LIEN VIET POST JSC BANK (LPB: UPCOM)

HOLD – 1Y Price Target: VND 14,300 Mai Anh Dinh

anhdtm@ssi.com.v
Current price: VND 13,100

Linh Nguyen LISTING REPORT

linhntt1@ssi.com.vn
+84-24 3936 6321 ext. 679 Strong growth amid numerous uncertainties
05 December 2017
LPB started listing its 646 million shares onto the Upcom on October 5 th, 2017. At present,
BANKING - VIETNAM the bank is implementing a plan to increase its chartered capital to VND 7.5 trillion.

Key figures The merger with VPSC in 2011 brought about great advantages to LPB in terms of its
Market cap (USD mn) 399
transaction network. By June 2017, the LPB network ranks fourth in the entire banking
system, behind Agribank, Vietinbank, and BIDV; and much wider than other private banks.
Market cap (VND bn) 9,072
Outstanding shares (mn) 685
The bank has experienced a period of strong expansion, with CAGR of total assets and
52W high/low (VND 1,000) 14.7/11.3
lending in the 2011-2016 period amounting to 20.4% YoY and 44.2% YoY respectively. LPB
Foreign ownership (%) 4.66 is now amongst the top 10 largest private banks in terms of assets, within the top 15
Foreign ownership limit (%) 5 rankings in terms of owner’s equity. However, growth did not accompany profitability, as
Management ownership (%) N.a PTB was on a downtrend until 2016 due to high operating and provision expenses.
Source: SSI Research
Performance Starting in 2016, we saw a great improvement in the bank’s profitability, with the average
ROE in 2016 and 1H 2017 soaring to 13.3% and 16.2% respectively. This was primarily
VND bn 15A 16A
driven by (1) robust growth in both credits and deposits, (2) a reduced cost to income ratio
Total equity 7,601 8,332
(CIR) and (3) nearly flat provision expenses for credit losses.
Total assets 107,587 141,865
Customer deposits 77,629 110,985 We see great potential for growth of LPB given the advantages of its vast ranging network, if
Outstanding loans 55,470 78,706 the bank is able to expand its retail lending more aggressively. Currently, the bank’s loan
NPL ratio 1.0% 1.1% book structure has not yet shown that it is a retail-oriented bank while its products have not
PBT 422 1,348 yet differentiated from other retailed banks.
PAT 350 1,063
ROA (%) 0.3% 0.9% Furthermore, in addition to asset quality concerns and the future jump in in incurred
ROE (%) 4.7% 13.3%
expenses in relation to network expansion, we are also concerned about the possible
dilution of the bank’s stock from a 10.6% issuance of VND 1,000 bn convertible bonds to
outside investors in 2018.
Company Snapshot
Lien Viet Post JSC Bank (LPB: Upcom) was established in
We estimate the fair value of the stock at VND 14,300 per share, equivalent to a forward
2008 as a private bank with charter capital of VND 3,300
billion. In 2011, LPB merged with Vietnam Postal Savings PBR of 2018 at 1.2x based on an adjusted 2018 BVPS of VND 11,920. With the latest
Service Company (VPSC), and VNPost became the bank’s closing price of VND 13,100 per share, the upside premium is 9.2%, ranking the stock as a
new major shareholder. As a result, LPB benefited from the HOLD recommendation.
nationwide network of post offices. In October 2017, LPB
started trading on Upcome. As of 30 Sep 2017, LPB’s total
assets reached VND 148 trillion.

