DAILY MARKET REPORT VCBS COMMENTARY MARKET SNAPSHOT. Monday, 09 th May, 2016

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1 Monday, 09 th May, 2016 MARKET SNAPSHOT Both indexes slightly corrected. Lower liquidity (if excluded putthrough trading of 23 million TTF share) Erratic net-sold by the Foreign on HOSE focused on VIC. Market Highlights HSX HNX Index /- (%) -0.44% 0.04% (share) 145,287,791 44,138,884 Value (VNDmln) 3, Advancers Decliners Unchanged Foreign Investment HSX HNX Buy (VND bln) Sell (VND bln) Net position (VND bln) VCBS COMMENTARY Following rising momentum in previous week, the first trading session of the week began with a quite inspiring. Many key stocks such as VNM, VCB, GAS, etc moved into plus column. In particular, the news surrounding VNM s dividend payment was considered as a relatively good pillar of the market. However, for the rest of the market, the seller somewhat overwhelmed and gradually washed away the gains of these shares. In afternoon session, market breadth shrank significantly. Slight rising momentum from Oil & Gas and Food Products was not enough to keep the indices in the positive zone as Insurance sector and some large-cap stocks such as HSG, MSN, VCB, etc corrected sharply. Liquidity fell slightly, which indicated that selling off did not occur. On global market, according to China's General Administration of Customs, the trade surplus of China climbed to a three-month high and exceeded all expectations. However, the main reason came from stronger reducing imports compared with weakening exports. Specifically, in April, exports decreased by 1.8% yoy, in contrast to an increase of 11.5% in March, this figure also fell sharply, which was against the forecast of decline 0.1%. Meanwhile, imports fell 10.9%, higher than the forecast of decline 5%. This was the 18th consecutive month China s export-import activity slowed down. Negatively reacting to the information above, CSI300 index fell 2.07% in session May 09. Above movements partly indicated that China's economy is still an issue that investors should monitor closely. We put correction session today with lower liquidity down to technical factors after a series of four consecutive gaining sessions before. Given the fact that hardly any disruptive news recorded, we do not see factors indicating reversal sign. Therefore, we keep our recommendation of keeping a high share rate in the portfolio and consider profit-taking in case VN Index approaches the level of 620 points.

2 TECHNICAL VIEW Indices corrected slightly after strong rallies. High liquidity indicated existing selling pressure. Investors should closely monitor market s reaction, keep share rate in stocks attracting inflows and avoid chasing buy. VN Index VN Index formed a red candle with long shadow reaching the upper of Bollinger Band. The up-trend has not ended. Lower liquidity indicated that selling pressure did not appear. The next candles are likely to cling to upper of Bollinger Band and approach level of 620 before a significant correction. Support level: 600; resistance level: 620. HNX Index HNX Index formed a green candle with narrow body, long shadow approached upper of Bollinger Band. Liquidity fell slightly. The next candles are likely to move sideways in a narrow range. Support level: 80, resistance level: 82 Page 1

3 ENTERPRISE IN FOCUS PAC PAC s 2015 business increased was quite favorable with revenue and EBT growth over the previous year and exceeded the annual plan. Its revenue is VND 2,116.8 bn (+4.5% yoy) and EBT is VND bn (+27.6% yoy, 121%% higher than the year s plan). Financial income in 2015 was little changed from the previous year; however the financial expenses increased by 31.2% yoy, mainly due to realized foreign exchange gains made 28.4 billion, up 2.9 times compared to However, interest expense decreased by 48.7%, while cost of sales decreased by 18.6% yoy (due to changes in the method of accounting under TT200) should have helped EBT VND 121 billion (+27.6% yoy), net income reached VND 90.4 billion (+ 21.6% yoy). PAC sets 2016 target VND 130 billion pre-tax profit on VND 2,440 billion revenue in Cash dividends in 2015 will increase by 10% and 50% bonus. The company has decided to increase the dividend rate in 2015 to 25% in cash, an increase of 10% compared to previous resolutions issued in The company will determine the bonus shares to the shareholders, the ratio of 2:1, sources from capital surplus and investment development funds. The dividend will increase its chartered capital to 465 billion, and is also the main reason why the company only aims dividend of 12% for the year The total capital investment in 2016, the company plans to (1) Investment separate equipment to handle increasing knot battery manufacturing capacity, cost estimates billion. (2) Buy some land position to cater for future developments, costs of 160 billion, which includes (i) Buy two hectares of land in Bac Ninh to build transit depot and offices North branch; (Ii) 9.8 hectares of land next to the factory in Dong Nai Battery 2 in preparation for expanding battery production in the near future. PAC has announced its FS Quarter 1 of 2016, in which revenue totaled VND bn (+10.4yoy, fulfilling 22.2% FY s year) and NBT totaled VND 30.2 bn (+11.3% yoy, fulfilling 23.2% FY s year) and NAT totaled VND 21.9 bn (+12% yoy). EPS trailing by the end of Q1/2016 is about 2,700 VND/share (10% of the fund temporarily excluding benefits under the company charter), P/E trailing is about 15 times. Pinaco s price has risen more than 20% since late March so far, and most likely on the information gained increased 10% cash dividends (2.5% yield) and bonus shares (50%), however the bonus will not alter the P/E. In addition, the company likely will advance dividend for the year by 12% in Q3 or Q4 2016, approximately 4.6% yield (after market value batch diluted share bonus), overall profitability if PAC held from now until the end of the year at around 7.1%, was not really high. We recommend to HOLD shares of PAC. Page 2

