Viet Capital Securities Joint Stock Company

Luan Nguyen

Independent Insight Provider

Equity Bottom-Up

Petrovietnam Drilling And We / Equity Bottom-Up

With OPEC production cut, oil stocks will benefit as oil prices recover. This is our first post on oil &amp; gas companies in Vietnam. Investors need to look beyond current earnings. Vietnam’s oil consumption demand still enjoys a good growth rate thanks to the economy growing at a fairly high level (5-6%) per year. Currently, 2/3 demand for Vietnam’s petroleum products are still imported and this opens up opportunities for O&amp;G industry companies to increase production capacity. The market uncertainty still affects business operations of PVD in the next 1-2 years, but in the long-term, from the end of 2018 onward, we believe that PVD will show some signs of improvement when oil prices exceeds USD60/barrel level. Besides, the end of 2018 and 2019 will be the time for a series of O&amp;G projects such as Ca Rong Do, Block B O Mon... going into operation. Hence, it will be a solid foundation for PVD to rediscover its growth potential.

With OPEC production cut, oil stocks will benefit as oil prices recover. This is our first post on oil &amp; gas companies in Vietnam. Investors need to look beyond current earnings. Vietnam’s oil consumption demand still enjoys a good growth rate thanks to the economy growing at a fairly high level (5-6%) per year. Currently, 2/3 demand for Vietnam’s petroleum products are still imported and this opens up opportunities for O&amp;G industry companies to increase production capacity. The market uncertainty still affects business operations of PVD in the next 1-2 years, but in the long-term, from the end of 2018 onward, we believe that PVD will show some signs of improvement when oil prices exceeds USD60/barrel level. Besides, the end of 2018 and 2019 will be the time for a series of O&amp;G projects such as Ca Rong Do, Block B O Mon... going into operation. Hence, it will be a solid foundation for PVD to rediscover its growth potential.

PVD Will Benefit from OPEC Production Cut

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Asia’s leading multi-asset exchange

Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Thematic (Sector/Industry)

SGX lists four Upstream Coal Plays: Geo Energy Resources, Resources Prima Group, BlackGold Natural Resources and Golden Energy &amp; Resources.Geo Energy Resources has been the strongest performer among the four upstream plays in the 2016 year to date with a 37.9% gain. On 12 August,  Geo Energy Group reported that for the six months ending 30 June 2016, company revenue was US$33 million compared to US$10 million for the same period a year ago.

SGX lists four Upstream Coal Plays: Geo Energy Resources, Resources Prima Group, BlackGold Natural Resources and Golden Energy &amp; Resources.Geo Energy Resources has been the strongest performer among the four upstream plays in the 2016 year to date with a 37.9% gain. On 12 August,  Geo Energy Group reported that for the six months ending 30 June 2016, company revenue was US$33 million compared to US$10 million for the same period a year ago.

Geo Energy Resources Led Upstream Coal Plays in 2016 YTD

Frontier and emerging markets (Vietnam)

Dylan Waller

Nomadic Equity

VinaCapital Vietnam Opportunity Fund / Equity Bottom-Up

VinaCapital's VOF, the largest and most liquid closed end fund in its peer group, has successfully completed its migration from London's AIM to the main board of the London Stock Exchange.  I think this fund is a most appropriate stepping stone for funds wishing to gain exposure to Vietnam, without investing directly on Vietnam's stock exchange.

VinaCapital's VOF, the largest and most liquid closed end fund in its peer group, has successfully completed its migration from London's AIM to the main board of the London Stock Exchange.  I think this fund is a most appropriate stepping stone for funds wishing to gain exposure to Vietnam, without investing directly on Vietnam's stock exchange.

