Vietnam Agribusiness: From farm to chopsticks

Vietnam Agribusiness: From farm to chopsticks February 29th, 2008

Horizon Securities

EXECUTIVE SUMMARY VIETNAM has progressed from a nation of chronic food shortages to one of the world’s leading exporters of soft commodities. Vietnam is the biggest export of pepper in world, second biggest for rice, coffee, and cashew nuts, and fourth biggest for natural rubber. Vietnam has only begun to show its potential in the agribusiness sector.

We believe the global agricultural sector is undergoing a major structural change that will affect the entire food value-chain. Increases in global demographics, wealth, and food demand, despite limited natural resources, erratic weather patterns, and declining arable land and water supplies, are resulting in supply-demand pressures across an increasingly wide range of commodities. What’s more, we see these macro trends, which are shaping the world’s agribusiness, revealing themselves in Vietnam. Of the 271 listed companies in Vietnam, there are currently 36 companies involved in the agribusiness value-chain. Together, they add-up to more than 18% of the total market capitalization. Given that the agribusiness sector accounts for more than 20% of Vietnam’s GDP and employs more than 55% the country’s workforce, we built a listed shares weighted agribusiness index, HRS Agri-index1, to track the performance of the companies involved along the food value-chain. We believe Vietnam’s agribusiness companies will face a host of challenges and opportunities from the current dynamics in the global agribusiness sector. Rising local consumption and export demand against supply-side constraints will necessitate farmers to increase yields. We believe this will drive the demand for farm inputs namely fertilizers, seeds, and machinery. We believe that as input costs increase, the ones to benefit will be those that can minimize price pressures from suppliers and/or customers. These are companies that have already started to integrate upstream and capable of securing stable input prices, and companies that have a strong brand name that can pass the cost onto consumers. We believe the rise of supermarkets in Vietnam will affect the whole agribusiness value-chain. As modern procurement systems invariably exert more demanding requirements from processors we see greater demand for cold storage, logistics, warehousing, and processing facilities. As supermarkets tend to source products from medium to large processors and wholesalers, we believe there will be opportunities for a greater level of integration along the supply-chain. Moreover, we believe there is an opportunity for corporations to set up large scale industrial farms and factory farms, as more flexible land reforms have opened the door to land consolidation and accumulation. Finally, we believe there is an opportunity for branded FMCG food products. Added-value food products have had a tremendous growth in 2007; five of the ten fastest growing health and convenience products were food goods. What’s more, brand-aware Vietnamese consumers are buying Vietnamese products; five of the ten fastest growing brands were Vietnamese in 2007.

1 Horizon Securities clients can contact their account manager to get more information on how they can invest in the same proportions set out in any of the HRS Indices.

Horizon Securities Research team Marc Djandji, CFA Head of Research [email protected] +84.90.318.9687 Khoi Pham Analyst [email protected] Phuong Le Analyst [email protected] HRS Agri-index, VN-index, HaSTC index

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Please refer to the important disclosures at the end of this document.


2 Horizon Securities

Table of contents

I. THE END OF CHEAP FOOD............................................................................................... 4 1.1 THE FOOD SUPPLY-DEMAND EQUATION; DEMAND FACTORS................................................. 4 1.2 THE FOOD SUPPLY-DEMAND EQUATION; SUPPLY FACTORS .................................................. 7 1.3 THE FOOD SUPPLY-DEMAND EQUATION; SOFT COMMODITIES ARE TAKING CENTRE STAGE ....... 7

II. CHALLENGES AND OPPORTUNITIES FOR VIETNAM AGRIBUSINESS ........................10 III. LISTED AGRIBUSINESS ................................................................................................14 IV. FARM INPUT..................................................................................................................16

4.1 FERTILIZER SECTOR IN VIETNAM: RELYING HEAVILY ON IMPORTS.......................................16 4.2 CROP PROTECTION ......................................................................................................18 4.3 OPPORTUNITIES FOR THE SEED SECTOR .........................................................................19 4.4 FARMING MACHINERY ..................................................................................................20 4.5 ANIMAL FEED..............................................................................................................21

V. RESOURCE PRODUCERS ..............................................................................................21 5.1 CROP PRODUCTION: OPPORTUNITIES FOR LARGE-SCALE FARMING ENTERPRISES.................21 5.2 CONTRACT FARMING....................................................................................................22

VI. PROCESSING ................................................................................................................22 6.1 DAIRY PRODUCTS: UPTREND DEMAND AND LOW LEVEL OF SUBSTITUTE .............................22 6.2 SUGAR INDUSTRY: UNDER GOVERNMENT’S “PRICE MANAGEMENT”...................................23 6.3 CONFECTIONERY: SEVERE COMPETITION AMONG RIVALS. .................................................25 6.4 AQUACULTURE PROCESSING: VIETNAM’S FOURTH LARGEST INCOME..................................26 6.5 SOFT DRINK: STILL ENOUGH ROOM FOR LOCAL PLAYERS TO GROWTH ................................27

VII. DISTRIBUTION: THE RISE OF SUPERMARKETS ........................................................28 VIII. COMPANIES IN FOCUS...............................................................................................30



Table of figures FIGURE 1. WORLD’S MEAT CONSUMPTION VS. GDP ...................................................................................... 5 FIGURE 2. VIETNAM’S MEAT CONSUMPTION PER CAPITA.................................................................................. 5 FIGURE 3. FISHERIES AND LIVESTOCK OUTPUT VALUE (BLN’VND).................................................................... 5 FIGURE 4. AGRICULTURE, FISHERIES AND LIVESTOCK COMPOSITION ................................................................. 5 FIGURE 5. US GRAINS FOR ETHANOL PRODUCTION......................................................................................... 6 FIGURE 6. US BIOFUELS CONSUMPTION....................................................................................................... 6 FIGURE 7. WORLD’S GRAIN PRODUCTION AND CONSUMPTION.......................................................................... 7 FIGURE 8. WORLD UREA FERTILIZER PRICE ................................................................................................... 9 FIGURE 9. WORLD COFFEE PRICE................................................................................................................ 9 FIGURE 10. WORLD WHEAT PRICE .............................................................................................................. 9 FIGURE 11. VIETNAM FOOD CPI VS. TOTAL CPI ............................................................................................ 9 FIGURE 12. VIETNAM RICE PRICE ................................................................................................................ 9 FIGURE 13. VIETNAM PIG AND PIGLET PRICE ................................................................................................ 9 FIGURE 14. VIETNAM INDUSTRY AND DOMESTIC CHICKEN PRICE...................................................................... 9 FIGURE 15. VIETNAM GASOLINE PRICE......................................................................................................... 9 FIGURE 16. TOP 10 GROWTH CATEGORIES ................................................................................................ 11 FIGURE 17. TOP 10 FASTEST GROWING BRANDS ........................................................................................ 11 FIGURE 18. VIETNAM AGRICULTURE GDP TO TOTAL GDP ............................................................................ 13 FIGURE 19. VIETNAM AGRICULTURE OUTPUT............................................................................................... 13 FIGURE 20. VIETNAM AGRICULTURE EXPORT MIX ......................................................................................... 13 FIGURE 21. VIETNAM AGRICULTURE EXPORT VS. TOTAL EXPORT ..................................................................... 13 FIGURE 22. WORLD ARABLE LAND PER CAPITA............................................................................................ 13 FIGURE 23. VIETNAM ARABLE LAND FOR PADDY .......................................................................................... 13 FIGURE 24. VIETNAM ARABLE LAND FOR PERENNIAL INDUSTRIAL CROPS ......................................................... 13 FIGURE 25. VIETNAM ARABLE LAND FOR ANNUAL INDUSTRIAL CROPS ............................................................. 13 FIGURE 26. HRS AGRI-INDEX.................................................................................................................. 14 FIGURE 27. HRS AGRI-INDEX COVERED STOCKS: VALUATION COMPARABLES .................................................. 14 FIGURE 28. VIETNAM: AGRIBUSINESS VALUE CHAIN..................................................................................... 15 FIGURE 29. LISTED COMPANIES IN FARM INPUT SECTOR............................................................................... 16 FIGURE 30. LOCAL FERTILIZER PRODUCTION............................................................................................... 16 FIGURE 31. VIETNAM’S FERTILIZER IMPORT................................................................................................ 16 FIGURE 32. FERTILIZER PRICES ................................................................................................................ 17 FIGURE 33. LOCAL SUPPLY VS. DEMAND .................................................................................................... 17 FIGURE 34. MARKET SHARE 2007.......................................................................................................... 17 FIGURE 35. MARKET SHARE 2010.......................................................................................................... 17 FIGURE 36. VIETNAM GAS RESERVE AND PRODUCTION ................................................................................. 18 FIGURE 37. GROWTH OF THE BIOTECH CROP MARKET IN THE WORLD.............................................................. 19 FIGURE 38. LIST OF REGISTERED SEEDS IN VIETNAM ................................................................................... 20 FIGURE 39. WORLD PADDY YIELD ............................................................................................................. 21 FIGURE 40. LISTED COMPANIES IN MILK SECTOR......................................................................................... 22 FIGURE 41. VIETNAM: PRODUCTION OF MILK BY PROVINCE ........................................................................... 23 FIGURE 42. LISTED COMPANIES IN SUGAR SECTOR ...................................................................................... 23 FIGURE 43. SUGAR MARKET IS HIGHLY FRAGMENTED .................................................................................. 24 FIGURE 44. DOMESTIC SUGAR PRICE IN THE PAST 2 YEARS........................................................................... 24 FIGURE 45. VIETNAM: TARIFF REDUCTION ROADMAP IN COMPLIANCE WITH WTO ............................................. 24 FIGURE 46. KEY PLAYER MARKET SHARES ................................................................................................. 25 FIGURE 47. LISTED COMPANIES IN CONFECTIONERY SECTOR......................................................................... 25 FIGURE 48. VIETNAM AQUACULTURE EXPORT .............................................................................................. 26 FIGURE 49. PRODUCTION OF AQUATIC PRODUCT.......................................................................................... 26 FIGURE 50. LISTED COMPANIES IN FISHERY SECTOR .................................................................................... 26 FIGURE 51. EXPORTS REPRESENT A SIGNIFICANT PORTION OF AQUACULTURE PROCESSORS’ TOTAL REVENUE........ 27 FIGURE 52. LISTED COMPANIES IN SOFT-DRINK SECTOR............................................................................... 27 FIGURE 53. TRADITIONAL SHOPPING STILL DOMINATES VIETNAM ................................................................... 28 FIGURE 54. …BUT MODERN SHOPPING TREND IS ON THE RISE ...................................................................... 28 FIGURE 55. MODERN TRADING FORM IS CHANGING AGRIBUSINESS VALUE CHAIN ............................................. 28 FIGURE 56. LIST OF MAJOR SUPERMARKETS, HYPERMARKETS AND DEPARTMENT STORES IN VIETNAM ................ 29 FIGURE 57. RETURN ON AGRIBUSINESS STOCKS......................................................................................... 31 FIGURE 58. AGRIBUSINESS SHARES ABSOLUTE PERFORMANCE (TOP 10 COMPANIES) ...................................... 32