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Key figures in 2015 – 2018F

Financials (VND bn) 2015 2016 YoY (%) 9M 2017 2017F YoY (%) 2018F YoY (%)
Total Assets 107,587 141,865 31.9% 148,049 149,171 5.1% 172,879 15.9%
Gross Loan 56,165 79,676 41.9% 94,867 96,408 21.0% 116,654 21.0%
Customer Deposit 77,629 110,985 43.0% 122,444 122,813 10.7% 145,817 18.7%
Shareholders’ Equity 7,601 8,332 9.6% 9,141 10,291 23.5% 11,817 14.8%
Pretax Profit 422 1,348 219.4% 1,434 1,667 23.7% 1,947 16.8%
Net Profit 350 1,063 203.8% 1,126 1,334 25.5% 1,557 16.8%
NPL (%) 0.86% 1.08% 1.19% 1.30% 1.30%
BVPS (VND) 12,209 14,215 14,150 13,722 14,068
Adjusted BVPS (VND) 15,318
Avg ROA (%) 0.34% 0.85% 0.78% 0.92% 0.97%
Avg ROE (%) 4.67% 13.34% 12.89% 14.32% 14.09%

Source: Company, SSI Research

Lien Viet JSC Bank, the precedent of Lien Viet Post JSC Bank (LPB), was established in 2008 as a
private bank. In July 2011, Vietnam Post Corporation (VNPost), a State-owned enterprise, became
one of the Bank’s major shareholders alongside Him Lam Corporation, by merging the total value of
the Vietnam Postal Savings Service Company (VPSC), a subsidiary of VNPost, into Lien Viet Bank,
along with some additional cash. The bank then changed its name to Liet Viet Post Bank, and became
the first postal bank in Vietnam.

In 2017, Him Lam Corporation divested entirely from its 97 million shares in LPB, as the chairman of
Him Lam Corporation was transitioning to become the chairman of Sacombank. Currently, 25.29% in
LPB shares is owned by 11 institutional shareholders, with VNPost as the largest, owning 12.54% of
the bank.

LPB shareholders structure

Vietnam Post

12%
Nguyen Duc Huong
5%
H.T.H Company Limited
5%

4% Nguyen Dinh Thang

2%
2% Vietnam Bank for Agriculture and
70% Rural Development

Khai Hung Company Limited

Others

Source: Company, SSI Research

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Total Assets, by Bank (VND tn) Total Equity, by Bank (VND tn)

1,200 70.0

1,000 60.0

50.0
800
40.0
600
30.0
400
20.0
200
10.0

-- --
SHB
VCB

TPB
BID

VIB
CTG

HDB
TCB
STB
MBB

LPB
SCB

ACB

VPB

EIB

VCB

SHB
BID

VIB

TPB
CTG

HDB
STB

MSB

LPB
TCB
MBB

VPB
SCB
ACB

EIB
2016 1H 2017 2016 1H 2017

Source: Company, SSI Research

The Bank is concentrating on the retail banking segment to take advantage of its nationwide postal
network, which has played a large part in the bank’s operations. By the end of Q3 this year, total loans
stepped up to VND 95 tn, up 22% YTD, of which VND 14 tn or 14.7% was lent through the postal
channel. Out of VND 122 tn in customers’ deposits, VND 40 tn, or 32.8%, was raised through the
postal channel. The bank targets to increase the number of transaction offices at the district level,
from the current 200 to 700 by the end of 2019, and this will in turn increase operating expenses for
the bank.

After 9 years of operation, LPB is now amongst the top 10 largest private banks in terms of assets.
The Bank is within the top 15 rankings in the sector in terms of owner’s equity. The size of the bank
can be compared to listed peers like Eximbank (EIB: HSX) or Vietnam International Bank (VIB:
Upcom). The market capitalization of the bank is at VND 9.33 tn (~$406mn USD) and foreign room is
locked in at 5%. The bank plans to sell a 25% stake to foreign strategic investors.

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Transaction network, by Bank Lien Viet Post Bank NIM

5.00%
CTG 1,120

BID 1,006 4.50% 4.55%

LPB 1,000 3.86%

4.00%
3.84%
STB 563
3.60%
3.50%
SHB 500
3.23%
VCB 496 3.00% 2.94%
MBB 408
2.50%
-- 200 400 600 800 1,000 1,200 2012 2013 2014 2015 2016 1H 2017

Source: Company, SSI Research

The merger with VPSC brought about great advantages to LPB in terms of its transaction network. By
June 2017, the bank was providing banking products and services through its 188 transaction offices
and 1,067 postal transaction offices across 63 cities representing all provinces in Vietnam. The LPB
network ranks fourth in the entire banking system, behind Agribank, Vietinbank, and BIDV; and much
wider than other private banks. LPB and VNPost signed a 50 year cooperation agreement which
allows LPB exclusivity in being the only bank permitted to provide postal depositor services and other
banking services throughout the more than 10,000 post offices owned by VNPost.