VinaCapital VOF Updates: Migration to the Main Board of the London Stock Exchange Was a Success

There has been a strong sell off for oil and gas companies in Vietnam this month, due to the fear created from oil dropping below $30/barrel, and Goldman Sachs has even called for oil to be as low as $20/barrel.  Despite the low oil price environment, <a href="https://www.smartkarma.com/entities/15073" target="_blank" data-smartkarma-citation="entities:15073">Petrovietnam Drilling And We</a>  and <a href="https://www.smartkarma.com/entities/8333" target="_blank" data-smartkarma-citation="entities:8333">Petrovietnam Technical Servi</a> have both been coping well, and are available at extremely low valuation.  As previously mentioned in <a href="https://www.smartkarma.com/insights/2-vietnamese-companies-that-were-successful-despite-the-2008-oil-price-shock-implications-for-2015" target="_blank" data-smartkarma-citation="insights:1946">2 Vietnamese Companies That Were Successful Despite the 2008 Oil Price Shock:</a>…

There has been a strong sell off for oil and gas companies in Vietnam this month, due to the fear created from oil dropping below $30/barrel, and Goldman Sachs has even called for oil to be as low as $20/barrel.  Despite the low oil price environment, Petrovietnam Drilling And We  and Petrovietnam Technical Servi have both been coping well, and are available at extremely low valuation.  As previously mentioned in 2 Vietnamese Companies That Were Successful Despite the 2008 Oil Price Shock:…

Record Low Valuation for Oil and Gas Companies in Vietnam

The low oil price environment has created buy opportunities for companies that are operating in this industry in Vietnam. &nbsp; PetroVietnam Drilling and Well Services(HOSE:PVD) and PetroVietnam Technical Services(HOSE:PVS) are two companies to examine as a means for investors to profit from the current low oil price environment. &nbsp;Valuation for both of these companies is substantially lower than average in Vietnam, and both companies have demonstrated their ability to cope during low oil prices, based on their financial performance during 2009. &nbsp;In this manner, both companies are excellent long term holds, and now is a strategic time for entry, even if oil prices do drop further in the future.

The low oil price environment has created buy opportunities for companies that are operating in this industry in Vietnam. &nbsp; PetroVietnam Drilling and Well Services(HOSE:PVD) and PetroVietnam Technical Services(HOSE:PVS) are two companies to examine as a means for investors to profit from the current low oil price environment. &nbsp;Valuation for both of these companies is substantially lower than average in Vietnam, and both companies have demonstrated their ability to cope during low oil prices, based on their financial performance during 2009. &nbsp;In this manner, both companies are excellent long term holds, and now is a strategic time for entry, even if oil prices do drop further in the future.

2 Vietnamese Companies That Were Successful Despite the 2008 Oil Price Shock: Implications for 2015

Vietnam

PetroVietnam Drilling and Well Services JSC offers technical services to the oil and natural gas industry.  The Company offers drilling and work-over contracting; chartering and operating drilling rigs; well testing, cementing, wire-line logging, tubular handling and other services; and engineering, fabrication, installation, inspection, refurbishment and maintenance of tools.

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Petrovietnam Drilling And We (PVD VN)

PVD Will Benefit from OPEC Production Cut

With OPEC production cut, oil stocks will benefit as oil prices recover. This is our first post on oil & gas companies in Vietnam. Investors...

Luan Nguyen

Geo Energy Resources Led Upstream Coal Plays in 2016 YTD

SGX lists four Upstream Coal Plays: Geo Energy Resources, Resources Prima Group, BlackGold Natural Resources and Golden Energy & Resources.Geo...

Singapore Exchange Ltd (SGX)

VinaCapital VOF Updates: Migration to the Main Board of the London Stock Exchange Was a Success

VinaCapital's VOF, the largest and most liquid closed end fund in its peer group, has successfully completed its migration from London's AIM to the...

Nomadic Equity

Record Low Valuation for Oil and Gas Companies in Vietnam

There has been a strong sell off for oil and gas companies in Vietnam this month, due to the fear created from oil dropping below $30/barrel, and...

Nomadic Equity

2 Vietnamese Companies That Were Successful Despite the 2008 Oil Price Shock: Implications for 2015

The low oil price environment has created buy opportunities for companies that are operating in this industry in Vietnam. PetroVietnam Drilling...

Nomadic Equity

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