PetroVietnam Gas Joint Stock Corporation (GAS) [M-PF +5.0%]

Transcription

1 PetroVietnam Gas Joint Stock Corporation (GAS) [M-PF +5.0%] Update Report Date: March 28, F 2018F Current Price: VND54,000 Rev Growth -7.9% 8.3% 10.0% Current Target price 18 March 2011 VND53,700 EPS Growth -17.5% -0.7% 10.8% Previous Target price VND49,200 GPM 19.6% 18.7% 19.0% NPM 11.9% 11.0% 11.1% Upside to TP: -0.6% EV/EBITDA 8.9x 9.2x 8.3x Dividend Yield: 5.6% P/Op CF 20.1x 10.2x 9.2x TSR: +5.0% P/E 15.0x 14.9x 13.5x 70% 60% GAS VNI 50% 40% 30% 20% 10% 0% -10% Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Industry: Utilities GAS *Peers VNI Market Cap: $4.62 bn P/E (ttm) 15.1x 21.6x 16.9x Foreign Room: $91 mn P/B (curr) x 2.2x ADTV30D: $0.8 mn Net D/E -0.3x 5.8x NA State Ownership: 96% ROE 17.6% 12.7% 13.0% Outstanding Shares: 1.91 bn ROA 12.5% 7.9% 2.2% Fully Diluted Shares: 1.91 bn * includes foreign peers using adjusted market multiples. 3-Year EPS PEG 3.0x Duong Dinh Manager duong.dinh@vcsc.com.vn ext. 140 Company Overview: GAS is the monopoly company of Vietnam s gas industry. It provides input feedstock for 100% of the gas thermal power plants, 70% of the urea producers and 100% of the industrial parks in the country. GAS also has 70% market share in the LPG wholesale business. It is a part of the PetroVietnam (PVN) family. Value from upstream venture outweighs possible lower oil price We raise our target price for GAS by 9.1% and upgrade from U-PF to M-PF as we boost the terminal growth rate to incorporate the potential value of a 25% stake in the White Lion phase 2 gas field s EPS is flat due to retroactive profit in 2016, but core EPS is expected to grow by 28.4% with a recovery in oil prices and a higher tariff for Thien Ung-Dai Hung gas field. We forecast EPS to grow a modest 10.8% in 2018 with a lower oil price assumption given recent the aggressive production plans of shale oil players. TTM P/E of 14.9x is 30.6% below peers, but EPS CAGR of 4.9% is unattractive. GAS participates in upstream sector for first time. In February 2016, GAS got approval from the government to invest USD500 million to possess a 25% stake in the White Lion phase 2 gas field, which is estimated to have total output of 24 bcm and is planned to come online in Q Details of the USD500 million investment are not clear at the moment and might just include past costs and not development costs. We assume this new venture is value accretive for shareholders as GAS indicated that IRR of the upstream sector is 12.25% (higher than IRR of gas transportation business of 12.0%). Therefore, we raise the terminal growth rate to capture this upside potential. Increase in tariff for Thien Ung-Dai Hung brings in more profit. GAS expects approval to double the tariff for Thien Ung-Dai Hung gas pipeline from USD1.5/MMBTU to USD3.0/MMBTU. This gas pipeline carries a small volume of 300 million m3 p.a. We estimate it will contribute VND1 trillion (USD50 million) in revenue and ~USD22.2 million in profit for 2017, thanks to the new tariff. We lower oil price base case and sales volume. Due to recent aggressive production plans from shale oil players, we lower our oil price assumption by USD5/bbl to USD60/bbl for the period and to USD70/bbl over the period. We also reduce our gas output for by 5%-10% given a possible one-year delay of the Block B gas field and slow progress at other new gas fields, suggesting a lower utilization rate for Nam Con Son 2 phase 2 gas pipeline. Ca Mau Gas Processing Plant will not contribute significantly in the near term. We estimate that this USD500 million capital expenditure project will incur a VND169.3 billion (USD7.5 million ) loss in its first year of operation and contribute nominally in 2018 due to a low utilization rate. We hold a neutral view on GAS s LPG retail strategy. GAS disclosed that they are planning to raise their market share in the retail LPG sector from a current 22% to 35%. Given the lack of disclosure on its execution, we have a neutral view on this new strategy as retail LPG is a competitive sector and GAS lacks a track record of developing and managing a retail chain. See important disclosure at the end of this document VCSC<GO> March 28,

