External broker reports(aggregated public sources), Mirae Asset Securities

Mirae Asset Securities

External broker reports(aggregated public sources)

Leading full-service brokerage firm in Vietnam. 

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Equity Bottom-Up

Asia Commercial Bank/Vietnam / Equity Bottom-Up

<ul><li>Regardless of the reduction in asset quality, the ratios of Asia Commercial Joint Stock Bank (ACB) are superior to those of most commercial banks.</li><li>In our view, the economic downturn should result in a short-term provisioning burden, rather than long-term risks, thanks to the strong retail concentration of ACB’s loan book.</li><li>Over the past five years, retail and SME loans consistently accounted for more than 90% of ACB’s loan book(94% as of 2Q23), which would exclude the surprise factor from heavy provisioning pressure resulting from the possible defaults of large corporations during economic turbulence.</li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Regardless of the reduction in asset quality, the ratios of Asia Commercial Joint Stock Bank (ACB) are superior to those of most commercial banks.In our view, the economic downturn should result in a short-term provisioning burden, rather than long-term risks, thanks to the strong retail concentration of ACB’s loan book.Over the past five years, retail and SME loans consistently accounted for more than 90% of ACB’s loan book(94% as of 2Q23), which would exclude the surprise factor from heavy provisioning pressure resulting from the possible defaults of large corporations during economic turbulence.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Asia Commercial Joint Stock Bank (ACB VN) - Cautious Approach Pays Off

Thematic (Sector/Industry)

<p>Credit growth in 9M23 lagged significantly behind annual target set by State Bank of Vietnam (SBV): By end-3Q23, credit growth for the year stood at 6.92%, falling far short of the SBV's expected range of 14–16%.</p><p>This marks the second lowest growth rate in a decade, reminiscent of the banking crisis in 2011–2012.</p><p>High lending rates, gloomy macroeconomic data, and an uncertain economic outlook have become the primary drivers of weak credit demand. </p><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Credit growth in 9M23 lagged significantly behind annual target set by State Bank of Vietnam (SBV): By end-3Q23, credit growth for the year stood at 6.92%, falling far short of the SBV's expected range of 14–16%.This marks the second lowest growth rate in a decade, reminiscent of the banking crisis in 2011–2012.High lending rates, gloomy macroeconomic data, and an uncertain economic outlook have become the primary drivers of weak credit demand. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banking Sector - 9M23 Update and Outlook - Overcoming adversity

<ul><li>Vietnam Prosperity JSCB (VPB), formerly known as Vietnam JSCB for Private Enterprises, was established in 1993.</li><li>The Bank has its core business in mobilizing capital and crediting.</li><li>In addition, VPBank also engages in international banking services, trades foreign currencies, financial investment, risk management and capital protection. </li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Vietnam Prosperity JSCB (VPB), formerly known as Vietnam JSCB for Private Enterprises, was established in 1993.The Bank has its core business in mobilizing capital and crediting.In addition, VPBank also engages in international banking services, trades foreign currencies, financial investment, risk management and capital protection. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Stock Recommendations - Vietnam Market - November 2023

<ul><li>Recently, HSX announced updated component securities (including changes in component stocks and calculation factors) in the VN30 Index and VNDiamond Index baskets.</li><li>In detail, these changes will affect the component weighting in specific baskets.</li><li>Thus, ETFs that are replicating the respective indexes will also have similar structural changes in their baskets of component securities on the rebalancing date. </li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Recently, HSX announced updated component securities (including changes in component stocks and calculation factors) in the VN30 Index and VNDiamond Index baskets.In detail, these changes will affect the component weighting in specific baskets.Thus, ETFs that are replicating the respective indexes will also have similar structural changes in their baskets of component securities on the rebalancing date. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

<ul><li>Credit growth in 1H23 slightly behind full-year target: By end-2Q23, credit growth was low, at 4.7% YTD, which is far behind the annual plan from the SBV of 14-16%.</li><li>The growth rate was the second lowest in the last decade.</li><li>The key reason for the low credit growth was stubbornly-high lending rates. </li></ul><div class="content-highlight"><em>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.</em></div>

Credit growth in 1H23 slightly behind full-year target: By end-2Q23, credit growth was low, at 4.7% YTD, which is far behind the annual plan from the SBV of 14-16%.The growth rate was the second lowest in the last decade.The key reason for the low credit growth was stubbornly-high lending rates. Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Banking Sector - 1H23 Update and Outlook - An Essential Deceleration

Vietnam

Asia Commercial Bank attracts deposits and offers commercial banking services.

Asia Commercial Bank/Vietnam (ACB VN)

Asia Commercial Joint Stock Bank (ACB VN) - Cautious Approach Pays Off

egardless of the reduction in asset quality, the ratios of Asia Commercial Joint Stock Bank (ACB) are superior to those of most commercial banks.

Mirae Asset Securities

Banking Sector - 9M23 Update and Outlook - Overcoming adversity

Credit growth in 9M23 lagged significantly behind annual target set by State Bank of Vietnam (SBV): By end-3Q23, credit growth for the year stood...

Mirae Asset Securities

Stock Recommendations - Vietnam Market - November 2023

Vietnam Prosperity JSCB (VPB), formerly known as Vietnam JSCB for Private Enterprises, was established in 1993. The Bank has its core business in...

Mirae Asset Securities

ETFs Monitor in 4Q23

Recently, HSX announced updated component securities (including changes in component stocks and calculation factors) in the VN30 Index and...

Mirae Asset Securities

Banking Sector - 1H23 Update and Outlook - An Essential Deceleration

Credit growth in 1H23 slightly behind full-year target: By end-2Q23, credit growth was low, at 4.7% YTD, which is far behind the annual plan from...

Mirae Asset Securities