I. The end of cheap food We believe the global agricultural sector is undergoing a major structural change that will affect the entire food value-chain. The global macro trends that are shaping the world’s agribusiness are also revealing themselves in Vietnam. Continuous increases in global demographics, wealth, and food demand, despite limited natural resources, erratic weather patterns, and declining arable land and water supplies, are resulting in pressures across an increasingly, wide range of soft commodities. Soaring oil prices have contributed to the increased inflationary pressure of most agricultural crops: 1) by raising input and transportation costs, and 2) by boosting demand for agricultural crops used as feedstock in the production of alternative energies. Hence, we are entering a period of short supply, yet robust global demand for agricultural products and food, resulting in worldwide agflation2. There can be no discussion concerning the current environment affecting agribusiness without mentioning biofuels and China. The recent surge in demand for biofuels and the greater hectarage allocated to biofuels feedstock which followed, coupled with China’s insatiable hunger for animal protein have compounded the current global agflation pressures. We believe these factors, have and will continue to put pressure on the supply-demand equation for years to come. Since the introduction of its economic reforms, Vietnam progressed from a nation of chronic food shortages to one of the world’s leading exporters of agricultural products, namely rice, coffee, rubber, and tea. Vietnam has only begun to show its potential in the agriculture sector and at this stage most of its agribusiness is involved in low margin commodity exports, rather than value-added processed foods. Vietnamese agribusiness industry must confront issues of low production yields, high costs, food safety, and deficiencies in the processing and distribution segments. In view of Vietnam’s dependency on agriculture and exports of commodities, and given that agribusiness accounts for more than 18% of total listed market capitalization, Horizon Securities has sought out the listed agribusiness companies and has highlighted some of the major opportunities and challenges these companies will face. 1.1 The food supply-demand equation; demand factors We observe three key catalysts driving the long-term demand for agricultural production and agribusiness. Demographics: Current world population is believed to have reached over 6.6 billion and is expected to surpass 7.5 billion by 2025, growing by over 70 million per year. That 70 million additional people a year worldwide need to bed fed, while the supply of arable land has been on the decline. Current population growth compounded by improvement in health and life expectancy in developing countries intensifies the demand for food. We see China and India as being key factors in the global food supply-demand equation as they account for more than one-third of the world’s population. With a population of about 1.3 billion, China feeds the largest number of consumers in the world. China becoming a net importer of food would have major repercussions on world demand and soft commodity prices. China has already shifted from being self-sufficient to an importer for certain food staples, such as soybean of which it is now the world's largest importer. In addition, we are facing the fact that China will soon have to begin importing much more corn than the 100,000 tones it is currently importing. According to Zhu Changguo, Chairman of the Chinese Cereals and Oils Association, China could be forced to import 10 million tons of corn a year by 2010 to feed its growing livestock industry and ethanol production.

2 Merrill Lynch, April 2007

We believe major structural change in global agricultural that will affect the entire food value-chain

Agribusiness accounts for more than 18% of Vietnam’s total listed market capitalization

China has shifted from being self-sufficient to an importer for certain food staples



Vietnam’s population exceeded 85 million in 2007 with over 50% under 30 years old and a median age of 26.4 years. Successful family planning efforts resulted in the population growth rate dropping to 1% in 2007 from 2.1 percent in 1989. According to the US Census Bureau the Vietnam’s population will be just short of 100 million by 2025, growing at an average 0.8 million per year. Eating habits: Demand for animal protein, such as beef, pork, poultry, and dairy generally increases with affluence. Increasing real income and urbanization in emerging markets are encouraging higher levels of nutrition and diets that incorporate more animal protein. Figure 1. World’s meat consumption vs. GDP Figure 2. Vietnam’s meat consumption per capita

y = 24.201Ln(x) - 159.24

R2 = 0.6254

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Source: Horizon Securities, FAO Source: Horizon Securities, FAO, USDA Rising income, particularly in Vietnam’s urban areas induced a rapid increase in demand for meat. Per capita meat consumption went from 16kg/year in 1987 to 38.17kg/year in 2007, 70% of which is pork meat. In response to this rising demand, the private sector invested heavily in feed, breeding, and slaughtering/processing. Between 2000 and 2006 the total value of livestock output increased at over 7% GAGR while the total agricultural sector increased by 4%. Figure 3. Fisheries and livestock output value (bln’VND)

Figure 4. Agriculture, fisheries and livestock composition

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Industrial crops Fruit crops Oceanic fisheries Aquaculture Source: GSO Source: GSO In 2000, the state selected pork and dairy as strategic livestock commodities. While pork was chosen to develop an export market, dairy was developed in order to reduce Vietnam’s reliance on milk imports. The number of live pigs increased from 18.9 million in 1999 to 26.9 million by 2006. Live cattle increased from just above 4 million in 1999 to over 6.5 million in 2006. Thanks to better breeding methods, higher quality feeds, and new large-scale animal farming facilities, the country was able to increase production capacity and yields. Between 2000 and 2006, the average weight of a pig increased by over 30%, while the amount of milk domestically produced went from 51,000 tons to over 200,000 tons per year.

more animal protein in Vietnamese diet…

… means more livestock production



Economic growth has also benefited the production of other types of animal proteins. The Vietnamese poultry sector had been scaling up at a rapid pace in the last decade. However, the outbreaks of Avian Influenza in 2004, 2005, and country-wide culling of chicken, caused production to be scaled back significantly, as farmers worry about loosing their flocks from further outbreaks in the future. In 2001, the state formulated a plan to bolster fish farming in the Mekong Delta by developing 700,000 hectares of land. Backed by strong government support, fish and shrimp farming grew at over 19% CAGR from 2000 to 2007. There are now close to one million fish farming hectares and the sector produces more than two million tons of farmed aquatic products per year. Most of the world's livestock is grain fed; grain account for 70% of the cost of the animals’ diet. To raise poultry and pork, it takes an estimated 2 to 4 kg of grain to produce 1 kg of meat, and for grain-fed cattle, the figure is an estimated 7 kg of grain per 1 kg of meat. Therefore, as demand for grain-fed animal protein increases, so does demand for animal feed. The increasing demand for animal feed has prompted Hanoi to boost maize production (at the expense of arable land used to growing rice) in an effort to reduce Vietnam’s dependency on maize imports for feed manufacturing. Biofuels: In response to higher energy prices, and fueled by government incentives, the fledgling biofuels industry has started to grow at an explosive pace. This growth was fuelled by a series of government policies aiming to reduce petroleum dependency. In his State of the Union address, in January 2007, President Bush declared that the US would need to expand the use of biofuels and invest in new technologies to produce ethanol. Concretely, in December 2007, the adoption of the United States Energy Bill doubled the Renewable Fuel Standard (RFS) for first generation biofuels to 15 billion gallons per year by 2015. Figure 5. US grains for ethanol production Figure 6. US biofuels consumption

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Source: Earth Policy Institute Source: US National Biodiesel Board By far the largest producer of biodiesel in the world, the European Union has about 180 operational biodiesel plants which have a production capacity estimated at 10.2 million tons. Supportive government policies in the European Union have encouraged biodiesel production. The US National Biodiesel Board indicates there are 171 operational biodiesel plants in the United States, with a total production capacity exceeding 8.48 billion liters. Production capacity has rocketed in response to growing demand, which has risen from 98 million liters in 2004 to 852 million liters in 2006. Although we believe this will significantly disrupts the supply-demand structure of major crops, government biofuels policy is the key variable that will determine the extent of ethanol’s effect on soft commodity prices. In fact, in response to higher food prices and research suggesting limited environmental benefits of starch-based

grain account for 70% of the cost of the animals’ diet

… more grain for animal feed results in less grain for food



biofuels technology, there is growing concern, particularly in Europe, about the viability of diverting arable land for biofuels feedstock. 1.2 The food supply-demand equation; supply factors Over the past 50 years, the green revolution had enabled world food production to outpace rising demand (and sustain a low-priced food environment). New technologies and agricultural techniques such as crop rotation, mass production and use of agrochemicals, expanded irrigation, and the introduction of genetically superior, disease-resistant plants brought about considerable benefits. However, the demand has caught up while supply has slowed. In Vietnam, major investments in irrigation had contributed to past sector growth, for rice in particular, but this production has begun to plateau. Among the most serious constraints to increasing yields in the face of population growth are: 1) shortages of arable land, 2) degradation of land resources, 3) loss of agricultural land due to urbanization, 4) diversification to non-food of arable land, 5) water shortages and pollution, 6) irrigation problems, 7) collapsing oceanic fisheries, and 8) climate change. As a result capacity to increase food production may well be shrinking. At the time of writing this report, we are reminded of Vietnam’s agri-sector’s vulnerability to adverse weather and risks of disease/pests outbreaks. A record-long cold weather in the North of Vietnam has caused over 60,000 cattle to die, and has destroyed over 150,000 hectares of rice paddies. Water shortages caused by low rainfall in the North of Vietnam, are hurting agriculture in the Red River Delta. There are also growing concerns about elevated risks of another bird flue outbreak and potential blue-ear outbreak. Since the beginning of the year there have been H5N1 outbreaks in seven provinces in the country. Although Vietnam has been vaccinating poultry for years, there is a clear and present risk that farmers may have to cull millions of birds as they did in 2004 and 2005. 1.3 The food supply-demand equation; soft commodities are taking centre stage Soft commodities prices have soared to decade-highs affecting producers, consumers, and governments everywhere. The triggering factor was the sudden increase in demand for grain used to manufacture ethanol in the US. From 2006 to 2007, grain used for ethanol production jumped from 54 million tons to 81 millions,

effectively doubling the annual growth in world grain demand. The most significant year-over-year price increase has been for wheat, which rose by an average 74.5%. World maize prices increased by nearly 20% in 2007, but this follows an increase of almost 45% in the previous year. For rice, world prices registered a 17% rise year-over-year. Declining global stockpiles of soft commodities are

exacerbating current price pressures. Global inventories of grains are currently at a 25-year low. What sets apart the current agri-sector conditions to previous ones is the fact that prices are soaring, not just for a selected few, but for nearly all, major food and feed commodities.

Figure 7. World’s grain production and consumption

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From 2006 to 2007, grain used for ethanol production jumped from 54 million tons to 81 millions



As these events permeate into the food value-chain in Vietnam, processors and consumers are feeling the crunch. Furthermore, a politic of food scarcity is emerging as Hanoi has limited rice exports in an attempt to limit the rise in domestic food prices. In 2007, Vietnam’s Consumer Price Index rose by 12.6%, while food and foodstuff jumped 19%, the highest increase among the CPI’s components. Food and foodstuff alone, account for more than 42% of the CPI basket. Fighting inflation in Vietnam We are concerned about Vietnam’s rampant inflation and the ramifications it will have on the economy and consumer spending. However, the current inflation environment is not only inherent to Vietnam, as we point out throughout this report; there are global pressures at work that are affecting inflation everywhere. It’s always difficult to know why central bankers do what they do, and we are uncertain about how the State Bank’s recent moves will pan out in the economy. First, the State Bank announced it would reduce the money supply by approximately VND34,000 billion (US$2.13 billion) by requiring commercial banks 1) to increase their reserves by 1% to 11% of their deposits, and 2) by forcing commercial banks to buy treasury bonds to be issued on 17 March 2008. Then, last week the State Bank, through open market instruments, injected VND39,000 billion (US$2.44 billion) into the monetary market with a maturity date on 8 March 2008. In short, the State Bank withdrew money and injected it right back, but did this through different channels. Almost instantly after these measures were announced, a cold chill ran across the red hot real estate market. Commercial banks may have interpreted these measures as a message that they needed to restructure their mortgage portfolio. It is still unclear, however, how these measures will affect the economy in the short to medium term and whether they will be successful at curbing inflation.