2 2016 recap: Oil price decline led to output price drops across most segments Figure 1: GAS's 2016 results Year vs 2015 Explanation Gas output (mcm) 10,445 10, % Heavy rain in Q weighed on dry gas demand LPG sales volume (tons) 1,336,000 1,263, % Due to high base effect in 2015 Price (USD/MMBTU) Oil price % Output price -Power plant's under ToP % Fixed price is subject to 2% increase p.a Output price -Power plant's above ToP % Linked to fuel oil price and fell less than oil price with application of floor price Output price -Industrial parks % Linked to fuel oil price which dropped more than oil price LPG price (USD/ton) % Fell with oil price Revenue (VND bn) 64,358 59, % Gross profit 13,396 11, % SG&A -2,734-3, % Operating profit 10,663 8, % Interest expense % Non-operating profit 730 1, % Profit before tax 11,197 9, % NPAT-MI, reported 8,535 7, % Margin Gross margin 20.8% 19.6% SG&A/Sales 4.2% 5.2% Operating margin 16.6% 14.4% EBITDA margin 21.5% 20.1% NPAT margin 13.3% 11.9% Effective tax rate (%) 20.0% 21.6% Includes retroactive revenue of VND1.97 trillion (USD87.7 million) from Phu My-Ho Chi Minh gas pipeline. Excluding this, revenue decline 10.9% 2016 includes retroactive profit of VND1.55 trillion (USD68.9 million). Excluding this, GP dropped by 24.9% GAS increased selling and marketing expense for expanding LPG retail segment Increasing bank loan financing for GPP Ca Mau No provision in 2016 compared to VND221 billion (USD9.9mn) provision in 2015 Earnings tumbled due to oil price collapse but were bolstered by retroactive earnings Excluding retroactive profit, GPM in 2016 was 17.0% Source: GAS & VCSC See important disclosure at the end of this document VCSC<GO> March 28,

3 Year 2017 outlook: Oil price recovery, higher pipeline tariff to boost earnings Figure 2: Changes to 2017 forecast 2017F Old 2017F New 2017 New vs Old 2017F vs 2016F Explanation Volume Gas output (mcm) 10,472 10, % -1.3% Lower gas production from old fields LPG sales volume (tons) 1,472,662 1,307, % 3.6% Price (USD/MMBTU) Oil price (USD/bbl) % 22.2% Output price -Power plant's under ToP Output price -Power plant's above ToP % 2.0% Fixed price and is subject to 2% increase p.a % 2.0% Output price -Industrial parks % 34.5% Linked to 46% Medium fuel oil price but at least equal to input gas price as the government approved GAS to apply floor price in January Input gas price is subject to 2% increase p.a Due to oil price recovery; Fuel oil price in Q soared by 101% compared to 57% surge of oil price LPG price (USD/ton) % 19.6% Due to oil price recovery Transportation tariff for Thien Ung-Dai Hung gas pipeline VND billion % % Revenues (VND bn) 65,463 64, % 8.3% Gross profit 11,534 12, % 3.4% SG&A -3,133-3, % 8.3% Operating profit 8,401 8, % 1.7% Interest expense % 24.9% Non-operating profit 1, % -25.1% Profit before tax 9,556 9, % -2.3% NPAT-MI, reported 7,342 7, % -0.3% NPAT-MI, recurring 6,489 7, % 27.7% Margin Gross margin 17.6% 18.7% SG&A/Sales 4.8% 5.2% Operating margin 12.8% 13.5% EBITDA margin 18.8% 18.7% NPAT margin 11.2% 11.0% Effective tax rate (%) 20.0% 20.0% Source: GAS & VCSC GAS expects approval for doubling tariff for Thien Ung-Dai Hung gas pipeline which has small volume of 300 million m3 p.a and contributes VND1 trillion (USD50 million) in revenue with new tariff Oil price recovery results in improved output prices Adjusting for retroactive profit in 2016, this item will grow by 19.3% Previously, we assumed half of retroactive profit from Phu My-Ho Chi Minh gas pipeline would be booked in 2017, but it was booked completely in 2016 No growth as 2016 s earnings included retroactive profit Oil price recovery and higher tariff of Thien Ung-Dai Hung gas field is estimated to bring ~VND500 billion (USD22.2 million) of more profit See important disclosure at the end of this document VCSC<GO> March 28,

