20160118_BSC_Vietnam Sector Outlook_EN_2016_Part1_Source

2015 Sector outlook.

• We had commented, " Please note that Real estate and Bank are likely to lead VNIndex in 2015, replacing Oil and Gas position”. In fact, at the beginning the year, the banking sector had strong increase, totaled 12.1% in 2015. terms of capitalization, the banking sector was the largest group with the leading role. The proportion of the banking group's capitalization (VCB - CTG - BID - STB - EIB - MBB) increased from 22.85% (05.01.2015) to 27.55% (29.12.2015), in which VCB is the 2nd largest, accounting for 10.28% of total market capitalization. On the other hand, the real estate sector did not grow as we expected, with 2.93% decrease in the year. However, recommended real estate stocks had very good growth VIC (+ 20.37%), DXG (+ 61.02%) and KDH (+ 24.42%).

• In addition, in 2015, the BSC is one of the first securities companies bullish on sectors of IT, seaports, Insurance. With Seaports and insurance sectors, while being less attractive in the eyes of investors, BSC had published the report in June 2015 with Positive rating, before the rise of these sectors in July (link Seaports report, links insurance report).

• We did not assess correctly for sugarcane and tire sectors in early 2015. However, in our update report, we lowered our ratings for tire and sugar and the ability of related stocks to be included in ETF of SBT and BHS (link to report) .We also did not assess correctly for the sector with strongest growth in 2015, which was automobile sector.