Figure 8. World urea fertilizer price Figure 9. World coffee price

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Source: Reuters Source: Reuters Figure 10. World wheat price Figure 11. Vietnam food CPI vs. total CPI

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Source: futures.tradingcharts.com Source: GSO Figure 12. Vietnam rice price Figure 13. Vietnam pig and piglet price

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Source: Agriculture Information Center of Vietnam Source: Agriculture Information Center of Vietnam Figure 14. Vietnam industry and domestic chicken price

Figure 15. Vietnam gasoline price

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r

Source: Agriculture Information Center of Vietnam Source: Agriculture Information Center of Vietnam



II. Challenges and opportunities for Vietnam agribusiness Government reforms were successful in stimulating agricultural production to the extent that Vietnam moved from being a rice importer to the world’s second largest rice exporter. Despite positive strides in the sector, Vietnamese farmers still face many challenges and continue to operate with very limited capital. Outdated machinery is common and the majority of Vietnam's fields are still tended by non-mechanical means, mainly manual labor or water buffalo. Poor transportation systems and the lack of post-harvest handling, storage, and processing facilities are causing high spoilage rates. The MARD estimates that 20% of all production is lost due to inadequate storage and processing equipment. To sum up, since the late 1990’s Vietnam’s agribusiness increased owing to strong domestic demand for food and rising agri-exports. However, considering the need for investments in the sector and poor fixed asset base, we are concerned about the ability of Vietnam’s agribusiness companies to maintain margins amid surging soft commodities costs. We believe, however, that there will be significant growth opportunities for well positioned players all along the agribusiness value-chain, from farm inputs to retailers, as Vietnam’s agribusiness sector must increase production, yields, quality of products, processing capabilities, handling, packaging and logistics. Rising local consumption and export demand against supply-side constraints (limited land, water supply, low reserves, and weather) will necessitate farmers to increase yields. We believe this will drive the demand for farm inputs such as agrochemicals, seeds, and machinery. While there is no new capacity expected before 2010, the growing demand for fertilizer is leading to rising imports. We believe domestic fertilizer producers could benefit from a potential government “release” of domestic prices as these have yet to be aligned with world prices. We believe that as input costs increase, the ones to benefit will be those that can minimize price pressures from suppliers and/or customers. These are companies that have already started to integrate upstream and capable of securing stable input prices, and companies that have a strong brand name that can pass the cost onto consumers. Moreover, we believe there is an opportunity for corporations to set up large scale industrial farms and factory farms, as more flexible land reforms have opened the door to land consolidation and accumulation. Additionally, exports of food products can become a valuable growth driver for the agribusiness sector if Vietnam is able to improve price competitiveness, quality of products, and move towards higher-value products. Domestic producers must meet all the processes and hygiene requirements set by importing countries, regarding farming, harvesting, processing and packing. Over the past several years, Vietnam's urban economy has begun a steady transition from traditional open-air markets to modern supermarkets and shopping centers. Although early stage, this trend alone has increased the extent of the food value-chain. The success of large-scale retailing and food exports is depends on an efficient supply chain. As modern procurement systems invariably exert more demanding requirements from processors we see greater demand for cold storage, logistics, warehousing, and processing facilities. Finally, the urban middle-class accounted for 55% of the urban population in 2006, up from 33% in 2003. With a fast-growing urban middle-class and demand for higher value products in Vietnam’s cities, we believe there is an opportunity for branded FMCG food products. Added-value food products have had a tremendous growth in 2007; five of the ten fastest growing health and convenience products were food

Vietnam moved from being a rice importer to the world’s second largest rice exporter

Rising local consumption and export demand drive the demand for farm inputs

…fast-growing urban middle-class and demand for high-value products in Vietnam’s cities create opportunity for branded FMCG food products



goods. What’s more, brand-aware Vietnamese consumers are buying Vietnamese products; five of the ten fastest growing brands were Vietnamese in 2007. Figure 16. Top 10 growth categories (value growth % 2007 vs. 2006)

Figure 17. Top 10 fastest growing brands

82%

68%

59% 57%53%

51%46% 45%

36%32%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Ready-t

o-drin

k tea

Milk Paste

rizee

d

Tonic

drink

Razor

Insect

trap

Toner/ A

stringe

nt

Adult d

iaper

Sun pr

otection

Ice cr

eam

Milk po

wder f

or inf

ant

17.0%

11.4%

10.3%

7.9% 7.7% 7.4%6.4%

5.6%5.1% 4.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

Khong doRTD Tea

(THP)

VinamilkIce

cream

TrangTien IceCream

Sting(Pepsi)

Maggi(Soyasauce)

C2 (RTD) Tw ister(Pepsi)

Vinh Hue(SoyaMilk)

Chinsu(Soyasauce)

Aji-Ngon(MSG)

Source: TNS Worldpanel Source: TNS Worldpanel


Vietnam Agribusiness fast facts

Vietnam ranks first in export of pepper, second in rice, coffee, cashew nuts, and top-five of natural rubber and seafood.

Rice productivity in Vietnam is at 4.89 tons per hectares one of the highest level in the world.

Average farm size in Vietnam is at 0.5ha; three hundred times lower than that in the US.

Paddy area has lost 6.5%, from 7.7mln ha in 2000 to 7.2mln ha in 2007. 51.5% of paddy land is in the Mekong Delta.

Since the “Economic Reform” in the 90s, share of agriculture in overall GDP has come down to more than 20% in 2006 from 40% in 1990.

Total investment in agriculture stands at 4.17% of GDP with public investment accounting for 2.19% of GDP.

The Government is now targeting 3.0-3.5% growth in agriculture over the next 5 years. The agriculture sector achieved a 4.1% CAGR over the past 10 years.

Total agro-forestry export value to grow at 12% pa to 2010. Export value in 2007 has already surpassed government’s targets for 2010.

60mln or 72.88% of the total population reside in Vietnam’s rural area. Agribusiness employs more than 55% of the country’s workforce.

10mln rural households, at the current household income level of US$1,000 pa, make up a sizable buying power.

In the past 5 years, the Government has stipulated Law on Land, Law on Cooperative, Law of Forest Protection & Development and many others regulations on framing and agriculture activities.

Vietnamese companies are now allowed to trade in commodities exchanges through local banks.

The list of 10 sensitive products, governed by the state, includes fertilizer, rice, foodstuffs, cement, steel, gasoline, sugar, salt, paper and medicines.

State finance system for agriculture includes Agriculture Bank, Bank for Public Policies and 926 public funds.

Only 50% of farmers have access to state credit system with preferential interest rates 7.2-8.4% pa.

In 2006, the State’s spending on agriculture reached US$776mln, up 7% yoy.

The Government is spending VND157tln (US$9.8bln) to improve rural infrastructure – irrigation, roads, electrification, R&D and training.

Fisheries, industrial crops and food processing are the major focus areas for Vietnam’s agri-industry.

Fish farming production has increased nine-fold since 1990.

Since the beginning of 2007, exported rice and coffee prices have risen 40% and 32% respectively.

Price of rice increases 2x-3x along the supply chain due to poor infrastructure, inadequate storage and excessive intermediation.

Vietnam’s beer sales totaled US$2.2bln in 2007. The alcoholic drink industry has grown at 10% CAGR in the past 5 years.

Only 10% of agri-product in Vietnam is processed. The Government plan to increase the figure to 20% by 2010.

Food processing makes up 8.1% of industrial output and has been growing at 13% CAGR in the past 5 years.

Vietnam’s food retailing sector is a US$10bln, growing at 11% CAGR in the past 5 years.

Around 76mln (90%) Vietnamese people still shop at traditional wet market and groceries.

Co-op Mart is the leader in the retailing business with 27 supermarkets and plans to expand to 100 locations by 2010.

Metro Cash&Carry, BigC, Parkson, Lotte Department, Dairy Farm are already in Vietnam. While Wal-Mart, Carrefour have Vietnam in their expansion plans.

There are 36 listed companies in the agribusiness sector, on Ho Chi Minh Stock Exchange and Ha Noi Trading Center.



Figure 18. Vietnam agriculture GDP to total GDP Figure 19. Vietnam agriculture output

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1990

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% A

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o G

DP

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06

Food Vegetable and bean

Industrial crop

Fruit crop

Source: GSO Source: GSO Figure 20. Vietnam agriculture export mix Figure 21. Vietnam agriculture export vs. total

export

Wood and wooden

products

Fishery products

Other

Rice

Rubber

Coffee Vegetables & fruit

0

5,000

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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mil

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Total Agri Export Total Export

Source: GSO Source: GSO Figure 22. World arable land per capita

Figure 23. Vietnam arable land for paddy

0

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Oceania North America Europe South

America

Sub-Saharan

Africa

Middle East &

North Africa

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America &

Caribbean

Vietnam

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on

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illi

on

)

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a

Population Arable Land per capita

-

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2007

thou

sand

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Source: Earthtrends Source: GSO Figure 24. Vietnam arable land for perennial industrial crops

Figure 25. Vietnam arable land for annual industrial crops

0

100

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500

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700

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900

1990 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007E

Tho

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nd

ha

Sugar-cane Cotton Jute Sedge Peanut Soya-bean Tobacco

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1,400

1,600

1,800

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Tho

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ha

Tea Coffee Rubber Pepper Cashew nut Coconut

Source: GSO Source: GSO



III. Listed agribusiness Of the 271 listed companies in Vietnam, there are currently 36 companies involved in the agribusiness value-chain. Agribusiness in Vietnam’s capital markets accounts for more than 18% of the total market capitalization. In addition, of the thirty largest market caps, agribusiness is the third most predominant industry after real estate and construction, and financial services. Given the sector’s significant contribution to

Vietnam’s GDP, we built a listed shares market cap weighted agribusiness index to track the performance of the companies involved along the food value-chain. There are four parts to the agribusiness value-chain; farm inputs, production, processing, and distribution/marketing. Most of the listed companies are mainly processors with some level of upstream and possibly downstream integration. Horizon Securities believes that as a leading commodities exporter Vietnam will face a host of challenges and opportunities from the current dynamics in the global agribusiness sector. Horizon Securities has sought out the listed agribusiness companies and has highlighted some of them in this report. Figure 27. HRS Agri-index covered stocks: Valuation comparables

