31 Aug 2012 Intellasia Finance Vietnam - Hong Kong Business ...

BUSINESS
Vietnam finance & business 31 August 2012
GIL's consolidated
profit decreased by
46pct in H1/2012
VICEM to buy 130,000
tonnes of coal from
Vinacomin
Steel market share improves despite difficulties. For the first 7 months, the company
sold 352,753 tonnes (+7 percent yoy), increasing its market share marginally by 40bp to
13.6 percent, and narrowing the difference between the company and the largest domestic
steel producer from 2.4 percent to 1.9 percent. HPG's steel average selling prices
have fallen less than the world average (-4 percent vs. -9 percent ytd). Given this, HPG
has proven their strong market position and marketability of their steel. For 2H, with
loosening monetary policy, the steel industry is forecasted to improve and we believe
HPG, as an integrated steel producer, will benefit most.
Coke division remains a burden on company's asset base. Shanghai market coke price
has fallen by 12 percent ytd from low demand for construction steel. The fall in coke
price has delayed operation of the second phase of the company's coke factory (350k
tonnes/annum). Even from 2013, when the second phase of the BOF factory is in operation
(500k tonnes/annum), and runs at full capacity, the coke factory only needs to run
at 56 percent utilisation rate to meet the BOF feedstock demand. The remaining capacity
will depend on world coke demand outlook.
Mandarin Garden: cash drag. Queries about the sale status and cash collection schedule
of the project were not disclosed by the company. According to the 1H financial
statement, the company has collected an estimated VND842 billion, vs. the estimated
cash outflow of VND2,400 billion. With the estimated total investment of VND4,500
billion for the project, we expect the company to spend an average of VND1,050 billion/annum
for the project until 2013. The uncertainty in the cash collection and the difficulty
of real estate project worries us about the cash status of the project and the
company as a group.
1H12 results were in line with our forecast. HPG's achieved 46 percent of our revenue
and 51 percent of net profit forecasts. Compared with 1H11, revenue dropped 7 percent
and net profit dropped 46 percent. However, these numbers were expected (in
line with company guidance) and have been priced in. We revise down our full year
revenue forecast by 4 percent, adjusting for a slight drop in steel prices (-4 percent), but
leave our net profit forecast unchanged at VND1,024 billion, translating to EPS of
VND3,071 and forward P/E of 8.2x, or 4 percent higher than historical P/E of 7.9x.
http://stoxplus.com/News/89595/1/179/hpg-vcsc-recommends-to-buy-hpg-on-valuation.stox
31/AUG/2012 INTELLASIA | STC
Binh Thanh Import-Export Production And Trade JSC (coded GIL) has announced its
consolidated financial statements after revising for Q2/2012.
In Q2/2012, GIL reached 237.8 billion dong of revenue, up 37.3 percent year-on-year.
However, due to its increase in cost price, GIL's consolidated profit has decreased by
8.5 percent.
In addition, GIL's financial cost, administration cost strongly increased in Q2/2012. Its
profit after tax was 490 million dong, down 97 percent year-on-year.
Cumulatively in the first 6 months, GIL reached 428 billion dong of revenue, up 46.6
percent compared with H1/2011. Of which, revenue from general sales was 373 billion
dong (accounting for 87 percent total revenue), up 33 percent. Moreover, GIL received
nearly 37 billion dong from selling dressmaking products which its revenue in H1/
2011 did not have.
GIL's profit after tax reached 17.7 billion dong, down 46.4 percent. GIL explained that
it was due to increase in interest expenses, transportation cost and fuel price and ineffective
new workers.
GIL has completed 48 percent of total revenue plan (900 billion dong) and 32.2 percent
of profit plan (55 billion dong).
31/AUG/2012 INTELLASIA | BAO QUANG NINH
Vicem Materials Transport Cement JSC - COMATCE (of Vietnam Cement Industry
Corportation - VICEM) has registered to buy 130, 000 tonnes of coal from Vietnam National
Coal - Mineral Industries Holding Coporation Limited (Vinacomin).
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