Continuous growth but low profitability

The bank focuses on retail banking, and more specifically targets individuals and household
businesses/SMEs, with a particular preference in operating in the agriculture sector, leveraging its
footprint in each province to extend its range of retail banking services to rural and remote areas via
the post office network. By the end of 2016, retail lending contributed 36% to the bank’s total loan
book. Of which, total retail lending through the post office network attained VND 6.871 tn,
accounting for 24% of total retail lending nationwide. On the deposit side, the bank has a large
amount of low-cost demand deposits from its cooperation with Vietnam Pension Fund, EVN, Vietlot,
and Vietnam General Customs. By 1H 2017, the Bank’s proportion of demand deposits to total
deposits came to 30.3%, the second highest in the system after MBB (32.3%), and higher than VCB
(26.6%),

The bank has experienced a period of strong expansion, with CAGR of total assets and lending in the
2011-2016 period amounting to 20.4% YoY and 44.2% YoY respectively. However, growth did not
accompany profitability, as PTB was on a downtrend until 2016 due to high operating and provision
expenses. During this downtrend period, the bank had made significant investments in the area of
network expansion and technology, which are to yield profit in later years. At the same time, the
proportion of non-earning assets over total assets remained quite high at over 11% on average during
2012-2015. While the proportion reduced in 2016 to 4.4% of total assets, interest and fees receivable

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still totaled VND 5.579 tn, accounting for 3.9% of total assets, and impeding profitability of the bank.
As a result, LPB ROAE during the 2013 – 2015 period is quite low, averaging at 6.3%.

Outstanding loans (VND bn) Customer deposits (VND bn)

100,000 140,000
90,000
120,000 CAGR = 28%
80,000 CAGR = 36.4%

70,000 100,000

60,000

VND billion
VND billion

80,000
50,000
60,000
40,000
30,000 40,000
20,000
20,000
10,000
-- --
2012 2013 2014 2015 2016 3Q 2017 2012 2013 2014 2015 2016 3Q 2017

Source: Company, SSI Research

A new period of strong recovery from 2016

Starting in 2016, we saw a great improvement in the bank’s profitability, with the average ROE in
2016 and 1H 2017 soaring to 13.3% and 16.2% respectively. FY2016 PBT was VND 1.348 tn, more
than double that of the FY2015 amount of VND 422 bn. This was primarily driven by (1) robust
growth in both credits and deposits, (2) a reduced cost to income ratio (CIR) and (3) nearly flat
provision expenses for credit losses.

As expected from a smaller bank, LPB has grown tremendously in terms of both lending and deposits,
at 41.9% YoY and 43% YoY respectively in FY2016. This led to a 53.6% YoY growth in net interest
income. We calculate that FY2016 NIM was 3.86%, much higher than the industry average of 2.8%,
and fairly high compared to peers (similar to that of MBB), likely owing to high returns from retail
lending and low-cost funding alike. FY2016 pure LDR was 72%, which is low compared with the
industry average of 87.74%, and implies additional room for lending growth to exceed deposit growth.
This is a striking similarity to the situation in 3Q 2017, when lending rose by 19% YTD and deposit
increased by only 10.3% YTD.

In 2016, non-interest income recorded a loss of VND 152 bn due to a VND 222 bn loss in disposal of
investment securities. There was also a VND 143 bn loss classified as other activities, which is
unfortunately a non-disclosed item. Similar to smaller size banks, FY2016 CIR was at 52.5%, which
was an improvement from 62.8% in FY2015. FY2016 provision expenses for credit losses came to
VND 492 bn, nearly flat compared to that of FY2015. Fees income was modest for the Bank, as it has
been providing some services free of charges in previous years to attract customers. The bank said
that it would start collecting fees in 2018, which is expected to improve non-interest income of the
bank.