Net sales EBIT % yoy EBIT % yoy EBIT % yoy OPM

FY05 FY06 FY07 FY05 FY06 FY07 FY07

DPM.HM PVFCCo Fertilizer (urea) 2,537,555 3,050,829 3,779,038 22% 790,106 N/A 919,765 16% 1,269,695 38% 34%HSI.HM MF JSC Fertilizer (NPK) 137,778 389,476 656,894 118% 5,832 N/A 26,911 361% 56,200 109% 9%TSC.HM TSC Fertilizer (trading) 879,702 1,138,957 1,375,090 25% 4,620 179% 12,511 171% 86,267 590% 6%HAI.HN HAI Crop protection 358,864 415,502 496,545 18% 44,600 N/A 29,648 -34% 46,080 55% 9%NSC.HM NSC Seed 102,579 96,552 140,388 17% 8,957 N/A 6,062 -32% 12,708 110% 9%SSC.HM SOUTHERN SEED Seed 127,919 129,861 155,857 10% 29,280 10% 24,654 -16% 24,957 1% 16%TRI.HM TRIBECO SAIGON Berverage 306,451 293,779 384,639 12% 7,095 -24% 16,095 127% 17,421 8% 5%SCD.HM CHUONG DUONG BEV. Berverage 148,021 194,485 238,894 27% 17,932 N/A 18,625 4% 20,238 9% 8%VTL.HN THANG LONG JSC Berverage 72,116 63,390 75,164 2% 11,696 13% 11,099 -5% 10,782 -3% 14%VDL.HN LAM DONG FOOD Berverage 136,174 130,238 151,845 6% N/A N/A N/A N/A 10,398 N/A 7%IFS.HM INTERFOOD Berverage 507,213 641,686 723,272 19% 67,913 N/A 71,363 5% 86,808 22% 12%VNM.HM VINAMILK Dairy 5,638,784 6,619,102 6,821,864 10% 524,448 2% 594,186 13% 671,963 13% 10%HNM.HN HANOIMILK Dairy 288,076 327,972 323,829 6% 26,411 N/A 18,149 -31% 20,231 11% 6%KDC.HM KINH DO CORP Confectionery 798,617 998,149 1,233,119 24% 111,219 10% 131,881 19% 156,464 19% 13%NKD.HM NORTH KINH DO Confectionery 354,789 419,429 561,580 26% 43,824 49% 55,506 27% 69,406 25% 12%BBC.HM BIEN HOA CONF. Confectionery 285,362 341,331 453,975 26% 18,854 24% 19,022 1% 22,998 21% 5%HHC.HN HAI HA CONF. Confectionery 330,058 325,830 341,248 2% 16,800 N/A 18,957 13% 22,975 21% 7%ABT.HM BENTRE AQUATEX Aquaculture 282,433 331,215 429,706 23% 9,996 79% 26,627 166% 32,397 22% 8%ICF.HM INVESTMENT COM. Aquaculture 281,202 283,154 326,025 8% 12,441 N/A 23,070 85% 25,122 9% 8%ANV.HM NAM VIET CORP Aquaculture 1,212,316 2,707,076 3,193,437 62% N/A N/A 299,334 N/A 390,237 30% 12%MPC.HM MINH PHU SEAFOOD Aquaculture 2,027,425 1,352,531 N/A N/A N/A N/A 98,861 N/A N/A N/A N/AVHC.HM VINH HOANG Aquaculture 507,014 1,516,245 1,789,557 88% 6,903 N/A 98,579 1328% 142,636 45% 8%AGF.HM AN GIANG FISH. Aquaculture 786,182 1,190,906 1,233,734 25% 30,484 8% 52,339 72% 46,277 -12% 4%ACL.HM CUU LONG FISH. Aquaculture 88,475 311,275 537,449 146% N/A N/A 41,022 N/A 65,271 59% 12%TS4.HM SEAFOOD NO.4 Aquaculture 83,880 151,827 172,904 44% 3,623 -13% 6,546 81% 7,850 20% 5%SJ1.HM SEAFOOD NO.1 Aquaculture 130,781 147,895 145,553 5% 5,650 N/A 4,980 -12% 6,240 25% 4%FMC.HM SAO TA FOOD Aquaculture 970,807 925,197 999,764 1% 37,581 N/A 33,782 -10% 36,511 8% 4%FBT.HM FAQUIMEX Aquaculture 373,460 457,661 N/A N/A 21,331 N/A 35,912 68% N/A N/A N/ALAF.HM LAFOOCO LONG AN Aquaculture 784,550 699,904 626,503 -11% 17,390 -55% (14,139) -181% 35,453 351% 6%SGC.HM SA GIANG IM. Food processor 98,100 88,489 118,917 10% 15,013 N/A 16,840 12% 17,671 5% 15%SAF.HM SAFOCO Food processor 203,970 272,065 333,205 28% N/A N/A 8,411 N/A 10,429 24% 3%CAN.HM HALONG FOOD Food processor 191,255 204,206 309,086 27% 10,647 84% 11,289 6% 13,074 16% 4%TAC.HM TUONG AN OIL Cooking oil 1,181,594 1,515,469 2,554,229 47% 22,333 N/A 28,868 29% 102,790 256% 4%LSS.HM LAM SON SUGAR Sugar 651,976 626,661 813,958 12% N/A N/A 115,718 N/A 118,805 3% 15%BHS.HM BIEN HOA SUGAR Sugar 540,656 766,123 643,945 9% 53,292 22% 69,429 30% 44,783 -35% 7%SBT.HM BOURBON TAYNINH Sugar 629,791 679,860 674,272 3% 119,365 173% 173,847 46% 149,109 -14% 22%

Sales growth 2Y-CAGR

Company nameTicker Subsector

Source: Horizon Securities, Reuters, company’s report

3 Horizon Securities clients can contact their account manager to get more information on how they can invest in the same proportions set out in any of the HRS Indices.

Figure 26. HRS Agri-Index3

0

20

40

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1/07 2/07 3/07 4/07 5/07 6/07 7/07 8/07 9/0710/07 11/07 12/07 1/08 2/08

VN-Index_adj HASTCI_adj AGRI-Index_adj

Source: HOSE, HASTC, Horizon Securities



Figure 28. Vietnam: Agribusiness value chain

• Fertilizers • Plantation • Meat processing • Logistics• Crop protection • Crop production • Aquaculture • Strorage• Seed • Fishery • Confectionary • Suppermarkets• Machinery • Livestock • Sugar • Hypermarkets

DPM Petrovietnam

HSI General Fertilizer

TSC Techno–Agricultural

HAI H.A.I JSC

NSC National Seed

SSC Southern Seed

ABT Ben Tre Aquaproduct

ICF Investment Commerce

ANV Nam Viet Fisheries

MPC Minh Phu Seafood

VHC Vinh Hoan

AGF An Giang Fisheries

ACL Cuu Long Fisheries

TS4 Seapriexco 4

LSS Lam Son Sugar

BHS Bien Hoa Sugar

TRI Tribeco Sai Gon

SCD Chuong Duong Beverage

VTL Thang Long Wine

VDL Lam Dong Foodstuffs

KDC Kinh Do Corp.

NKD North Kinh Do

BBC Bien Hoa Confectionary

SBT Sucrerie De Bourbon TN

HHC Hai Hai Confectionary

SJ1 Seafood No. 1

FMC Sao Ta Food

FBT Ben Tre Forestry

LAF Lafooco Long An

IFS Interfood

SGC Sa Giang Import Export

SAF SAFOCO

CAN Canfoco Ha Long

TAC Tuong An Oil

VNM Vietnam Diary Products

HNM Ha Noi Milk

Distribution Processing Production Farm Input

Source: Horizon Securities



IV. Farm input The farm input segment includes companies engaged in fertilizers, crop protection (such as pesticides, fungicides, and insecticides), farming machinery, seed, and feed. These products help to enhance the productivity of land, crops, and animal husbandry. The key drivers for this sector involve the increasing concerns for higher productivity yields resulting from rising food demand against depleting arable land. We believe the rising income in Vietnam’s rural areas will help farmers deal with the current rise in prices of farm inputs. Figure 29. Listed companies in farm input sector

Ticker Name Sector Market Cap.

(VND’mln) Net sales (VND’mln)

EBITDA Margin

Net Profit Margin ROA ROE

DPM.HM PVFC Urea fertilizer 21,470,000 3,779,038 NA 35.0% 21.3% 29.3%

HSI.HM General Fertilizer NPK fertilizer 275,000 656,894 NA 3.8% 5.2% 31.8%

TSC.HM TSC Fertilizer trading 694,128 1,375,090 NA 5.0% 17.8% 57.3%

HAI.HN HAI Crop protection 558,600 496,545 9.5% 10.3% 14.3% 30.2%

NSC.HM National Seed Seed 123,840 140,388 9.9% 9.6% 12.6% 20.2%

SSC.HM Southern Seed Seed 421,000 155,857 NA 14.1% 14.8% 18.1% Source: Horizon Securities, company’s data 4.1 Fertilizer sector in Vietnam: relying heavily on imports Increasing at a 4.5% CAGR over the past 5 years, by 2007 Vietnam’s aggregate fertilizer demand had reached 6.2 million tons. Due to insufficient domestic production capacity, the country has to import more than 61% of the yearly demand, making it one of the biggest fertilizer importers in the world. In order to encourage local production, the government has accorded a number of favorable policies to fertilizer producers, such as low VAT (5%), subsidies on transportation and raw material costs, and privileged access to natural resources. Since fertilizer is on the list of the ten key products4 under the government’s “price management”, the government “recommends” a selling price range to local producers. The end result is that fertilizer prices in Vietnam have not moved in step with the world prices. In 2007, as the international urea prices had surged by 104% year-over-year, local prices increased by just about 20%. Although revenues have been capped, local producers are able maintain their profit margins thanks government subsidies and low raw material costs. As Vietnam fulfills its WTO’s agreements and more state-own enterprises are privatized, we expect less price controls and subsidies from the state. Figure 30. Local fertilizer production Figure 31. Vietnam’s fertilizer import

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10% CAGR

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'000

tons

Urea (N) Phosphate (P) Potash (K) NPK Others

Phu My Fertilizer commenced operation

Source: Vietnam Fertilizer Association Source: GSO

4 10 products include: fertilizer, food, food stuffs, cement, steel, gasoline, sugar, salt, paper and medicines

Vietnam has to import more than 61% total fertilizer consumption… making it biggest fertilizer importers in the world.

The key drivers for this sector involve the increasing concerns for higher productivity yields resulting from rising food demand against depleting arable land



Urea market (N) The state monopolizes Vietnam’s urea market. Although there are hundreds of fertilizer trading companies, there are only two urea producers; Petrovietnam Fertilizer & Chemicals Plc. (PVFC), listed on HOSE, and Habac Nitrogenous Fertilizers & Chemical Ltd. (HANICHEMCO), which is a subsidiary of the state-owned conglomerate, Vietnam National Chemical Corporation (VINACHEM)5. In 2007, Vietnam consumed more than 1.7mln tons urea, 45% of which was imported, mainly from China. The Ministry of Agriculture and Development estimates urea demand to increase by 8% per year to 2.1mln tons by 2010. Because demand still outstrips the domestic supply, we believe that in the short-run, local prices will continue to increase despite the government’s effort to minimize the increase. Moreover, China, the largest fertilizer exporter to Vietnam, in a bid to ensure supply to its farmers, decided last month to raise export tariffs on urea fertilizer. By 2010, the Hanoi plans to establish two more state-owned fertilizer companies with a total built up production capacity of 1.3 million tons of urea per year, hence providing enough supply to the market. Figure 32. Fertilizer prices Figure 33. Local supply vs. demand

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Total Demand Total Local Supply Shortage/Surplus

Source: Reuters, Price Department Source: Vietnam Fertilizer Association Figure 34. Market share 2007 Figure 35. Market share 2010

Phu My Fertilizer45%

Ha Bac Fertilizer10%

Import45%

Phu My Fertilizer37%

Ha Bac Fertilizer7%Ninh Binh Fertilizer

23%

Ca Mau Fertilizer33%

Source: Horizon Securities, Vietnam Fertilizer Association Source: Horizon Securities, Vietnam Fertilizer Association PVFC Fertilizer (ticker: DPM.HM) opened its urea production plant in 2004, and has been listed on HOSE since November 2007. With its current capacity of 740,000 tons per year, PVFC accounts for more than 45% of total urea consumption in Vietnam. To secure its position in the market, PVFC has recently invested US$50 million in a new production facility, which will add 125,000 tons to PVFC’s total production in 2010. 5 www.vinachem.com.vn. VINACHEM is the largest corporation in the chemical industry in Vietnam, owning more than 40 companies in fertilizer, crop-protection, rubber, oil refinery, and various chemical sectors.

