MCG increased VND5 billion of profit after reviewing the financial statement. Remittances reached USD2.75 Bln in 8 Months at HCMC

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1 03 Sep 2014 Daily Bulletin Market Review: TCSC Research T: E: research@tcsc.vn Appeared the decline signal Company News: In focus: Short News MCG increased VND5 billion of profit after reviewing the financial statement Remittances reached USD2.75 Bln in 8 Months at HCMC VN-index % (mn shares) Total value (USD Foreign Net Buy (USD Top foreign Trading HSX HNX FLC ,482,200 VIC ,392,400 OGC ,800 KBC ,140 VSH ,890 HSG ,270 HT ,260 KDC ,640 DXG ,800 ASP ,000 VND ,600 PVC ,200 PGS ,400 VTV ,500 PVS ,000 KLF ,500 BCC ,000 CTS ,300 DBC ,000 LAS ,700 HNX-index % (mn shares) Total value (USD Foreign Net Buy (USD Index Change % DowJones 17, FTSE 100 6, Hangseng 25, Kospi 2, Nasdaq 4, Nikkei , S&P 500 2, Shanghai 2, Thailand 1, P a g e

2 Top 5 stocks bought/sold by foreign investor VIC ,333, HPG , FLC ,542, DPM , GAS , VIC , HSG , HPG , DPM , KDC , PVS , PGS , VND , BCC , PVC , PVC , LAS , PVS , VTV , Market Review Today, VN-Index appeared the decline signal after having a slight rising session with 4,10 points in equivalence of 0,64% to close at 640,75. Advancers outnumbered laggards, 156:74. The market liquidity increased slightly by 7,78% in volume and decreased slightly 5,20% in value to 204,66 million shares and VND3.575,48bln, respectively. Trading value in put-through decreased sharply, equal to 13,20% of total trading value in HSX. The foreign investors had a net buying session on HSX with total value of VND34,29bln. Similar to VN-Index, HNX-Index had a slight rising session with 0,29 points equal to 0,33% to close at 87,33. Advancers outnumbered laggards, 147:71. The liquidity of market increased slightly by 3,77% in volume and decreased slightly 3,86% in value to 85,92 million shares and VND1.042,73bln, in turn. Similar to the performance of HSX, the foreign investor has net purchased on HNX with the net buying value of VND22,71 bln. When the ATO phase finished, the market increased slightly with 4,04 points. Start the continuous phase, the demand increased moderately. It made VN-Index rose constantly, sometimes it increased by 7,91 points. After that, the selling pressure has increased and it has made the VN-Index started falling back slightly. Finished the continuous phase, VN-Index rose 4,44 points. To ATC phase, the selling pressure was more dominant than the buying pressure so VN-Index only increased slightly by 4,10 points. It should be noted in today's session when market s liquidity remained at high level, reaching VND4.816,21 billion on two stock exchanges (put-through value on today was only equal a half put-through value of the previous session). Today's session seemed the active session of penny and midcap stocks in recent times, especially in the mineral stocks. The banking stocks continued to have mild rally. The large-cap stocks except GAS and VNM did not get a good rally. In today's trading session, the VN-Index had to adjust after touching the 645 level, this is the targer of VN-Index s graph following the shoulder-head-shoulder s model. According to our opinion, at this level, there contained so much risk, reflected by market liquidity was increasing gradually and VN-Index was facing quite strong technical resistance. Thus, the ability of the future, VN-Index will begin to adjust. Therefore, investors need a rational plan to take profits, do not disburse for new stock during this period. KLF , P a g e

3 Top 5 largest trading volume stocks FLC ,604,630 ITA ,722,950 OGC ,889,580 HQC 8.7 7,634,130 IJC ,706,550 PVX ,502,300 SHB 9.7 9,449,940 SCR ,344,410 SHS ,137,100 In view of technical analysis, the VN-Index s graph showed adjusted signal after moving near 645 level. This was the strong resistance of 61.8% Fibonacci Projection indicator. Therefore, in the next session, the VN-Index likely will tug sharply and go down. KLS ,646,710 Top 5 largest trading value stocks (USD FLC VIC ITA OGC SSI In view of technical analysis, the HNX-Index s chart appeared the adjusted signal after hitting resistance and 88 resistant price channel. Therefore, the HNX-Index will tug sharply and go down at this level PVS SHB PVC PVX SCR Company News MCG increased VND5 billion of profit after reviewing the financial statement Electrical Mechanical Joint Company and Vietnam Construction announced the semi-annual consolidated financial statements in 2014 after reviewing. Accordingly, MCG recorded to reach more nearly VND5 billion of profit in the first six months, reaching VND33.2 billion (for shareholders of parent company). The same period of 2013, net profit of MCG was only VND763 million. Profit s growth in the first 6 months of the MCG in 2014 was mainly due to significantly reduce the COGS/net sales. Explanation the different profit, MCG said the company's profits 3 P a g e

