Under the current global context, it will be hard for Vietnam to “swim against the tide”. The positive point is that the market valuation reversed to a relatively more reasonable level after the correction in 2018. VNIndex’s is now trading at 16x, 25% lower than its peak in March 2018 to reflect the slower growth expected in 2019.VDSC
However, VDSC believe there is room for growth for Vietnamese industries. The country is going into a restructuring and upgrading phase which focuses on (1) Fighting corruption and institutional reforms, (2) Stabilizing the economy and attracting FDI capital, and (3) Encouraging the development of the private sector and start-ups.
In its base case, the Government expects Vietnam’s GDP growth can be maintained at 6.8-6.9% per annum throughout 2020. The expansion of the middle-class and a young population will bring opportunities to many sectors in the long-term.
For the 61 companies under our coverage (equivalent to 61% market cap in HSX and HNX) VDSC forecasts, for 2019, a 14% average revenue growth and expect net income to increase by 21%.
This year, VDSC focus our stock-picking strategies on three key themes:
- Strong fundamentals, characterized by strong cash positions and low leverage ratios,
- Taking advantage of global trade agreements and disputes, and
- The old story: the SOEs equitization and State divestment.
VDSC statements in the report, “We think the index will fluctuate around the 900-1000 points. In that context, stock picking is what matters. Some stocks are pricier than others”.
In the 129-page Strategy Report, VDSC assesses the Vietnam macro and stock market outlook for 2019, including its main investment themes, our sector preferences and individual analysis of 40+ companies.
2019 Strategy Webinar Invitation
On the back of VDSC’s latest Strategy Report it’s organizing the 2019 Strategy Webinar on Wednesday, January 9, 2019 4:00 PM – 5:00 PM (GMT +7).
VDSC’s research department will present their 2019 Vietnam outlook, their main investment themes, present some of their favorite stocks and answer investors’ questions.
Topics will include:
- Vietnam Macro and Stock Market Outlook 2019
- Investment Strategy and Themes 2019
- Sector and Company Outlook 2019
- Stock Picks for 2019
There will be a Q&A session. A recording will be available if you cannot dial in for the live Webinar.
Join the event to receive our top investment ideas and to learn how VDSC’s strategy will help your investment decisions.
Registration URL: https://goo.gl/xtnJHf