Investment Strategy Report – April 2022: TAILWINDS FROM AGM AND EARNINGS SEASON
“Currently, the abundant of money flows led by F0 investors drive up valuation of mid and small-cap stocks rapidly. However, these stocks quickly faced profit taking pressure when business performance remained sluggish as happened in Q4 2021. Therefore, we foresee further correction if there is no improvement over fundamental prospect after AGM season. Moreover, the incentive of authorities to control market makers in high speculative stocks as happened with FLC case is one inherent signal.
Eventually, VN30 stocks with good fundamental and attractive story is one of good choices given the current acceptable gap between VN30 and VN Index (17 points as of March 31st ), below the average level of Q1 2022 and during 2012 – 2016. At end of March 31st, VN30 was traded at 15.9x and forward PE of under 14x given the nearly of 20% EPS growth in next 12 months.
We expect VN Index to move in range between 1,480 - 1,570.
For large-cap stocks, we consider Steel and Banks to partly support the index slightly given good margin outlook in next two quarters and over 30% profit growth along with stake issuance story, respectively. Addition, Technology stocks are also expected well with the momentum from digital transformation helping to support this year's profit story. Fisheries will partly support the market, following good momentum of export market.”
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.