4 Trading by sector: Sector Change % Retail Insurance 0.12 Technology 1.17 Petro Public services Financial services 2.77 Consumer Goods Entertainment 1.01 Commodities Chemical 0.57 Banking 1.39 Auto parts Resources F&B 0.22 Media & Telecom Construction & Materials 0.62 Health 0.06 Transactions of 10 largest market cap stocks: % Change OutSt Share ( Market Cap GAS ,895 11,216 VNM ,420 VIC ,382 3,795 VCB ,317 3,105 MSN ,829 CTG ,187 2,293 BID ,606 1,814 BVH ,492 HPG ,181 STB ,127 1,040 % Change OutSt Share ( Market Cap PVS ACB SQC SHB VCG PVI OCH LAS KLS PVX increased by additional reports on business performance different exchange rate on the financial statements in the first 6 months of 2014 of Van Chan Hydropower JSC (MCG unit holds 50% stake). ITA missed VND7 billion of profit after reviewing Investment Corporation and the Tan Tao Industrial published the semiannual report after the 2014 review. Accordingly, the revenues and profits of the ITA in the first 6 months were "loss" more or less after the review. Specifically, the company's net sales fall from VND161 billion to VND152 billion. Gross profit was only VND126 billion from VND131 billion the previous reviewing. As a results, ITA gained VND57 billion of net profit in first 6 months of 2014, up sharply from VND4.3 billion in the same period and decreased VND7 billion compared with the previous review report. ITA s EPS in 6 months was only VND80/share. At the end of June 2014, ITA account receivable was VND1.287 billion for the Energy Development Corporation, Tan Tao investor of Kien Luong Thermal Power Project. This is the amount of land sold in Kien Luong Thermal Power Center. VNE issued individually VND150 billion of bonds General Vietnam Electricity Construction Joint Company announced Board Resolution No approved the issuance of bonds individually. Accordingly, the VNE set up individual plans to release VND150 billion of corporate bonds which did not convert and must have collateral. Maturity was 2 years, the interest rate was updated 6-month/time, it is determined by the interest rate term of 12 months of Vietcombank - Exchanges plus 3.5%/year. The first interest rate was 10.5%/year. Bond s payment period was 6 months/time. Bond s principal payment was 2 years after the date of issuance. However, VNE have the right to redeem the bond before maturity, it was up to VND100 billion. Vietcombank Securities Company is the underwriting company for the VNE. Talking to us, representative VCBS said that it would have the improvement in cash flow and profitability in the last months. According to reports the first 6 months of 2014, the company's net loss was VND48.3 billion (share of losses for shareholders of parent company). The same period of 2014, VNE s net loss was VND1.2 billion. Financial expenses in 6 months of 2014 amounted to VND56 billion, it increased more than VND24 billion over the same period. However, interest expense in the first six months of the company fall slightly over the same period, it was only VND31.3 billion. Although it lose strongly, the cash flow of business in first 6 months of VNE has reached VND26 billion. The cash flow deficited to VND134 billion in the same period. 4 P a g e

5 Rates: Exchange rate(vcb) 29-Aug 03-Sep Change (%) US$/VND 21, , EUR/VND 27, , Yen/VND Trade: External factors US$ mn May-14 Jun-14 Jul-14 Export 12,000 12,400 12,400 Import 12,400 12,400 12,700 Trade Balance (400) - (300) Implement FDI 600 1,150 1,050 In focus Remittances reached USD2.75 Bln in 8 Months at HCMC According to the State Bank of Vietnam - Ho Chi Minh City branch said remittances through banks in the area by the end of August 2014 are estimated to reach USD2.75 billion, up 6.2% year-on-year. Notably, according to statistics, about 70% of remittances have flown into production-business. In August alone, remittances in Ho Chi Minh City area reached USD333 million, nearly double the July s figure. This year, remittances to the city are expected to reach USD4.8-5 billion. According to an expert, although the central bank devalued VND by 1% against USD in mid-june and USD deposit rate is low, the interest rate is still higher compared to the world and tends to be very stable, hence attracting remittances. 5 P a g e

6 Event Calendar: s Bourse Ex-right date MHC OTC 4/09/2014 Extraordinary general meeting 2014 CTB HSX 5/09/2014 Extraordinary general meeting 2014 Event MAS HNX 8/9/2014 The first cash divident payment for 2014, VND4.000/share MBB HSX 10/9/2014 The second share divident payment for 2013, rate 100:3 QPH UPCOM 10/9/2014 AGM 2014 ADP UPCOM 11/9/2014 The second cash divident payment for 2014, VND500/share CTS HNX 12/9/2014 Cash divident payment for 2013, VND600/share DNY HNX 12/9/2014 Cash divident payment for 2013, VND500/share SFN HNX 12/09/2014 Cash divident payment for 2013 and 2014, VND900/share UPC OTC 15/09/2014 Cash divident payment for 2013, VND400/share SHP HSX 16/09/2014 Cash divident payment for 2013, VND800/share 6 P a g e

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