Investment Strategy Report – May 2022: BUY THE DIP BUT SELECTIVELY
“Market experienced tough time with bad news on the street of arrestation/investigation. However, we predict the market to be calmer after the severe correction in April given the better outlook of stock market on both fundamental and sentiment perspectives with better transparency after enhancing regulation over fraudulent/manipulative activities. Specifically, market quickly recovered after strong correction with notable events as ACB case, Covid-19, margin call in early of 2021.
Currently, we consider VN Index has attractive valuation as VN Index is trading at 2022F PER of 12.4x (Bloomberg), lower than the 10-year average of 14.9x (c. EPS growth 2022F of 21. For VN30, it is also attractive with trading PE of 12.3x (as of Aug 29th, 2022) and forward PE of 11.1x.
We expect VN Index to move in range between 1,320 - 1,420.
For large-cap stocks, we consider Bank having low exposure to corporate bond as VCB to support the market. Addition, VIC is also a noticeable stock to uplift the market when needed back by the re-bounce of several businesses as mall, hospitality, etc. in post-Covid 19 period along with awaiting catalyst from Vinfast IPO. Moreover, MSN with solid growth perspective along with attractive valuation is also interesting factor.”
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