4 MARKET STATISTICS (1000) Market supply and demand Buy Aver. Buy (1000) Sell Aver. Sell Aver.B/ Aver.S Last session HOSE 211,716,420 4, ,080,210 4, HNX 66,880,200 5,144 69,958,000 5, Foreign trading Buying value (bn VND) Selling value (bn VND) Top 5 most volatile tickers Top 5 ticker in liquidity HOSE HNX Value Ticker Closing price (1000đ) % change Ticker Closing price (1000đ) % change Code (mln share) % order matchin g Code Value (blnvnd ) % order matchin g Advancers TTF BSC BTT SDN HOT VBC STT PCN PNC LDP Decliners VNH KSS SSC SHI VID HOSE FLC VNM HQC HPG TSC HSG HPG CII KSA FLC HNX SHB DST KLF SHB PVX CVT KLS KLS ITQ TVC Top 5 tickers with largest supply-demand gap Buy- Sell Sell- Buy Ticker +/- (share) Ticker +/- (share) HOSE TSC 4,814,640 BGM 3,462,110 FIT 4,327,750 KSA 2,967,970 ITA 2,911,610 BID 2,496,350 OGC 2,568,260 VHG 2,233,420 TTF 923,260 CTG 2,098,630 HNX DCS 2,149,600 KLF 2,225,600 PVX 1,117,900 SCR 1,008,300 KLS 1,117,700 SHB 783,600 TIG 545,300 PVS 467,600 SPI 402,600 VND 369,600 Top 5 tickers net bought/sold by the foreign Buy- Sell Sell- Buy Ticker +/- (share) Ticker +/- (share) HOSE MBB 906,400 VIC 5,043,033 CII 757,320 FIT 467,000 BID 695,300 DHG 347,673 CTG 587,200 CLW 287,140 VIC 414,030 CTG 269,450 HNX PVS 250,000 KLS 143,500 VGS 249,300 TV2 104,300 PLC 202,600 LDP 101,133 SHB 178,000 PVX 100,000 TV2 104,300 BCC 57,600 Page 3

5 DISCLAIMER This report is designed to provide updated information on the fixed-income, including bonds, interest rates, some other related. The VCBS analysts exert their best efforts to obtain the most accurate and timely information available from various sources, including information pertaining to market prices, yields and rates. All information stated in the report has been collected and assessed as carefully as possible. It must be stressed that all opinions, judgments, estimations and projections in this report represent independent views of the analyst at the date of publication. Therefore, this report should be best considered a reference and indicative only. It is not an offer or advice to buy or sell or any actions related to any assets. VCBS and/or Departments of VCBS as well as any affiliate of VCBS or affiliate that VCBS belongs to or is related to (thereafter, VCBS), provide no warranty or undertaking of any kind in respect to the information and materials found on, or linked to the report and no obligation to update the information after the report was released. VCBS does not bear any responsibility for the accuracy of the material posted or the information contained therein, or for any consequences arising from its use, and does not invite or accept reliance being placed on any materials or information so provided. This report may not be copied, reproduced, published or redistributed for any purpose without the written permission of an authorized representative of VCBS. Please cite sources when quoting. Copyright 2012 Vietcombank Securities Company. All rights reserved. CONTACT INFORMATION Tran Anh Tuan, CFA Tran Minh Hoang Le Thu Ha Head of Research tatuan@vcbs.com.vn Chief Economist tmhoang@vcbs.com.vn VIETCOMBANK SECURITIES COMPANY Investment Analyst ltha_ho@vcbs.com.vn Ha Noi Headquarter Ho Chi Minh Branch Da Nang Branch Phu My Hung Transaction Unit Giang Vo Transaction Unit Can Tho Representative Office Vung Tau Representative Office An Giang Representative Office Dong Nai Representative Office Hai Phong Representative Office Binh Duong Representative Office Floor 12th & 17th, Vietcombank Tower, 198 Tran Quang Khai Street, Hoan Kiem District, Hanoi Tel: (84-4) ext: 140/143/144/149/150/151 Floor 1 st and 7 th, Green Star Building, 70 Pham Ngoc Thach Street, Ward 6, District No. 3, Ho Chi Minh City Tel: (84-8) Floor 12 th, 135 Nguyen Van Linh Street, Thanh Khe District, Da Nang City Tel: (84-511) ext: 801/802 Lawrence Sting Building, 801 Nguyen Luong Bang Street, Phu My Hung Urban Zone, District No. 7, Ho Chi Minh City Tel: (84-8) Floor 1 st, Building C4 Giang Vo, Giang Vo Ward, Ba Dinh District, Hanoi Tel: (84-4) Floor 1 st, Vietcombank Can Tho Building, 7 Hoa Binh Avenue, Ninh Kieu District, Can Tho City Tel: (84-710) Floor 1st, 27 Le Loi Street, Vung Tau City, Ba Ria - Vung Tau Province Tel: (84-64) /75/76/77/78 Floor 6 th, Nguyen Hue Building, 9/9 Tran Hung Dao Street, My Xuyen Ward, Long Xuyen City, An Giang Province Tel: (84-76) F240-F241 Vo Thi Sau Street, 7 th Block, Thong Nhat Ward, Bien Hoa City, Dong Nai Province Tel: (84-61) Floor 2 nd, 11 Hoang Dieu Street, Minh Khai Ward, Hong Bang District, Hai Phong City Tel: (+84-76) Binh Duong Route Phu Hoa Ward Thu Dau Mot City - Binh Duong Province Tel: (+84-76) Page 4