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Profit before tax (VND bn) Equity and ROAE

1,600 10,000 16%

9,000 14%
1,400
8,000
12%
1,200 7,000
6,000 10%
1,000

VND billion
VND billion

5,000 8%
800
4,000 6%
600 3,000
4%
400 2,000
1,000 2%
200
-- 0%
-- 2012 2013 2014 2015 2016 3Q 2017
2012 2013 2014 2015 2016 3Q 2017
Equity ROAE

Source: Company, SSI Research

By Q3 2017, total assets reached VND 148 tn, up 4.4% YTD, while PBT reached VND 1.434 tn, up
65.7% YoY and achieving 95.6% of the annual plan. NIM in 1H 2017 is unchanged from 2016 levels,
and remains high. CAR is about 11%, significantly down from 13.23% in 2016.

However, the bad debt legacy remains to be resolved…

By 1H 2017, the bank has about 43.6% of its loan book concentrated in the real estate and
construction sector, which in our view raises concern. LPB has struggled to deal with its low-quality
assets including NPLs and receivables, which was partly attributable to the low profitability of the
bank in previous years. By 3Q 2017, the bank had net VAMC bonds balance totaling VND 1.086 tn,
and equivalent to 1.14% of its loan book, a ratio quite low compared to peers such as STB (20.1%),
EIB (4.75%), and SHB (3.66%). LPB plans to complete making provisions for its VAMC bonds by
2018.

The Bank’s reported NPL ratio during 2012 – 2016 was generally lower than peers, with the loan loss
coverage ratio having been maintained at high levels (128% in 2015, 109% in 2016, and 105% as of
3Q 2017. However, we note that LPB has interest and fee receivables amounting to VND 3.052 tn.
Albeit the amount being reduced significantly from previous years, the receivables are still equivalent
to 3.22% of its loan book and 26.7% of its 2017 annual total interest and fee income. This is a huge
risk, as the spectre of outstanding loans associated with the interest and fees receivables are at risk to
be categorized as non-performing loans in the coming months. The legacy of NPLs, though rigorously
handled, nevertheless still exists. We think the bank will have to deal with the spectre of NPLs hanging
over its head for the next 2 years.

The bank also posted a significant amount of receivables, with the majority of them being prepaid
operating expenses in nature.

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NPL Cost ratios

1,200,000 3.0% 70%

2.71%
1,000,000 2.5% 60%
2.48%
50%
800,000 2.0%
40%

VND billion
600,000 1.5%
1.23% 30%
1.19%
400,000 1.08% 1.0%
0.88% 20%

200,000 0.5% 10%

-- 0.0% 0%
2,012 2,013 2,014 2015 2016 3Q 2017 2012 2013 2014 2015 2016 3Q 2017

NPL NPL ratio CIR Provision expenses/PPOP

Source: Company, SSI Research

Capital raising plan

The bank is implementing its plan to raise capital to fuel its future expansion, including VND 1.040 tn
of shares in FY2017, with the ex-right date of November 14, 2017. Details are as follows:

 Issuance of 38.76 million shares, equivalent to VND 387.6 bn, to current shareholders issued in
the form of stock dividends for FY2016, at 6%.

 Right issue of 32.946 million shares at par, equivalent to VND 329.46 bn, or 5.1% of current
outstanding shares to current shareholders.

 New issuance of 32.294 million shares at par, equivalent to VND 322.9 bn, or 5% of current
outstanding shares in an ESOP program to bank staff.

The bank recently delayed its plan to issue VND 2 trillion in convertible bonds into 2018. Of which,
VND 1 tn will be offered to current shareholders and the remaining VND 1 tn will be offered to outside
investors, equivalent to a dilution ratio of 10.6% . The convertible bonds will be convertible into
ordinary shares after one year.

2017 & 2018 Estimates

With the assumption that LPB successfully raises VND 1.04 tn of equity capital as planned in 2017,
for the whole year of FY2017 we forecast PBT at VND 1.667 tn, up 23.7% YoY, with PAT at VND
1.334 tn, up 25.5% YoY, driven by both a 21% YoY expansion in lending, and a high NIM at 3.91%.
Total assets and customer deposits are projected to grow by 5.1% YoY and 10.7% YoY respectively.
2017 BVPS is estimated at VND 13,722.