…urea demand is estimated to increase by 8% CAGR to 2.1mln tons by 2010



Raw material for nitrogen fertilizer is abundant The main raw materials for urea production are coal or natural gas, which contribute more than 90% of total production costs. For economic and environmental reasons, natural gas is the feedstock of choice. According to Cedigaz, Vietnam has around 400 billion cubic meters of proven natural gas reserves. Current production level is about 7 billion cubic meters per annum. The country has discovered four gas fields, including the Bach Ho Oil Field, Nam Con Son Gas Basin, May Lay Tho Chu Basin and Song Hong (Red River) Basin. Beside these projects, many companies are carrying exploration activities to prove more gas reserves offshore Vietnam.

PVFC is using natural gas in the production while HANICHEMCO, since 1960, has been using coal-based production. PVFC’s natural gas consumption is currently around 53,000-54,000 metric tons per hour, which it gets from the Bach Ho (White Tiger) Oil Field and Nam Con Son Gas Project. The company has secured a long-term agreement with the state to purchase natural gas at US$2.2 per million BTU until 2012, and US$3.6 per million

BTU thereafter. Other types of fertilizers – Phosphate (P2O2), Potash (K2O), NPK Vietnam is self-sufficient for the production of super-phosphate (OSP); but due to the scarcity of phosphate and salt deposits, the country is unable to produce DAP and potash fertilizers. Annual consumption of these fertilizers has reached more than 2 million tons; mainly imported from China. The Ministry of Planning and Investments forecasts that demand will continue growing at 3% to 5% annually until 2010. The state-owned Vinachem operates thirteen fertilizer companies, which dominate 60% of the NPK processing market. Other major producers in this sector include the General Biochemistry Fertilizer (ticker: HSI.HM), the Vietnam-Japan Fertilizer (Japan), the Tan Hung Fertilizer Ltd., and the Proconco JV (France). The General Biochemistry Fertilizer Co. (ticker: HSI.HM) recently expanded its total production to 480,000 tons per year, enough to cover 15% of the domestic NPK demand. Revenue in 2007 reached US$41mln, up 86% yoy. Management announced its intention to move into other agrochemical markets and has invested US$0.72 million in a new insecticide factory. The company also plans to invest over US$40 million into two infrastructure projects; an industrial park and a port. The Techno-Agricultural Supplying Co. (ticker: TSC.HM) is a fertilizer trading company. As such it imports more than 10% of Vietnam’s total fertilizer imports. Sales for 2007, reached US$86 million up 21% over the previous year. Management decided to establish a new securities brokerage house in the Mekong Delta region, the Can Tho Securities JSC, which will start operations in the first quarter of 2008. 4.2 Crop protection The crop protection industry includes pesticides, fungicides, and insecticides. Rising health and environmental concerns, and tougher regulations over the use of these chemicals have caused world crop protection sales to drop by 2.5% to US$30.4 billion. The most significant reduction in crop protection sales was in the NAFTA region loosing 5.3%, followed by Asia, which fell by 4.1%. Global growth expectations remain low at 1-2% over the next five years.

Figure 36. Vietnam gas reserve and production

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36% CAGR


Vietnam has around 400 billion cubic meters of proven natural gas reserves

…annual consumption is around 2mln ton, mainly imported from China… demand continues to grow at 3-5% annually to 2010.

In Vietnam, PVFC is using natural gas in the production while HANICHEMCO, since 1960, has been using coal-based production



Every year Vietnam consumes more than 9 million tons of crop protection chemicals, mainly pesticides. Vietnam’s Plant Protection Department estimates that more than 95% of farmers excessively use pesticides. In the context of the tainted food scandals in China, the misuse of chemical pesticides may have a serious detrimental effect on Vietnam’s agri-exports. Industry analysts estimate that consumption of chemical crop protection products in Vietnam will gradually decrease in the future. The key local players in the industry include; H.A.I JSC (ticker: HAI.HM), An Giang Pesticide (AGPPS), Sai Gon Pesticide (SPC), the Microbiological & Chemical Industry JSC (BICICO) and Vietnam Pesticide JSC (VIPESCO). HAI has a very small production capacity; it mainly buys pesticides in bulk then re-packages in bottles and distributes them to the market. The company estimates it holds about 10% market share. In 2007, HAI sales reached VND496.5 billion (US$31 million), representing a 19.5% increase over the previous year. 4.3 Opportunities for the seed sector According to Phillip McDougall, in 2006 the value of the market for agriculture biotechnology based products, which currently comprises sales of seed of herbicide tolerant (HT) and insect resistant (IR) crops, continued to advance by 14.2% to US$6,050 million. The market for biotech crops is expected to continue to expand, both through the adoption of advanced traits and uptake in further country markets, particularly in Asia. The Vietnamese government allows local and foreign companies to sell genetically modified seeds as long as they comply with the state regulations.

In Vietnam, there are more than 65 domestic and foreign companies operating in the seed sector; most of them are either state-owned companies or governmental research centers. Global industry leaders have made headway into the country; namely Bayer Cropscience, Monsanto, and Syngenta.

Of the domestic companies, only three have the capabilities to produce seeds themselves. Two of these companies are listed; they are the National Seed JSC (ticker: NSC.HM) and the Southern Seed JSC (ticker: SSC.HM). Established in 1968, the National Seed JSC currently operates three production plants, and an experimental farm. The company’s main products include rice, maize, vegetable, and sweet potato seeds. Its main markets are in the North of Vietnam and Laos. Total revenue in 2007 was VND140.4bln (US$8.7mln), a 45.4% increase over 2006. The company recently raised capital to acquire other domestic seed companies, and to invest in an industrial park in the North of Vietnam. The Southern Seed Co. produces rice, maize, beans, bitter melons, cucumbers and watermelons seeds mainly for the South of Vietnam. Total revenue in 2007 was VND155.9bln (US$9.7mln), up 20.0% year-over-year. The company also has announced significant investments to acquire a research center and two experimental farms. Management recently announced the acquisition of Ha Tay Seed Co., and the development of a seed production facility in Ha Noi. The Company also acquired a 49% stake in an office building in HCMC.

Figure 37. Growth of the biotech crop market in the world

0

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4,000

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7,000

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

$ m

illio

n

Source: World Fertilizer Association

In Vietnam, there are more than 65 companies operating in the seed industry; most of them are either state-owned companies or governmental research center.



Figure 38. List of registered seeds in Vietnam Type Code Companies

Paddies LC93-1 Syngenta Vietnam Maize WAX44 Monsanto Thailand Maize DEKALB 979 Monsanto Thailand Maize DEKALB 959 GM Paddies Research Center GM Paddies HYT 83 GM Paddies Research Center Paddies HYT 100 Thai Agriculture Department Paddies PRACHIBURI Quoc Hao Co. (China) GM Paddies Kim Uu 75 Thai Binh Seed Paddies TBR-1 Luong Nong Co. (China) Maize LNS 222 Agriculture University of Vietnam Paddies Huong Com Southern Seed (SSC) Maize MX10 Southern Seed (SSC) Paddies N46 Agriculture Development Center GM Paddies CNR36 High-tech Agriculture Co. (China) GM Paddies D ưu 725 Quoc Hao Co. (China) Paddies Nghi Huong Uu 725 Quoc Hao Co. (China) Peanut TB25 Thai Binh Seed Paddies TBR 18 Thai Binh Seed Paddies BC15 Thai Binh Seed Paddies Thuc Hung 6 Thuc Hung Co. (China) Paddies B-TE 1 BAYER Cropscience AG Paddies Ha Uu 108 Vietnam-China Co. Paddies KOSHIHIKARI H3 HONDA Motor Co. Maize NK 4300 Syngenta Vietnam Maize NK 67 Syngenta Vietnam Maize NK 66 Syngenta Vietnam Maize DKC 9301 Monsanto Thailand GM Paddies Khang Dan National Seed (NSC)

Source: Horizon Securities, VSTA 4.4 Farming machinery There are no listed companies in this segment. The domestic production is still dominated by the state-owned Vietnam Engine and Agriculture Machinery Corporation (VEAM), and 15 of its subsidiaries. Some of VEAM’s companies have already been privatized. The Agriculture Production Department of Vietnam estimates that the current machinery utilization rate in agriculture is less than 30%. Prices for agriculture equipments are still out of reach for many farmers in Vietnam; a tractor costs up VND100 million (US$6,250) while a harvester sells for VND20 million (US$1,250). Moreover, the country-wide average farm size of 0.5 hectares, coupled with the fact that many farms hold two to five plots of land scattered in different locations, deter household farms from buying expensive machinery. Greater land consolidation, increasing urbanization, and the rural exodus to big cities will drive the need for greater mechanized farming. We believe the rise of industrial farming and co-operatives holding larger plots of land will trigger growth in machinery usage, while better access to bank financing and economies of scales will make farming machinery more affordable to farmers. The Ministry of Industry estimates that total farming machinery production will grow at an average 12% per year to reach VND3,280bln (US$205mln) by 2015. Country-wide as of 2007, there are 145,805 tractors, 793,400 water pumps, 288,400 rice threshers and 257,500 boats. The Ministry of Industry expects that by 2015 Vietnam will need 830,565 tractors, 12,450 harvesting machines, 4,350,570 water pumps and 525,844 boats.

Current machinery utilization rate in agriculture is less than 30%. …we believe there will be increasing demand for tractors, pumps, planting and harvesting machine



4.5 Animal feed The Livestock Department of Vietnam estimates there are 241 feed trading and manufacturing companies in Vietnam (82.2% local, 13.7% foreign invested and 4.1% joint venture companies), none of which are listed. The leading industry players are the large global agribusiness companies, namely Cargill (US), CP Group (Thailand), Proconcon (France) and Uni-President (Taiwan). To produce commercial animal feed, Vietnam has to rely on imported corn since local corn production is insufficient and local ingredients are usually more expensive than imported ones. The animal feed industry is the driver of corn consumption in Vietnam; feed accounts for about 80% of total corn consumption in the country. Vietnam produces around 10 million tons of feed annually, with only 33% commercially manufactured. To feed the livestock that will supply Vietnam’s growing demand for meat, feed grain production will have to be increased. The Livestock Department of Vietnam believes that by 2010, total demand for animal feed will reach 16-17 million tons per year.

