May soon surpass 1,290 points

Investment Comments

Agribank Securities (Agriseco): On the technical chart, VN-Index retreated from the uptrend with liquidity exceeding the 20-session average. Many real estate stocks have retested support levels during the fluctuations. Agriseco believes that this could be a shake-off process during the price recovery phase.

Forecasting the development of the session on August 29 and the coming period, VN-Index will have alternating sessions of increase and decrease and create a balance zone around the 1,280 (+-10) point mark.

Agriseco recommends investors to maintain holding their portfolios. Prioritize opening new purchases of large-cap stocks, VN30 is currently discounted to the support zone during the session's correction fluctuations.

VN-Index performance on August 28 (Source: FireAnt).

Asean Securities (Aseansc): The accumulation process to create a price foundation after the increase is still going well, although the psychology of taking profits and resting before the holidays still makes the supply force large. The positive point is that the group of large stocks still plays a rotating role in keeping the market rhythm. The market tends to continue to shrink, creating a shake to shake off short-term cash flow.

Although there are still concerns about potential risks from the possibility of a US economic recession that could negatively affect the market, Aseansc has a very positive assessment of the medium and long-term prospects of the domestic market. Investors should maintain a stable proportion focusing on stocks with good business foundations and profit prospects. Short-term fluctuations will be an opportunity to restructure the portfolio.

Yuanta Vietnam Securities (YSVN): The market may continue to increase in the next session and the VN-Index may retest the 1,290-point threshold. At the same time, the market is still in a period of strong fluctuations in a positive direction and the VN-Index may soon completely surpass the 1,290-point level in the next 1-2 sessions.

In addition, banking and securities stocks have cooled down in the last three trading sessions, while the real estate index may still adjust in the next session, but short-term risks in these three stock groups remain low and there is still much room for short-term growth.

Investment Recommendations

- PNJ (Phu Nhuan Jewelry Joint Stock Company): Positive. 1-year target price is 120,000 VND/share, up 18% from current price.

In July, PNJ achieved VND2,500 billion in net revenue (up 4% year-on-year), while net profit unexpectedly dropped to VND51 billion (down 41% year-on-year ) due to a decrease in retail gross profit margin amid rising raw gold prices, as well as a change in product structure towards products with higher gold content, according to the management board.

Accumulated in the first 7 months of 2024, net revenue and profit after tax were VND 24,621 billion (up 30.8% over the same period) and VND 1,218 billion (up 4% over the same period), respectively.

Despite the poor July business results, SSI Research noted that the third quarter is typically a low season and may not have much impact on full-year estimates (third-quarter profits typically account for only 13-14% of 2022-2023 profits).

SSI believes that the gross profit margin of the retail segment will improve in the fourth quarter when the peak season returns, PNJ will introduce new collections and adjust listed prices to compensate for the increased cost of gold materials.

Therefore, SSI maintains its net profit estimates for 2024-2025 at VND2,200 billion (up 13% YoY) and VND2,570 billion (up 16% YoY), respectively.

- SCS (Saigon Cargo Services Corporation): Neutral. 1-year target price is VND91,900/share, up 11% from current price.

In the second half of 2024, the prolonged disruption in the Red Sea will have a positive impact on the earnings outlook for SCS. SSI forecasts revenue and pre-tax profit of VND949 billion (up 34.6% YoY) and VND760 billion (up 33.5% YoY) for 2024, respectively.

In 2025, SSI expects output to return to natural growth while pre-tax profit will increase by 9.5% year-on-year to VND833 billion. However, SSI noted that post-tax profit growth is expected to slow down as the 50% tax reduction on taxable income will expire in 2025.

The ability to expand operating capacity at Tan Son Nhat airport and Long Thanh international airport will be a driving force for the company's long-term prospects.

Downside risks to the recommendation: Low liquidity of the stock. Additionally, disruptions in the Red Sea easing sooner than expected reduce the relative competitive advantage of air freight.

Source: https://www.nguoiduatin.vn/lang-kinh-chung-khoan-29-8-co-the-som-vuot-muc-1290-diem-204240828162635311.htm