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For FY2018, we assume all convertible bonds are issued as planned. We forecast customer deposit,
lending, and total assets to grow strongly by 18.7%, 21%, and 15.9% respectively, thanks to strong
growth of Tier 2 capital. Total operating income is forecasted to grow by 21.2% YoY to VND 6.152 tn,
driven by both interest income and fee-based services derived from retail lending expansion. These
NIM metrics are typically higher, and a higher LDR for the bank will apply. This helps the bank to save
on expenses related to fundraising activities. CIR is forecasted to stay at 52%, as the bank plans to
rapidly expand the network by upgrading postal offices to bank transaction offices.

We estimate the bank has to make provision for bad debt, at the amount of over VND 1.006 tn in
2018, up 31% YoY, of which VND 650 bn is purposed to clear away the remaining VAMC bonds.
Consolidated PBT of LPB is forecasted at VND 1.947 tn, up 16.8% YoY. 2018 EPS and BVPS are VND
2,035 and VND 14,068 respectively.

Valuation & Investment view

We see great potential for growth of LPB given the advantages of its vast ranging network, if the bank
is to expand its retail lending more aggressively. Currently, the bank’s loan book structure has not yet
shown that it is a retail-oriented bank while its products have not yet differentiated from other retailed
banks.

Furthermore, in addition to asset quality concerns and the future jump in in incurred expenses in
relation to network expansion, we are also concerned about the possible dilution of the bank’s stock
from a 10.6% issuance of VND 1,000 bn convertible bonds to outside investors in 2018.

In calculating the adjusted 2018 forward BVPS, we take into account assumptions of a successful
2018 issuance of VND 2 tn in convertible bonds, and assume that the 12% dividend issued in 2017
will be paid out by way of stock. The bank recorded a significant amount of receivables and other
assets in the balance sheet, with the majority of them being prepaid operating expenses in nature. We
deduct these prepaid expenses from the book value. The adjusted 2018 BVPS of LPB is estimated at
VND 11,920.

The bank has another upside potential from the selling of 25% stake to strategic foreign shareholders.
However, we assume that this would happen after 2018.

At today’s closing price of VND 13,100, the stock is trading at a 2018 PBR of 1.1x, lower compared
to peers’ but reasonable given its large assets of uncertain quality. At the targeted PBR of 1.2x and
using the adjusted 2018 BVPS, we estimate fair value of the stock comes to VND 14,300 per share,
equivalent to an upside of 9.2%. We therefore recommend a HOLD for LPB.

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APPENDIX: ANNUAL FINANCIAL STATEMENTS

VND Million 2015 2016 2017F 2018F

Balance Sheet
+ Cash on hand, gold and gemstones 480,567 639,592 1,139,309 1,567,750
+ Balances with the SBV 1,885,088 12,219,567 2,701,885 3,207,981
+ Balances with and loans to other CIs 5,423,331 9,277,203 5,918,698 3,847,154
+ Trading securities - - - -
+ Derivatives and other financial assets 34,196 19,369 19,369 19,369
+ Loans and advances to customers 55,470,066 78,705,746 94,984,353 114,826,901
+ Investment securities 32,159,897 33,246,425 35,795,953 39,838,760
+ Long-term investments 324,731 324,731 324,731 324,731
+ Fixed assets 1,172,472 1,255,165 1,405,785 1,574,479
+ Investment property - - - -
+ Other assets 10,637,037 6,177,457 6,880,424 7,671,965
Total Assets 107,587,385 141,865,255 149,170,506 172,879,091
+ Amounts due to the Government and the SBV 6,344,833 310,737 360,411 326,657
+ Deposits and borrowings from other CIs 11,199,634 14,796,745 5,918,698 2,959,349
+ Deposits from customers 77,628,984 110,984,894 122,812,938 145,817,336
+ Derivatives and other financial liabilities - - - -
+ Financed funds, trust funds and borrowings from other credit
1,094,500 1,107,950 1,124,569 1,141,438
institutions
+ Valuable papers issued 2,000,000 4,100,000 6,191,555 6,191,555
+ Convertible bonds - - - 2,000,000
+ Other liabilities 1,718,914 2,233,044 2,471,027 2,625,312
Total Liabilities 99,986,865 133,533,370 138,879,199 161,061,646
+ Capital 6,523,331 6,523,331 7,563,331 8,463,331
+ Reserves 713,468 867,572 1,134,311 1,445,768
+ Foreign exchange differences - - - -
+ Asset revaluation differences - - - -
+ Retained earnings 363,721 940,982 1,593,665 1,908,345
Total Shareholders' Equity 7,600,520 8,331,885 10,291,308 11,817,444
Minority Interests - - - -
Total Liabilities, Shareholders' Equity & Minority Interest 107,587,385 141,865,255 149,170,506 172,879,091

