Viet Dragon Securities - HDG - Growth momentum

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Viet Dragon Securities

Duong Lai

HDG - Growth momentum

Q3/2018 results: Profit growth due to the contribution of the residential business. HDG's revenue in Q3 was mainly driven by the handover of two real estate projects, namely Centrosa Garden and Hado Riverside. The hydropower segment’s results hit by seasonality, while the office and hotel segments’ performances are better than our expectation.

Q4/2018 is expected to be peak season for both residential and hydropower businesses, while the office and hotel segments should be stable. In term of revenue booking, HDG will finish the handover of the two-block Orchid in the fourth quarter, bringing revenue and net profit of VND 2,000 billion and VND 330 billion, respectively. HDG with launch three projects, namely Dragon City (Hanoi), Green Lane (Ho Chi Minh City) and Noong Tha (Laos). Regarding the hydropower segment, there will be more contribution from the Nhan Hac plant and the recovery from the Za Hung plant as the rainy season comes back in in Quang Nam. For 2018, HDG aims to generate 15% more of electricity output compared to 2017.

Valuation and Recommendation

Compared to our report published in 2017, we revise HDG’s valuation upward due to new residential projects, including NoongTha, Dragon City and Green Lane. We maintain conservative view on the success of these launching due to less favorable location. Our target price is VND38,500/share and anticipates a cash dividend of VND500 per share in the following 12 months, 20% higher than the closing price on November 12, 2018. We have a BUY rating on the stock.

12/11/2018 10 EN

Provider

Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Duong Lai

Other Reports from Viet Dragon Securities

Phuong Nguyen

Phuong Nguyen

CONTENTION

The market made an effort to hold the MA(20) area despite an intraday decline. Liquidity increased compared to the previous session, indicating that supply is increasing and putting pressure on the market, but supportive cash flow temporarily still made an effort to lift the market. The market continues the process of testing its ability to stabilize at the MA(20) area, but temporarily, supply is somewhat overshadowing cash flow. For the market to truly stabilize and have the momentum to return to an upward trend, cash flow needs to make a greater effort to absorb supply and help the market ...

4h / 14m 4h / 14m 10 EN

Phuong Nguyen

Phuong Nguyen

EFFORT TO HOLD ONTO GAINS

The market made an effort to gain points and slightly surpassed its MA(20) line, at 1,663 points. Liquidity decreased compared to the previous session, indicating that supply is temporarily not putting significant pressure on the market, but supportive cash flow remains cautious at the MA(20) area. The market is still in the process of testing its ability to stabilize at the MA(20) area. For the market to truly stabilize and have the momentum to return to an upward trend, cash flow needs to make a greater effort to absorb supply and help the market to gradually stabilize above its MA(20) lin...

September 30, 2025 September 30, 2025 10 EN

Trang To

Trang To

HDB – Robust growth based on the potential for credit expansion

• Consolidated PBT in Q2/2025 reached VND 4.7 trillion (+14% YoY), completing 47% of the full-year target. HDB’s consolidated profit this quarter grew at a moderate pace, although total operating income increased strongly by 40% YoY, as the bank significantly raised provisioning, up nearly 270% YoY. • We revise our 2025F consolidated PBT forecast to over VND 20.3 trillion, up 22% YoY, with key assumption changes including (1) credit growth rising to 25.9%, (2) NIM adjusted down by 10bps to 4.7%, (3) non-interest income expanding 33% versus the previous forecast, and (4) credit cost increasing...

September 30, 2025 September 30, 2025 7 EN

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HDG - Growth momentum

CONTENTION

EFFORT TO HOLD ONTO GAINS

HDB – Robust growth based on the potential for credit expansion

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