V. Resource producers 5.1 Crop production: Opportunities for large-scale farming enterprises There are no listed companies in this sector; most players are cooperative or state-owned companies. Key players in this industry include the Vietnam Northern Food Corporation (Vinafood 1), Vietnam Southern Food Corporation (Vinafood 2), Song Hau Food Processing JSC (Sohafood), Codo State Farm Export-Import (Codofarm), VinhLong Cereal and Food Import-Export JSC (Vinhlong Food), An Giang Import-Export Co., Gentraco Feed JSC (Gentraco), Tien Giang Food Co. (Tigifood), Long An Food Co. (Longanfood), An Giang Agriculture and Foods Import-Export Co. (An Giang Afiex) and Dong Thap Foods - Agriculture Co. (Dargrimex). Fragmented agriculture One of the most important undertakings of the state, in regards to agriculture and food safety, has been to increase rice quality and yields. Through successful seed management and selection, Vietnam has been able to develop new, pest-resistant, rice varieties which have significantly increased the country’s yields per hectare. Today, Vietnam’s paddy yields are above world standards. Though the land allocated to rice culture has diminished, the rice yield and production has increased. Today’s

rice production is of better quality and higher efficiency than ever and production has been increasingly tied to the market requirements. In addition, the country has been able to increase its rice exports to approximately 20% of its total rice production. At 0.1 ha per capita, Vietnam has one of the lowest arable land per capita ratio in the world. In addition, total arable land in Vietnam has been under pressure from greater

industrialization and urbanization. Between 2000 and 2006, the total area allocated to rice cultivation decreased by almost 6.5%, as farmers allocate land to more valuable crops. Over 70% of Vietnam’s population lives in rural areas, and there are more 10 million household farms throughout the country. The country-wide average arable land size per farm is 0.5 ha. Farms in the Mekong Delta are bigger than in the North, with an average size of 1.2 ha. In addition, the degree of fragmentation in the South is less of a problem, with many farmers having only one plot. Household farms are considered

Figure 39. World paddy yield

-

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4,000

6,000

8,000

10,000

Egypt US China Vietnam World India

Pa

dd

y (k

g/h

a)

Source: FAO



the basic economic farm unit. Small farm size and fragmentation of land are some of the main obstacles to increasing productivity and economies of scale in Vietnam. Emerging trends from land reforms Thanks to more flexible land reforms, which have facilitated leasing of land, allowed larger holding size and provided longer use rights, a trend towards greater land consolidation and accumulation has emerged. There is evidence that a “land market” has emerged in every region of Vietnam with activities including renting and leasing land, lending and borrowing land, “‘buying”’ and “selling” Land Use Rights, land exchange and bidding for land. Additionally, recent government policies support the notion of larger farms that will permit the concentration of land and capital. There are currently about 113,000 commercial farms with an average land area of 5 hectares throughout the country, this represent an 86% increase over 2001 figures. We believe this is an important development which will facilitate the development of larger industrial farms. 5.2 Contract farming6 Although first attempts of contract farming were unsuccessful, the state has indicated that it supports the concept as a means to link farmers to market demands. Consequently, the government passed Decision 80/2002/ TTg in 2002, to promote the consumption of agricultural products through signed contracts between enterprises and farmers. Private involvement in contract farming is not a novelty. While success stories vary greatly between types of commodities and geographic localities, there have been some encouraging developments. According to the Ministry of Agriculture and Rural Development (MARD) the majority of rice, maize, sugar cane, and most other industrial crops output is produced under contract farming. Also, we have seen some companies such as Charoen Pokphand (C.P.) Group, Lam Son Sugar and Sugarcane Company (LSS:HM), Angimex-Kitoku JVC, Antesco already integrating upstream and securing with farmers timely access to raw materials.

VI. Processing There are 30 listed companies involved in the processing segment of the agri-food value-chain. 6.1 Dairy Products: Uptrend demand and low level of substitute Key players in the industry include two listed companies: Vinamilk (ticker: VNM.HM), and Hanoimilk (ticker: HNM.HN). Other players include Dutch Lady Vietnam, and some joint-ventures F&N Vietnam Foods Co., and Nestle Vietnam.

Vietnam’s dairy consumption is one of the fastest growing food segments in the country. Current dairy consumption is around 9kg per annum and dairy product consumption has been growing at 16.3% CAGR from 2004 to 2006. Local supply only meets about 22% of the demand for dairy products. Vinamilk purchase about 60% of fresh milk produced in Vietnam. Dutch Lady collects another 20% while the rest is bought by a number of smaller companies. Vietnam currently imports dairy

6 Contract farming can be defined as an agreement between farmers and processing and/or marketing firms for the production and supply of agricultural products under forward agreements, frequently at predetermined prices. The arrangement also invariably involves the purchaser in providing a degree of production support through, for example, the supply of inputs and the provision of technical advice. The basis of such arrangements is a commitment on the part of the farmer to provide a specific commodity in quantities and at quality standards determined by the purchaser and a commitment on the part of the company to support the farmer’s production and to purchase the commodity. (FAO, 2001)

Figure 40. Listed companies in milk sector

Ticker Name Market Cap. (VNDmln)

Net sales (VNDmln)

EBITDA Margin Net Profit Margin ROA ROE

HNM.HN HANOIMILK 173,418 323,829 NA 3.7% 5.0% 8.2%

VNM.HM VINAMILK 19,981,426 6,821,864 NA 14.2% 21.6% 27.4% Source: Horizon Securities, company’s data

Local supply only meets about 22% of the demand for dairy



from various countries including, notably the United States, Australia, Korea, and the Netherlands. Figure 41. Vietnam: production of milk by province

Unit: tons

Year Provinces

2001 2002 2003 2004 2005

Vietnam 64,703 78,453 126,697 151,314 197,679 Red River Delta 4,958 7,032 9,865 12,218 14,098 North East - 33 482 2,739 6,803 North West 4,026 4,550 5,934 7,677 7,820 South Central Coast 365 414 670 971 739 Central Highlands 998 1,673 2,566 3,827 4,853

South Central Coast ex. HCMC 9,814 13,058 16,110 19,711 26,802

Ho Chi Minh City 44,540 51,691 90,264 104,160 130,054

Mekong River Delta 1,871 4,353 5,766 7,859 11,723 Source: MARD Vinamilk (ticker: VNM.HM) is the leading company in the industry with 183 distribution centers and more than 94,000 outlets throughout Vietnam. The company’s current capacity is 491 million litres per year. Net income in 2007 increased 32% yoy. The company has captured 40% of the powder milk market, it dominates 90% of the yogurt market, and 73% of the condensed milk market. In October 2007, Vinamilk acquired a 55% stake in the Lam Son Dairy JSC a small dairy company in northern Vietnam with a capacity of 20,000 litres per year. Hanoimilk (ticker: HNM.HN) is the third largest dairy producer and the largest in northern Vietnam. The company’s total production capacity is 80 million liters per year. Hanoimilk focuses on producing sterilized fresh milk for children between 7–12 years old; a market of which it holds 25-28%. Net profit in 2007 increased by 66.5% compared to the previous year. In August 2007, the company signed a strategic partnership agreement with Maeil, one of Korea’s leading dairy companies, in which Maeil would acquire a 10% stake in Hanoimilk. Hanoimilk’s products have recently been picked-up by Hapro, a state-owned retail and supermarket distribution business, which will distribute them in its stores. 6.2 Sugar industry: Under government’s “price management” Figure 42. Listed companies in sugar sector


Net sales (VNDmln) EBITDA Margin Net Profit Margin ROA ROE

BHS.HM BIEN HOA SUGAR 614,942 643,945 NA 8.3% 8.5% 14.6%

LSS.HM LAM SON SUGAR 900,000 813,958 21.9% 10.0% 9.7% 14.5%

SBT.HM SUCRERIE DE BOURBON TAY NINH 1,021,991 674,272 32.5% 28.4% 11.8% 12.6% Source: Horizon Securities, company’s data

Vietnam has 37 sugar processors with a total capacity of 1.05 million tons per year. In 2007, local producers manufactured 0.97 million tons, about 75% of the domestic demand. As a result, domestic sugar production fails to meet the continuously increasing demand in the beverage and confectionery sectors. The country has to import around 0.3-0.4 million tons each year.

Hanoimilk signed a strategic partnership agreement with Maeil, one of Korea’s leading dairy companies

Vinamilk acquired a 55% stake in the Lam Son Dairy JSC a small dairy company in northern Vietnam



The sugar industry is one the ten key industries of the state; therefore, Hanoi has historically imposed high import tariffs. Vietnam’s WTO engagements require the country to reduce sugar import tariffs. Figure 45. Vietnam: tariff reduction roadmap in compliance with WTO

items 2005 2006 2007 2008 2009 2010 Raw sugar 30% 30% 30% 20% 10% 5% Refined sugar 40% 40% 30% 20% 10% 5%

Source: Horizon Securities, Vietnam Tax Authorities Lam Son Sugar (ticker: LSS.HM) is Vietnam’s biggest sugar producer, with two processing plants and a total capacity of 110,000 tons. The company controls approximately 9% of the market. The company secures supply of sugar cane through contract farming on more than 18,000 hectares. Management recently announced it would diversify the company’s business into banking and insurance and in setting up a private higher education institution. Management also intends to set up a dairy farm. Bien Hoa Sugar (ticker: BHS.HM), the second largest sugar company in Vietnam, has a capacity of 90,000 tons. In 2007, the company produced approximately 75,000 tons of sugar to capture 7.6% market share. It is currently the main sugar supplier to the leading domestic food & beverage companies, notably, Vinamilk, Nestle, Coca-Cola, and Pepsi. To ensure supply of raw material, the company contracted out, a total area of 6,900 ha for growing sugar cane. In addition, the company owns 1,000 ha on which it grows sugar cane for its own production. In November 2007, BHS successfully acquired Tri An Sugar Co. The factory has been upgraded and will be put into operation in early 2008. Management announced a US$62.5 million investment to build an integrated sugar/ethanol processing plant. The “The West Vam Co Dong Industrial Processing Park” will cover an area 38 hectares and include:

• a sugar processing plant with a 6,000TMN capacity (expected to be completed by the end of 2009);

• an ethanol plant with capacity of 220,000 liters per day (expected to be completed in 2008);

• a furfural alcohol factory; • a fertilizer factory; • an animal feed factory; and • shipping docks and port facilities.