4 Participation in upstream sector promises higher IRR In February 2016, GAS and PetroVietnam Exploration and Production Corporation (PVEP) signed a principle agreement for cooperation in development of the White Lion - phase 2 gas field project, Block 15-1, Cuu Long basin. Given cooperation with PVEP, GAS will spend USD500 million to have a 25% stake in the gas field. White Lion phase 2 is estimated to have total output of 24 billion cubic meters and is planned to come on line in Q Cuu Long JOC is the White Lion gas field developer. It was established in 1998 and current stakeholders include: PetroVietnam and PVEP - 50%, CononoPhillips %, KNOC %, SK Corporation 9% and Geopetrol Vietnam - 3.5%. White Lion phase 1 first produced gas in January 2017 and has production of 1.7 million m3 per day and 600 million m3 per year. According to GAS s IR, details of the USD500 million investment are not clear at the moment. It might be just past costs (seismic survey, exploration drilling) and does not include development costs yet. However, they indicated the IRR of the upstream sector is 12.25%, which is higher than the IRR of the gas transportation business (12.0%). Furthermore, White Lion gas field is estimated to have low production costs, therefore, we assume this new venture is value accretive for shareholders. If applying an output gas price of USD7/MMBTU (the gas price that Red Emperor gas field received recently), potential revenue from this new project is USD6.5 billion over its 20 year lifetime. GPP Ca Mau comes online but has not yet contributed significantly On March 12, 2017, GAS did the first gas in for the Ca Mau Gas Processing Plant project (Ca Mau GPP) after more than two years of construction. The plant is commissioning and could go into commercial operation from the middle of the year. This is the second gas processing plant in Vietnam (the first is GPP Dinh Co) which targets to reduce LPG imports for the country. This project has investment capital of USD500 million and has capacity to produce 207,000 tons of LPG and 11,000 tons of condensate p.a. We estimate that this project will not contribute significantly for GAS in the near term given a low utilization rate as its feedstock source, PM3 Ca Mau gas field (which is developed by a cooperation between Vietnam and Malaysia), has lower production waiting for new wells on line as well as a low LPG price. Figure 3: Ca Mau GPP's profitability Year Utilization rate (%) 50% 60% LPG price (USD/ton) LPG sales volume (tons) 103, ,500 Condensate price (USD/ton) Condensate sales volume (tons) 5,950 7,140 Revenue (VND bn) 1, ,773.8 NPAT (VND bn) (169.3) Source: GAS & VCSC See important disclosure at the end of this document VCSC<GO> March 28,

5 New projects are progressing slowly amid lower oil price assumptions We lower our gas output assumption for the period by 5%-10% given no significant progress so far for the Block B gas project, which suggests breaking ground on this project will happen next year, not this year, and therefore, first gas might be delayed a year to In addition, it might take Nam Con Son 2 - phase 2 gas pipeline (with capacity of 7 bcm p.a) more time to build up its utilization rate given the slow development progress for other new gas field projects, such as Red Emperor and White Lion, which have total production volume of just 2 bcm p.a. In addition, we lower our oil price assumption by USD5/bbl for to USD60/bbl and for the period to USD70/bbl given increasing uncertainties about an oil price recovery due to aggressive production plans of US shale oil players recently. Figure 4: GAS's sales volume outlook Figure 5: Oil price assumption Old assumption New assumption Old assumption New assumption Source: VCSC GAS expands its retail LPG business Currently, GAS dominates the LPG wholesale sector with 70% market share and the company is planning to expand its footprint in the retail LPG sector and targets to increase its market share from a current 22% to 35% via two associates/subsidiaries, PGS and PVG. Recently, they launched new products and are expanding their retail chain in order to increase the company s profitability as GAS believes the retail LPG sector has much higher margins than the wholesale LPG sector. Given the lack of disclosure on the execution of this strategy, we have a neutral view on this new strategy as retail LPG is a competitive sector and GAS lacks a proven track record of developing and managing a retail chain. The LPG sector has 26 import-export enterprises, 130 general agents, 3,500 agents and 8,000 retail stores. Of note, according to an industry player, Vietnam s LPG sector growth has slowed down in the past five years to 5%-6% p.a compared to 10%-15% over the previous period. Even though Vietnam s northern market has had a higher growth rate recently, the southern region is still the biggest consumption market. See important disclosure at the end of this document VCSC<GO> March 28,

6 Figure 6: LPG consumption in Vietnam 1,800 CAGR 6.4% 1,600 1,400 1,200 1, Source: General Office Statistics Figure 7: LPG sector by market share Total -ELF 22% 15% PetroVietnam Gas South (PGS) Anpha Petrol 6% 16% Saigon petrol Gas Petrolimex 8% 10% 13% 10% PetroVietnam Gas North (PVG) VT Gas Others Source: Company reports See important disclosure at the end of this document VCSC<GO> March 28,