Growth
Deposit -0.2% 43.0% 10.7% 18.7%
Credit 36.0% 41.9% 21.0% 21.0%
Total assets 6.7% 31.9% 5.1% 15.9%
Shareholders' Equity 2.8% 9.6% 23.5% 14.8%
Net interest income 14.4% 53.6% 25.0% 23.7%
Operating income 17.7% 55.6% 31.1% 21.2%
Operating expense 15.7% 29.9% 29.9% 21.2%
Profit before tax -21.2% 219.4% 23.7% 16.8%
Profit after tax -25.0% 203.8% 25.5% 16.8%

Valuation
P/E 25.0 8.3 6.5 6.4
P/B 1.11 1.02 0.95 093
BVPS (VND) 11,766 12,898 13,722 14,068
Adjusted BVPB (VND) 11,920

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VND Million 2015 2016 2017F 2018F

Income Statement
Net interest income 2,619,903 4,023,770 5,029,962 6,220,634
Non-interest income (132,200) (152,125) 44,490 (68,331)
TOTAL OPERATING INCOME 2,487,703 3,871,645 5,074,452 6,152,303
Operating expenses (1,563,456) (2,031,488) (2,638,715) (3,199,198)
Pre-provision operating profit 924,247 1,840,157 2,435,737 2,953,105
Provision expense (502,310) (492,299) (768,616) (1,006,503)
PROFIT BEFORE TAX 421,937 1,347,858 1,667,121 1,946,603
Corporate Income Tax (72,088) (285,072) (333,424) (389,321)
PROFIT AFTER TAX 349,849 1,062,786 1,333,697 1,557,282
Net profit attributable to the minority interest - - - -
NET PROFIT 349,849 1,062,786 1,333,697 1,557,282
EPS (VND) 524 1,582 2,006 2,035
Cash dividend (VND) 450 400 - -

Capitalization
Capital adequacy ratio - CAR 12.3% 13.2% 11.1% 10.3%
Equity/Total assets 7.1% 5.9% 6.9% 6.8%
Equity/Loans to customers 13.5% 10.5% 10.7% 10.1%

Assets quality
NPL ratio 1.0% 1.1% 1.3% 1.3%
Provision coverage ratio 128.0% 109.3% 113.6% 120.5%

Management
Cost to income ratio - CIR 62.8% 52.5% 52.0% 52.0%
Net operating profit per employee 616 752 812 779
Profit before tax per employee 105 262 267 246
Net operating profit per branch/transaction office 24,631 28,893 25,372 8,789
Profit before tax per branch/transaction office 4,178 10,059 8,336 2,781

Earnings
Net interest margin - NIM 2.99% 3.81% 3.91% 4.19%
Non-interest income/Net operating profit -5.3% -3.9% 0.9% -1.1%
ROA - average balance 0.3% 0.9% 0.9% 1.0%
ROE - average balance 4.7% 13.3% 14.3% 14.1%

Liquidity
Loans to deposits ratio - Pure LDR 70.5% 69.2% 74.7% 76.7%

Source: Company, SSI Research

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ANALYST CERTIFICATION
The research analyst(s) on this report certifies that (1) the views expressed in this research report accurately reflect his/her/our own
personal views about the securities and/or the issuers and (2) no part of the research analyst(s)’ compensation was, is, or will be
directly or indirectly related to the specific recommendation or views contained in this research report.