The project began in October 2007, and Bien Hoa is currently involved in site clearance. Sucrerie De Bourbon Tay Ninh (ticker: SBT.HM) holds 6.4% of the total domestic sugar market. Similarly to Lam Son Sugar and Bien Hoa Sugar, the company has

Figure 43. Sugar market is highly fragmented Figure 44. Domestic sugar price in the past 2 years

Others, 58.6%

Bien Hoa Sugar, 7.6%

Nagarjuna Intl 5.5%

Lam Son Sugar 9.0%

Nghe An Tate & Lyle Sugar JV,

7.6%

Sucrerie De Bourbon Tay Ninh,

6.4%

Vietnam Taiwan5.3%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Jan-0

6

Apr-0

6Ju

l-06

Oct-06

Jan-0

7

Apr-0

7Ju

l-07

Oct-07

Jan-0

8

VND

Sources: Horizon Securities, VASP Sources: MARD

Lam Son Sugar controls approximately 9% of the market



contracted farmers over an area of 14,500 hectares; to grow sugar cane. Contributing 90% to total sales, the Mimosa Sugar brand is the company’s major source of revenue. Total revenue in 2007 rose 13% compared to 2006. Management plans to invest over US$65 million to build a 504 million kWh per year thermal power plant, and a 30 million liters per year ethanol factory. 6.3 Confectionery: Severe competition among rivals

Vietnam’s confectionery industry is extremely fragmented, with hundreds of small regional producers. Major players count about 30 companies. Competition is intensifying as larger players have been spending heavily on advertising and marketing campaigns. Over the past five years, Vietnam’s confectionery industry has grown at an average rate of 7%. Driven by greater disposable income, consumption per capita reached 2kg per year in 2007

up from 1.25kg per year in 2003. Industry sales are seasonal as consumption increases significantly from the Mid-Autumn Festival (September) to Vietnam’s New Year (late January to mid-February). Figure 47. Listed companies in confectionery sector


Net sales (VNDmln)

EBITDA Margin

Net Profit Margin ROA ROE

IFS.HM INTERFOOD 195,948 723,272 15.0% 10.0% 9.7% 18.1%

BBC.HM BIEN HOA CONFECTIONERY 894,898 453,975 7.5% 5.5% 8.0% 12.8%

HHC.HN HAI HA CONFECTIONERY 218,453 341,248 NA 5.8% 10.9% 23.0%

KDC.HM KINH DO CORP 6,720,952 1,233,119 15.9% 19.5% 12.0% 15.8%

NKD.HM NORTH KINH DO 1,259,973 561,580 17.0% 14.1% 16.6% 34.4% Source: Horizon Securities, company’s data Kinh Do Corp (ticker: KDC.HM), by far the largest producer of snacks and confectionery products in Vietnam has 200 distributors and 65,000 retailers. The company manufactures a wide range of products such as cookies, cakes and snacks. From 2006 to 2007, KDC’s sales and net profit increased by 23.5% and 41% respectively. The company exports to countries in Asia, Europe and North America. In August 2007, Kinh Do signed a joint-venture with Cadbury to become its exclusive distributor in Vietnam. The company has also expanded into real estate, investing in and building office, apartment, and retail space. North Kinh Do (ticker: NKD.HM), a subsidiary of Kinh Do Corp. is the second biggest player in the market. With 46 distributors, 5 bakeries and more than 12,000 retail outlets, the company controls about 30% of the northern market. In 2007 revenue reached VND566 billion (US$34.75 million), increasing by 31.2% yoy. In April 2007, management announced that together with Tribeco, the company would establish North Tribeco, a beverage company focusing on the northern market. North Kinh Do would own 15% of the newly established North Tribeco. Bien Hoa Confection (ticker: BBC.HM) is the third largest confectionery company capable of producing 45 tons of sweets, cakes and nutritional foods and 18 tons malt per day. Revenue in 2007 increased 33% yoy and BBC has gained 7% of the domestic market and has been exporting its products to over twenty countries.

Figure 46. Key player market shares

NKD11.0%

BBC7.0%

HHC6.5%

Others53.0%

KDC20.0%

IFS2.5%

Source: Horizon Securities estimate

Kinh Do signed a joint venture with Cadbury to become its exclusive distributor in Vietnam

North Kinh Do controls about 30% of the northern market



Hai Ha Confectionery (ticker: HHC.HN) is a large confectionery in North of Vietnam with total capacity of 70 tons per day. In order to increase its output and expand its market share, the company has invested close to US$1.75 million in new machinery and new production lines. HHC’s net income in 2007 jumped 31% to VND19.7 billion (US$1.23 million). 6.4 Aquaculture processing: Vietnam’s fourth largest income Aquaculture is the country’s fourth largest revenue earner putting Vietnam in the world’s top 10 seafood exporter. Vietnam has more than 450 aquaculture processing and exporting companies but there are very few vertically integrated players. In 2006, because total processing capacity had jumped 20% while fish farmers had only increased output by 7.6%, many aquaproducts processors were operating at 30% to 50% under capacity. There is some level of upstream integration between processors and farmers to the extent that processors often assist farmers by providing training, veterinary counseling, and access to feed and inputs at bargain prices. Farmers, on the other hand, will sell their fish at market price, typically selling to their partner-processor. Processors win by ensuring stable raw materials supply. Some processors are currently planning to integrate upstream by farming fish themselves.

Figure 50. Listed companies in fishery sector


Net sales (VNDmln)

EBITDA Margin

Net Profit

Margin ROA ROE

ABT.HM BENTRE AQUAPRODUCT IMPORT EXPORT 441,000 429,706 7.5% 9.5% 15.3% 22.8%

ACL.HM CUU LONG FISH CORP. 612,000 537,449 13.0% 10.4% 31.4% 60.9%

AGF.HM ANGIANG FISHERIES IMPORT & EXPORT 681,542 1,233,734 5.8% 3.2% 6.0% 8.6%

ANV.HM NAM VIET CORPORATION 4,719,000 3,193,437 12.2% 12.1% 22.9% 30.8%

FBT.HM FAQUIMEX 390,000 NA NA NA NA NA

FMC.HM SAO TA FOODS 255,990 999,764 NA 2.8% 9.2% 19.9%

ICF.HM INVESTMENT COMMERCE FISHERIES CORP 265,500 326,025 NA 6.0% 7.0% 15.0%

MPC.HM MINH PHU SEAFOOD 2,527,000 NA NA NA NA NA

SJ1.HM SEAFOOD NO.1 111,650 145,553 4.3% 4.0% 9.1% 11.2%

TS4.HM SEAFOOD NO.4 128,581 172,904 5.8% 4.6% 6.8% 9.6%

VHC.HM VINH HOANG 1,230,000 NA NA NA NA NA

LAF.HM LAFOOCO LONG AN FOOD PROCESSING EXPORT 202,962 626,503 NA 3.0% 14.0% 26.0% Source: Horizon Securities, company’s data With a current processing capacity of 700 tons per day, Nam Viet Corporation is Vietnam’s largest basa fish processing and exporting company. NAV’s 2007 sales figures increased by 18% compared to 2006. The company is heavily dependant on exports, which represent on average 60% of total revenue. Exports markets are mostly in Asia and Europe. For 2008, management intends to build a commercial feed factory with a capacity of 750,000 tons per year. Management wants to solidify ties with farmers they depend on, by offering them feed input. NAV will be able to manufacture feed by utilizing its discarded waste from its fish processing activity.

Figure 48. Vietnam aquaculture export Figure 49. Production of aquatic product

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

2000 2001 2002 2003 2004 2005 2006 2007E

USD

mln

14.74% CAGR

0

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3,500

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

'000

tons

Oceanic f isheries Fish farming Shrimp farming

Source: Ministry of Aquaculture Source: GSO



Figure 51. Exports represent a significant portion of aquaculture processors’ total revenue

Code Companies Export revenue as % of total revenue

Main products

ANV NAM VIET CORPORATION 65.00% basa fish

VHC VINH HOAN CORP. 92.23% basa fish

ICF INVESTMENT COMMERCE FISHERIES CORP. 96.00% shrimp, fish

ABT BENTRE AQUAPRODUCT IMPORT & EXPORT JSC. 98.04% ark shell

MPC MINH PHU SEAFOOD CORP 94.20% shrimp

AGF AN GIANG FISHERIES IMPORT & EXPORT JSC 80.00% basa fish

ACL CUULONG FISH JSC 95.00% basa fish

FMC SAO TA FOODS JSC 98.00% shrimp

FBT BEN TRE FORESTRY & AQUAPRODUCT IMPORT EXPORT 88.42% basa fish Source: Horizon Securities, Company data 2007 Antibiotic residue in seafood & anti-dumping tariff: Major threat to aquaculture industry Japan is currently the third largest market for Vietnam’s aquaculture exports. However, shrimp exports to Japan fell 15.6% because Vietnamese products were repeatedly found to have traces of antibiotics. Japan now tests 100% of aquaculture products from Vietnam, for animal chemicals. Another major concern for Vietnam’s aquaculture industry is the dumping charges in the US. Since the US placed anti-dumping tariffs on Vietnamese companies, aquaculture exports to the US have decreased significantly. 6.5 Soft drink: Still enough room for local players to growth The sector is dominated by Coca Cola Vietnam and Pepsi International Vietnam, who jointly share 84% of the soft drink (sparkling) market. The remaining 16% is divided between a host of local players. To avoid direct competition with the giants, the domestic companies have been focusing on niche markets. TNS Worldpanel estimates that Vietnam’s carbonated soft drink market will grow at 5% to 10% per year, while the non-sparkling segment should grow at 20-25%. Figure 52. Listed companies in soft-drink sector


Net sales (VNDmln)

EBITDA Margin Net Profit Margin ROA ROE

SCD.HM CHUONG DUONG BEVERAGE 227,800 238,894 NA 9.2% 14.4% 18.9%

TRI.HM TRIBECO SAIGON BEVERAGE 275,515 384,639 NA 4.0% 3.5% 14.2%

IFS.HM INTERFOOD 195,948 723,272 15.0% 10.0% 9.7% 18.1% Source: Horizon Securities, Company data Having lost market share to Coca Cola and Pepsi when they entered Vietnam in 1990’s, Tribeco Beverage (ticker: TRI.HM) turned to soymilk products for which it has built a popular brand. The company reported US$24.9 million revenue in 2007, up 31.8% from 2006. The company plans to invest over US$20 million to build two new factories with total capacity of 39 million cases per year. Net sales in 2007 increased to US$24mln from US$18.36mln in 2006, representing 30.9% growth. Chuong Duong Beverage (ticker: SCD.HM) focuses on sarsaparilla-based drinks. The company also intends to construct a new factory, with a capacity of 100 million liters per year, worth US$22.8mln. Sales have been growing at 27% CAGR since 2005, and the company has been able to maintain operating margins around 8%. Interfood Shareholding Co. (ticker: IFS.HM) owns the Wonderfarm brand and produces a wide range of tropical fruit juices, coffees, canned bird's nest drinks, winter melon tea, and a Korean ginger drink. Operating profit grew 22% from 2006 to 2007, and the company maintained its operating margin at 12% of sales. Among the unlisted companies, Tan Hiep Phat Group is worth mentioning. THP Group is a private, diversified beverage company with strong brand names in soft drinks

…carbonated soft drink market will grow at 5% to 10% per year and non-sparkling segment expect to grow at 20 -25%

Tan Hiep Phat Group owns Number One Energy, which holds 30% to 40% of the energy drink market

The company reported US$24.9 million revenue in 2007, up 31.8% from 2006.



and beer. It manufactures the Number One Energy drink, which holds 30% to 40% of the energy drink market. THP Group also manufactures the O Degree Green Tea, which was the fastest growing brand in Vietnam between 2006 and 2007. The group’s owns three beer brands; Ben Thanh Beer, Ben Thanh Gold, and Laser.