7 Valuation We revise up our target price for GAS by 9.1% to VND53,700/share as the incorporation of GAS s 25% stake in the White Lion phase 2 gas field, a lower discount rate as well as higher P/E valuation outweigh the impact of a lower oil price assumption and lower sales volume output for the period. Figure 8: Target price derivation Method Fair value (VND/sh) Weight (%) Contribution DCF (10 year) 50,000 50% 27,000 TTM P/E 18.8x 53,417 50% 26,709 Target price 53,700 Upside (%) -0.6% Dividend yield (%) 5.6% TSR (%) 5.0% P/E (ttm) at TP 18.9x P/E (2017F) at TP 14.9x Source: VCSC forecast Discounted Cash Flow The discount rate decreases 140 bps due to a lower risk free rate and risk premium. We raise the terminal growth rate from 3% to 4% to capture potential value from White Lion phase 2. Figure 9: DCF valuation Cost of capital Previous report Revised FCFF (10 year) VND billion Beta PV of Free Cash Flows 38,532 Market Risk Premium % 8.1% 7.3% PV of Terminal Val (4% g) 54,676 Risk free rate % 5.4% 5.0% PV of FCF and TV 93,208 Cost of equity % 15.9% 14.5% Cash & ST investments 19,435 Cost of Debt % 6.8% 6.8% Minus Debt -7,546 Debt % 0.0% 0.0% Minus Minority Interest -1,724 Equity % 100.0% 100.0% Equity value (VND bn) 103,373 Corporate Tax Rate % 20.0% 20.0% Shares (mn) 1,914 WACC % 15.9% 14.5% Price per share, VND 54,000 Source: VCSC See important disclosure at the end of this document VCSC<GO> March 28,

8 Figure 10: Free Cash flows VND billion 2016A 2017F 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F EBIT 8,543 8,685 9,715 10,419 12,681 18,529 18,696 21,526 24,307 28,134 Plus Depreciation 3,070 3,321 3,836 4,394 5,200 3,529 3,528 3,527 3,526 3,525 Minus Tax -1,847-1,737-1,943-2,084-2,536-3,706-3,739-4,305-4,861-5,527 Minus Capex -3,374-9,751-6,882-9,358-13,913-1,923-4,461-1,000-1,000-4,000 Minus Working Cap Increase -4, ,004-2, ,039-2,938-3,492 Free Cash Flow 2, ,031 3,228-1,572 14,381 13,146 17,709 19,034 18,640 Source: VCSC s forecast Multiple valuation GAS s peer average TTM P/E has increased from 20.4x to 21.6x over the past three months due to the recovery in oil prices. Figure 11: Regional peers USD mn Country Mkt Cap TTM Net Sales GAIL India Ltd INDIA Indraprastha Gas Ltd Perusahaan Gas Tbk Petronas Gas Bhd Gas Malaysia Bhd Average PetroVietnam Gas INDIA INDONESIA MALAYSIA MALAYSIA VIETNAM Source: Bloomberg; VCSC estimates. Net sales growth TTM NPAT NPAT growth D/E ROE Div yield TTM P/E Adj TTM PE Adj 2017E PE 9,860 8, , ,481 2, ,817 1, ,231 2, ,622 2, We see that GAS s P/E was at a 13.1% discount compared to its peer P/E over the past three years. Figure 12: GAS s historical adjusted TTM P/E vs peer average LQ P/B GAS Peers Average Source: Bloomberg. See important disclosure at the end of this document VCSC<GO> March 28,

9 Sensitivity analysis Figure 13: GAS's sensitivity to oil price Assumptions for 2017 Low case Base case High case Oil price 2017 avg. (USD/bbl) Fuel oil price assumption (USD/ton) Selling price for AToP (USD/MMBTU) Selling price for IP (USD/MMBTU) LPG price (USD/ton) Financial ratios FY17's NPAT (VND bn) 5,036 6,048 7,055 8,189 9,685 EPS (VND/share) 2,579 3,098 3,613 4,194 4,960 - EPS growth (%) 29.1% -14.9% -0.7% 15.2% 36.3% ROE (%) 13.0% 15.4% 17.7% 20.3% 23.6% Valuation 1 YR PER (x) Target price (*) 48,900 51,300 53,700 56,500 59,400 Upside (%) -9.4% -5.0% -0.6% 4.6% 10.0% Dividend yield (%) 5.6% 5.6% 5.6% 5.6% 5.6% TSR (%) -3.9% 0.6% 5.0% 10.2% 15.6% Source: VCSC (*) Target price is less sensitive to oil price as P/E valuation is based on TTM EPS while earnings are highly sensitive to oil price. Recommendation History Figure 14: History of recommendation 80,000 70,000 60,000 50,000 O-PF 47,000 M-PF 56,400 U-PF 50,200 M-PF 53,700 40,000 SELL 49,200 30,000 20,000 Jan-16 Apr-16 Jul-16 Oct-16 Jan-17 Actual price Target price Source: Bloomberg. See important disclosure at the end of this document VCSC<GO> March 28,