RATING
Within 12-month horizon, SSI Research rates stocks as either BUY, HOLD or SELL determined by the stock’s expected return relative to
the market required rate of return, which is 18% (*). A BUY rating is given when the security is expected to deliver absolute returns of
18% or greater. A SELL rating is given when the security is expected to deliver returns below or equal to -9%, while a HOLD rating
implies returns between -9% and 18%.

Besides, SSI Research also provides Short-term rating where stock price is expected to rise/reduce within three months because of a
stock catalyst or event. Short-term rating may be different from 12-month rating.

Industry Rating: We provide the analyst’ industry rating as follows:

 Overweight: The analyst expects the performance of the industry over the next 6-12 months to be attractive vs. the relevant broad
market

 Neutral: The analyst expects the performance of the industry over the next 6-12 months to be in line with the relevant broad market

 Underweight: The analyst expects the performance of the industry over the next 6-12 months with caution vs. the relevant broad
market.
*The market required rate of return is calculated based on 5-year Vietnam government bond yield and market risk premium derived from using Relative Equity
Market Standard Deviations method. Our rating bands are subject to changes at the time of any significant changes in the above two constituents.

DISCLAIMER
The information, statements, forecasts and projections contained herein, including any expression of opinion, are based upon sources
believed to be reliable but their accuracy completeness or correctness are not guaranteed. Expressions of opinion herein were arrived
at after due and careful consideration and they were based upon the best information then known to us, and in our opinion are fair and
reasonable in the circumstances prevailing at the time, and no unpublished price sensitive information would be included in the report.
Expressions of opinion contained herein are subject to change without notice. This document is not, and should not be construed as,
an offer or the solicitation of an offer to buy or sell any securities. This report also does not recommend to U.S. recipients the use of
SSI to effect trades in any security and is not supplied with any understanding that U.S. recipients will direct commission business to
SSI. SSI and other companies in the SSI and/or their officers, directors and employees may have positions and may affect transactions
in securities of companies mentioned herein and may also perform or seek to perform investment banking services for these
companies.

This document is for private circulation only and is not for publication in the press or elsewhere. SSI accepts no liability whatsoever for
any direct or consequential loss arising from any use of this document or its content. The use of any information, statements forecasts
and projections contained herein shall be at the sole discretion and risk of the user.

WWW.SSI.COM.VN SAIGON SECURITIES INC. HO CHI MINH CITY HANOI

Member of the Ho Chi Minh
Stock Exchange, Regulated by
the State Securities Commission
72 Nguyen Hue Street,
District 1
Ho Chi Minh City
Tel: (84-28) 3824 2897
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Email: info@ssi.com.vn

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SSI – RESEARCH INSTITUTIONAL RESEARCH & INVESTMENT ADVISORY

CONTACT INFORMATION

Institutional Research & Investment Advisory

Linh Nguyen

Research Manager, Banking

 Tel: (84-24) 3936 6321 ext. 679

linhntt1@ssi.com.vn

Phuong Hoang Hung Pham Giang Nguyen

Deputy Managing Director, Associate Director Associate Director

Head of Institutional Research & Investment Advisory hungpl@ssi.com.vn giangntt@ssi.com.vn

phuonghv@ssi.com.vn

WWW.SSI.COM.VN SAIGON SECURITIES INC. HO CHI MINH CITY HANOI

Member of the Ho Chi Minh
Stock Exchange, Regulated by
the State Securities Commission
72 Nguyen Hue Street, 1C Ngo Quyen Street, Ha Noi City
District 1 Tel: (84-24) 3936 6321
Ho Chi Minh City Fax: (84-24) 3936 6311
Tel: (84-28) 3824 2897 Email: info@ssi.com.vn
Fax: (84-28) 3824 2997
Email: info@ssi.com.vn

Page 12