick: Aviation
• Revenue of souvenir shop and café & restaurants is expected to grow exponentially
thanks to (1) increasing air passengers (expected to be 7-9% in 2019) and their consumption
at airports; (2) AST’s plan to newly open 15 point-of-sales in 2019 + 6 newly opened shops in
international terminal of CRX and DAD operates in the whole year.
• Consolidate rev and profit of Jalux Taseco (JDV) (estimated to be 120 billion rev and 12
billion NI) (AST has raised the ownership in JDC from 49% to 51% in Q1/2019).
• Partnership investment in Alacarte Ha Long (projected size of VND 250 bn) was pended in
2018 and then has been approved early liquidation in AGM after consideration about the
investment size and potential.
• Risks: cannot renew the rental contract with ACV
AST
VND 75,500
Up +18%
• Market cap VND 2,880 billion
• Current price VND 64,000
/share
• PE FW 15.2x, P/B 2019 4.5x,
• Room left for foreigners
11.68%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 51 368 626 666 802 911
Total equity (bil.) 27 202 469 555 648 724
Revenue (bil.) 39 317 659 865 1,089 1,185
NPAT (bil.) 1 44 147 161 169 196
EPS 633 6,071 5,615 4,462 4,209 4,135
BVPS - - - - 14,229 15,907
ROS 2.8% 13.8% 22.4% 18.6% 15.6% 16.5%
ROE 4.0% 21.7% 31.4% 29.0% 26.1% 27.1%
ROA 2.2% 11.9% 23.5% 24.2% 21.1% 21.5%
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INVESTMENT THESIS

52. Top stocks pick: Building materials
• Growing demand, supported by strong export to China – eases the competition in the
domestic market.
• The leading in Vicem group with a strong brand name, 28% market share in the southern
market, 11% market share in the whole country.
• The foreign long-term borrowing outstanding (in EUR and USD) is decreasing and is
expected to be fully repaid in 2021 -> decrease interest and foreign exchange risk.
• Risks: construction slowing down; rising inputs (coal and electricity) prices, foreign exchange
risk.
HT1
VND 18,960
Up +19.6%
• Market cap VND 6,104 billion
• Current price VND
15,850/share
• PE FW 8.9x, P/B 2019 1.2x,
• Room left for foreigners
42.69%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 11,919 11,780 11,080 10,636 9,886 9,346
Total equity (bil.) 4,426 5,195 5,189 5,181 5,286 5,376
Revenue (bil.) 7,608 8,237 8,209 8,376 9,058 9,137
NPAT (bil.) 739 809 488 645 753 735
EPS 0 2,099 1,067 1,521 1,775 1,734
BVPS 0 0 13,319 13,308 13,597 13,842
ROS 9.7% 9.8% 5.9% 7.7% 8.3% 8.0%
ROE 18.1% 16.8% 9.4% 12.4% 14.4% 13.8%
ROA 6.0% 6.8% 4.3% 5.9% 7.3% 7.6%
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INVESTMENT THESIS

53. Top stocks pick: Building materials
• Leading in plastic pipe production with the capacity of 130,000 tons, 40-45% market share
in the South – the favorable oil price in 2019 will help improve the profit and make more room
for discount policy to boost sales.
• The discount competition in southern market is expected to be eased in 2019 (from HSG)
+ construction activities are expected to be more active in the coming years in the south.
• Low D/E, no long term debt, high dividend (>=35%)
• Risks: Fluctuating material price, ownership structure, transfer pricing risks.
BMP
VND 57,300
Up +32.3%
• Market cap VND 3,520 billion
• Current price VND
43,300/share
• PE FW 9.6x, P/B 2019 1.3x,
• Room left for foreigners
25.53%
2015 2016 2017 2018 2019F 2020F
Total assets (bil.) 2,438 2,891 2,872 2,811 3,423 3,367
Total equity (bil.) 2,015 2,297 2,449 2,454 2,814 2,869
Revenue (bil.) 2,792 3,309 3,825 3,920 4,275 4,368
NPAT (bil.) 519 627 465 427 407 425
EPS 11,410 13,796 5,677 5,154 4,480 4,670
BVPS 44,313 50,516 29,918 29,979 34,372 35,042
ROS 18.6% 19.0% 12.1% 10.9% 9.5% 9.7%
ROE 27.8% 29.1% 19.6% 17.4% 15.5% 15.0%
ROA 23.8% 23.5% 16.1% 15.0% 13.1% 12.5%
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INVESTMENT THESIS

54. • High demand. Guarantee the output of CSV. We also note that the barrier of entry is high,
preventing the other players join the market.
• Growth in capacity from two new electrolyzes (2019 delay ) (+7.000 tons of NaOH) and moving
3 factories in 2021-2022 (keep using the old factories after that)
• High dividend payout ratio. CSV has 3 consecutive years to pay >20% annual dividend. In
2019, CSV plan to pay 2,000 VND/share, which is equivalent to a dividend yield of 7.3%.
• Low valuation PE Trailing is at 4.84, deeply discounted from the median PE of chemical sector
(~10.01)
• Catalysts: (1) Divestment from Vinachem (reducing the ownership to 51%) (2) Increase the
capacity of NaOH
• Risks: Shortage of funds to move their factories. (estimated about 2500 – 3000 bill VND).
CSV
TP: N/A
• Market cap VND 1.2 trillion
• Current price VND 27,550
/share
• PE FW 14.4x, P/B 2019 3.4x
• Room left for foreigners
31.7%
2014 2015 2016 2017 2018
Total assets (bil.) 971 1,012 1,011 1,089 1,104
Total equity (bil.) 621 623 713 819 841
Revenue (bil.) 1,551 1,546 1,541 1,466 1,588
NPAT (bil.) 158 133 176 240 252
EPS 3,174 3,017 3,680 5,015 5,201
BVPS 13,116 13,232 15,443 17,962 18,524
ROS 9.0% 9.7% 11.7% 16.8% 15.9%
ROE 26.1% 24.2% 27.0% 32.1% 30.5%
ROA 15.7% 15.2% 17.8% 23.4% 23.1%
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INVESTMENT THESIS
Top stocks pick: Chemical