10 Financial Statements INCOME STATEMENT (VND bn) 2016A 2017F 2018F BALANCE SHEET (VND bn) 2016A 2017F 2018F Revenue 59,209 64,148 70,561 Cash & cash equivalents 13,612 12,907 16,215 COGS -47,593-52,137-57,188 Short term investment 5,823 5,823 5,823 Gross Profit 11,616 12,011 13,374 Accounts receivables 5,690 6,165 6,781 Sales & Marketing exp ,017-1,118 Inventories 1,297 1,429 1,576 General & Admin exp. -2,134-2,310-2,541 Other current assets 6,930 7,462 8,159 Operating Profit (EBIT) 8,543 8,685 9,715 Total Current assets 33,352 33,786 38,554 Financial income 1, Fix assets, gross 48,601 58,352 65,233 Financial expenses Depreciation -26,635-29,956-33,792 In which, interest expense Fix assets, net 21,966 28,395 31,441 Share profit/loss from associates LT investment Net other income/(loss) LT assets other 1,435 1,301 1,301 Profit before Tax 9,235 9,024 9,982 Total LT assets 23,545 29,841 32,886 Income Tax -1,997-1,805-1,996 Total Assets 56,897 63,626 71,441 NPAT before MI 7,238 7,219 7,986 Minority Interest Accounts payable 2,431 2,663 2,921 NPAT less MI, reported 7,075 7,055 7,819 Short-term debt 1,177 2,750 2,087 NPAT less MI, adjusted 5,525 7,055 7,819 Other ST liabilities 5,693 6,147 6,654 EBITDA 11,613 12,005 13,551 Total current liabilities 9,301 11,560 11,662 EPS basic reported, VND 3,640 3,613 4,005 Long term debt 6,369 9,648 15,117 EPS basic adjusted, VND 2,814 3,613 4,005 Other LT liabilities EPS fully diluted, VND 2,814 3,613 4,005 Total Liabilities 16,039 21,411 26,981 RATIOS 2016A 2017F 2018F Preferred Equity Growth Paid in capital/issued capital 19,139 19,140 19,140 Revenue growth -7.9% 8.3% 10.0% Add l share capital/share premium Operating profit (EBIT) growth % -19.9% 1.7% 11.9% Retained earnings 6,176 7,489 9,566 PBT growth % -17.5% -2.3% 10.6% Other equity 13,630 13,630 13,630 EPS growth %, reported -17.5% -0.7% 10.8% Minority interest 1,724 1,889 2,055 Total equity 40,858 42,336 44,580 Profitability Liabilities & equity 56,897 63,746 71,561 Gross Profit Margin % 19.6% 18.7% 19.0% Operating Profit, (EBIT) Margin % 14.4% 13.5% 13.8% CASH FLOW (VND bn) 2016A 2017F 2018F EBITDA Margin % 19.6% 18.7% 19.2% Beginning Cash Balance 17,664 13,612 12,907 NPAT less MI Margin, % 11.9% 11.0% 11.1% Net Income 7,075 7,055 7,819 ROE % 17.6% 17.7% 18.8% Dep. & amortization 3,070 3,321 3,836 ROA % 12.5% 11.7% 11.6% Change in Working Capital -4, Other adjustments Efficiency Cash from Operations 5,182 10,177 11,317 Days Inventory On Hand Days Accts. Receivable Capital Expenditures, net -3,374-9,751-6,882 Days Accts. Payable Investments, net 1, Cash Conversion Days Cash from Investments -1,836-9,750-6,882 Liquidity Dividends Paid -8,855-5,741-5,742 Current Ratio x in Share Capital Quick Ratio x in LT debt 0 4,892 4,805 Cash Ratio x in ST debt 1, Debt / Assets % Other financing cash flows Debt / Capital % Cash from Financing -7,398-1,132-1,127 Net Debt / Equity % Interest Coverage Net Change in Cash -4, ,309 Ending Cash Balance 13,612 12,907 16,215 Source: Company financial statements, VCSC forecasts. See important disclosure at the end of this document VCSC<GO> March 28,

