Anticipation of a US Fed rate hike Thursday and resulting foreign outflows seem to be dragging on local investor sentiment.
The Minister of Industry and Trade has just signed Decision 4846 approving a plan to simplify administrative procedures in 2017. Accordingly, the Ministry of Industry and Trade (MoIT) decided to completely remove 15 procedures, such as the certified declaration of imported steel and the certified demand to import steel, and simplify 108 of 443 procedures under MoIT management.
The removal and simplification of nearly 28% of all administrative procedures will help to reduce time and costs for enterprises, attract investment and stimulate business activities. This is one of the biggest measures of the government to reform and improve the business environment. In 2016, the Government has repeatedly emphasized “improving the business environment” as one of its highest priorities. In 2017, the key indicators of the business environment are targeted to reach the average of the ASEAN-4 countries. Although Vietnam's business environment has been improving recently, there are many indicators where it still lags.
PNJ: PNJ's chairwoman reaffirms the company's insulation from DongA, announced impressive 11M results
* In a meeting this afternoon with analysts, PNJ's CEO and Chairwoman, Madame Dung confirmed that, apart from the investment in DongA Bank which has been fully provisioned, PNJ and its BOD will not be affected by the investigation of said bank.
* Regarding 11M 2016 operating results, PNJ recorded a revenue growth of 9% vs 11M 2015. Retail revenue grew 28%, driven by 25 new stores and a SSSG of 10% in 11M 2016. In line with the strong retail revenue growth, PBT posted a 31% increase year over year.
* For FY2016, PNJ estimates revenue and PBT growth of 11% and 205%, respectively, which trails our current forecast.
* Our view remains that the incident related to DongA Bank will not affect PNJ fundamentally. Hence, we reiterate our BUY recommendation with a TSR of 31.5% inclusive of a 2.6% dividend yield.
VCSC Research