11 VCSC Rating and Valuation Methodology Absolute, long term (fundamental) rating: The recommendation is based on implied total return for the stock defined as (target price current price)/current price + dividend yield, and is not related to market performance, RATING DEFINITION BUY Total stock return including dividends over next 12 months expected to exceed 20% OUTPERFORM (O-PF) MARKET PERFORM (M-PF) UNDERPERFORM (U-PF) SELL NOT RATED RATING SUSPENDED Total stock return including dividends over next 12 months expected to be positive 10%-20% Total stock return including dividends over next 12 months expected to be between negative 10% and positive 10% Total stock return including dividends over next 12 months expected to be negative 10%-20% Total stock return including dividends over next 12 months expected to be below negative 20% The company is or may be covered by the Research Department but no rating or target price is assigned either voluntarily or to comply with applicable regulation and/or firm policies in certain circumstances, including when VCSC is acting in an advisory capacity in a merger or strategic transaction involving the company, A rating that happens when fundamental information is insufficient to determine an investment rating or target, The previous investment rating and target price, if any, are no longer in effect for this stock, Unless otherwise specified, these performance parameters only reflect capital appreciation and are set with a 12-month horizon, Future price volatility may cause temporary mismatch between upside/downside for a stock based on market price and the formal recommendation, thus these performance parameters should be interpreted flexibly, Risks: Past performance is not necessarily indicative of future results, Foreign currency rates of exchange may adversely affect the value, price or income of any security or related instrument mentioned in this report, For investment advice, trade execution or other enquiries, clients should contact their local sales representative. See important disclosure at the end of this document VCSC<GO> March 28,

12 Disclaimer Analyst Certification of Independence I, Duong Dinh, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers, I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed in this report, The equity research analysts responsible for the preparation of this report receive compensation based upon various factors, including the quality and accuracy of research, client feedback, competitive factors, and overall firm revenues, which include revenues from, among other business units, Institutional Equities and Investment Banking, VCSC and its officers, directors and employees may have positions in any securities mentioned in this document (or in any related investment) and may from time to time add to or dispose of any such securities (or investment),vcsc may have, within the last three years, served as manager or 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13 Contacts Corporate Head Office Hanoi Branch Bitexco Financial Tower, 2 Hai Trieu Street 109 Tran Hung Dao District 1, HCMC Hoan Kiem District, Hanoi Transaction Office Transaction Office 10 Nguyen Hue Street Nguyen Cong Tru Street District 1, HCMC District 1, HCMC Research Research Team Barry Weisblatt, Head of Research, ext barry.weisblatt@vcsc.com.vn research@vcsc.com.vn Digvijay Singh, Senior Manager ext 130 Logistics and Transportation Banks, Securities, Insurance Anirban Lahiri, Senior Manager, ext Thuy Le, Analyst, ext Nga Nguyen, Analyst ext Phu Pham, Analyst, ext 124 Macro - Hien Nguyen, Analyst, ext 132 Oil & Gas, Power and Fertilizer - Luong Hoang, Analyst, ext 364 Duong Dinh, Manager, ext Tram Ngo, Analyst, ext 135 Consumer and Pharma Phap Dang, Senior Manager ext 143 Retail Client Research - Dao Nguyen, Senior Analyst, ext 185 Duc Vu, Manager, ext Nghia Le, Analyst, ext Thanh Nguyen, Analyst, ext Thanh Tran, Analyst, ext Ninh Chu, Analyst, ext 196 Real Estate, Construction and Materials Hong Luu, Manager, ext Anh Nguyen, Analyst, ext Vy Nguyen, Analyst, ext 147 Institutional Sales and Brokerage & Foreign Individuals Head of Institutional Sales Vietnamese Sales Michel Tosto, M. Sc. Dung Nguyen ext ext 136 michel.tosto@vcsc.com.vn dung.nguyen@vcsc.com.vn Retail & Corporate Brokerage Ho Chi Minh City Hanoi Quynh Chau Quang Nguyen ext ext 312 quynh.chau@vcsc.com.vn quang.nguyen@vcsc.com.vn See important disclosure at the end of this document VCSC<GO> March 28,