VII. Distribution: The rise of supermarkets We estimate that total retail sales in Vietnam reached US$36bln in 2007, growing at over 21% CAGR in the last five years. The food retailing sector has grown at 11%, reaching US$10.2bln in 2006. Even though traditional wet markets still dominate retail trade, Vietnam’s supermarkets are becoming more popular among urbanites. Since 1993, when the first supermarket opened its doors, there has been a significant increase in the number of supermarkets. Global chains, namely Big C and Metro, have been in the country for years and have been increasing their foothold. Local chains, like Co-op Mart, have been aggressively opening new stores in large and intermediate cities in the South of Vietnam. Currently, there are more than 200 supermarkets all over the country. We believe the rise of supermarkets in Vietnam will affect the whole agribusiness value-chain. As modern procurement systems invariably exert more demanding requirements from processors and farmers, there will be a need for increased investments and changes in current practices. We see greater demand for industrial farming, cold storage and warehousing, processing facilities, and logistics. As supermarkets tend to source products from medium to large processors and wholesalers, we believe there will be opportunities for a greater level of integration along the supply chain. Figure 53. Traditional shopping still dominates Vietnam

Figure 54. …but modern shopping trend is on the rise

Japan

Korea

India

Hong Kong

Tai wanSingapore

Australia

Philipines

Thailand

NZ

Malaysia

Vietnam

Indonesia

Traditional Grocery Stores - Regular users %

Wet

Mar

kets

- R

egul

ar u

sers

%

50%

50%

0

20

40

60

80

100

120

140

2001 2002 2003 2004 2005 2006

No.of supermarkets No. of department stores

Source: AC Nielsen Source: Euromonitor Currently, there are no listed companies operating in the distribution business. Co-op Mart is the market leader with more than 24 supermarkets and 34 convenience stores in operation. Total turnover of Co-op Mart last year was around US$200mln. Figure 55. Modern trading form is changing agribusiness value chain


Farmers/Co-operatives

Retailers/Supermarkets/

Hypermarkets

Consumers

Farmers/Co-operatives

Farm collectors

Wholesalers

Wet markets Street vendors Groceries

Consumers Consumers Consumers

…modern shopping form is becoming more popular among urbanites



Figure 56. List of major supermarkets, hypermarkets and department stores in Vietnam Retailer Name Ownership No. of Outlets Estimated Sales

Turnover (US$mln) Locations and expansion plan Imported Food Purchasing Agent

COOPMART Local company operated under cooperative law

24 supermarkets34 convenient stores

200 - Mainly in HCMC (14 stores). - Just expanded to Can Tho, Long Xuyen, Phan Thiet, Gia Lai - Plan: other cities (Ben Tre, Buon Me Thuoc)

- Mainly from importers/distributor s and wholesalers. - Small portion of food imported directly

BigC (CORA) Local Joint Venture with Casino Group of France

5 Hypermarkets 1 Supermarket

> 65 - HCMC, Dong Nai, Hanoi, Hai Phong, Danang. - Plan: open 4 more stores.

- Mainly from importers/distributor s and wholesalers. - Small portion of food imported directly

Maximart An Phong Private-Owned Company

4 48 - HCMC, Nha Trang, Cantho, Binh Duong - Expand to Binh Duong soon

- Mainly from importers/distributor s and wholesalers.

Citimart Private-Owned Company 12 Supermarkets 4 minimarts

38 - HCMC, Hanoi, Can THo, Dong Thap - Mainly from importers and distributors

Intimex Joint-Stock Company 10 25 Hanoi, Haiphong, Hai Duong, Nghe An, Danang

- Mainly from importers and distributors

FIVIMART Private-Owned Company 10 25 - Hanoi, HCMC, Binh Duong - Mainly from importers and distributors

Binh Dan Supermarkets Private-Owned Company 2 N/A -HCMC - Mainly from importers and distributors

SATRA Supermarkets State-owned Company 2 N/A - HCMC - Mainly from importers and distributors

Select Supermarts Private-Owned Company 5 supermarkets5 minimarts

N/A -HCMC - Mainly from importers and distributors

Metro Cash & Carry 100% Foreign Invested Company (Germany)

8 >350 - HCMC, Hanoi, Hai Phong, Cantho, Danang. - Plan: open 4 more stores in HCMC, Hanoi, Dong Nai

- Mainly from importers and distributors. - Direct imports for fresh and frozen products.

SEYU Supermarket Local Joint-Venture with Seyu of Japan

1 N/A - Hanoi - Mainly from importers and distributors.

PAKSON Local Joint-Venture with Pakson of Malaysia

3 N/A - HCMC, hai Phong. - Plan: open a total of 10 stores.

- Mainly from importers and distributors.

VINATEX State-owned company 20 supermarkets 10 minimarts

N/A HCMC, Dong Nai - Mainly from importers and distributors.

HAPRO State-owned company 7 Hapromarts and 18 convenient stores

7 - Mainly from importers and distributors

Wellcome Supermaket (Dairy Farm)

Business Cooperation Contract with Citimart

1 N/A - HCMC. -Plan: open a total of 6 stores in Vietnam for the first phase.

- Mainly from importers and distributors

Source: USDA Foreign Agricultural Service



VIII. Companies in focus



Figure 57. Return on Agribusiness stocks

Price (VND)22-Feb-08 1M 3M 6M 12M 1M 3M 6M

DPM.HM PVFCCo Fertilizer (urea) 56,500 380,000,000 21,470,000 1,342 842,584 -7% -28% N/A N/A 3% 2% N/AHSI.HM MF JSC Fertilizer (NPK) 27,500 10,000,000 275,000 17 31,750 -2% N/A N/A N/A 8% N/A N/ATSC.HM TSC Fertilizer (trading) 83,500 8,312,915 694,128 43 36,298 -1% -11% N/A N/A 9% 20% N/AHAI.HN HAI Crop protection 49,000 11,400,000 558,600 35 13,887 -13% -28% -14% -28% -2% 2% -10%NSC.HM NSC Seed 34,400 3,600,000 123,840 8 12,328 -8% -27% -7% -27% 3% 4% 17%SSC.HM SOUTHERN SEED Seed 42,100 10,000,000 421,000 26 8,074 -13% -39% -25% -43% -3% -8% -1%TRI.HM TRIBECO SAIGON Berverage 36,500 7,548,360 275,515 17 10,906 -15% -21% -10% -20% -5% 10% 14%SCD.HM CHUONG DUONG BEV. Berverage 26,800 8,500,000 227,800 14 19,826 -11% -36% -32% -59% -1% -5% -8%VTL.HN THANG LONG JSC Berverage 41,000 1,800,000 73,800 5 3,490 -7% -11% 24% -5% 5% 19% 29%VDL.HN LAM DONG FOOD Berverage 73,500 1,200,000 88,200 6 13,600 -10% N/A N/A N/A 2% N/A N/AIFS.HM INTERFOOD Berverage 28,500 6,875,359 195,948 12 9,010 -14% -27% -22% -28% -4% 4% 2%VNM.HM VINAMILK Dairy 114,000 175,275,670 19,981,426 1,249 141,460 -12% -34% -30% -42% -2% -3% -6%HNM.HN HANOIMILK Dairy 24,600 7,049,500 173,418 11 29,663 -11% -35% -20% -53% 1% -5% -15%KDC.HM KINH DO CORP Confectionery 143,000 46,999,665 6,720,952 420 45,456 -7% -29% -42% -21% 4% 2% -18%NKD.HM NORTH KINH DO Confectionery 125,000 10,079,782 1,259,973 79 9,299 -14% -34% -47% -15% -4% -3% -23%BBC.HM BIEN HOA CONF. Confectionery 85,000 10,528,208 894,898 56 23,805 10% -12% 22% 80% 20% 19% 46%HHC.HN HAI HA CONF. Confectionery 39,900 5,475,000 218,453 14 15,560 -5% -31% N/A N/A 7% -1% N/AABT.HM BENTRE AQUATEX Aquaculture 70,000 6,299,999 441,000 28 17,287 -1% -22% -29% -41% 9% 9% -5%ICF.HM INVESTMENT COM. Aquaculture 22,500 11,800,000 265,500 17 32,516 -17% -50% -16% -44% -7% -19% 8%ANV.HM NAM VIET CORP Aquaculture 71,500 66,000,000 4,719,000 295 73,755 -12% N/A N/A N/A -2% N/A N/AMPC.HM MINH PHU SEAFOOD Aquaculture 36,100 70,000,000 2,527,000 158 58,178 -21% -47% -28% -45% -11% -17% -4%VHC.HM VINH HOANG Aquaculture 41,000 30,000,000 1,230,000 77 33,194 -12% N/A N/A N/A -2% N/A N/AAGF.HM AN GIANG FISH. Aquaculture 53,000 12,859,288 681,542 43 17,017 -20% -40% -46% -59% -10% -10% -22%ACL.HM CUU LONG FISH. Aquaculture 68,000 9,000,000 612,000 38 20,192 -6% -20% N/A N/A 4% 11% N/ATS4.HM SEAFOOD NO.4 Aquaculture 23,600 5,448,355 128,581 8 11,621 -9% -37% -26% -11% 1% -6% -3%SJ1.HM SEAFOOD NO.1 Aquaculture 31,900 3,500,000 111,650 7 4,816 -9% -24% -16% -29% 1% 7% 7%FMC.HM SAO TA FOOD Aquaculture 37,100 6,900,000 255,990 16 13,428 -7% -31% -26% -53% 3% -1% -2%FBT.HM FAQUIMEX Aquaculture 26,000 15,000,000 390,000 24 N/A -14% N/A N/A N/A -4% N/A N/ALAF.HM LAFOOCO LONG AN Aquaculture 35,000 5,798,901 202,962 13 68,077 -15% -15% 98% 56% -5% 15% 122%SGC.HM SA GIANG IM. Food processor 47,500 4,088,700 194,213 12 3,514 -8% -19% 14% -18% 2% 11% 38%SAF.HM SAFOCO Food processor 40,800 2,706,000 110,405 7 2,983 -22% -24% 2% -16% -12% 6% 26%CAN.HM HALONG FOOD Food processor 21,000 5,000,000 105,000 7 15,766 -8% -25% -22% -40% 2% 6% 2%TAC.HM TUONG AN OIL Cooking oil 113,000 18,890,200 2,134,593 133 61,952 3% -16% -9% 75% 13% 14% 15%LSS.HM LAM SON SUGAR Sugar 30,000 30,000,000 900,000 56 N/A -8% N/A N/A N/A 2% N/A N/ABHS.HM BIEN HOA SUGAR Sugar 36,500 16,847,727 614,942 38 20,711 -9% -30% -14% -28% 1% 0% 10%SBT.HM BOURBON TAYNINH Sugar 21,700 44,824,172 972,685 61 N/A N/A N/A N/A N/A N/A N/A N/ANotes: SBT price was on 27-Feb-2008

Absolute performance (%) Relative to VNI/HASTC IndTicker Company name Subsector

Market Cap (mln'USD)

Avg. volume (30 days)

Outstanding shares

Market cap (mln'VND)

Source: Horizon Securities, Reuters, Company’s data



Figure 58. Agribusiness shares absolute performance (Top 10 companies) 3Q 2006 4Q 2006 1Q 2007

Ticker Abs per(%) Ticker Abs per(%) Ticker Abs per(%) AGF.HM 27% KDC.HM 69% VTL.HN 123% CAN.HM 21% NKD.HM 64% LAF.HM 76% BBC.HM 12% VNM.HM 51% TS4.HM 66% SSC.HM 6% AGF.HM 41% SSC.HM 59% VNM.HM 4% TRI.HM 24% BBC.HM 59% NKD.HM 2% BBC.HM 14% VNM.HM 55% KDC.HM -1% SSC.HM 8% TRI.HM 55% LAF.HM -4% TS4.HM -2% NSC.HM 46% TRI.HM -6% SGC.HM -17% SJ1.HM 45% VTL.HN -14% CAN.HM -20% CAN.HM 44%

2Q 2007 3Q 2007 4Q 2007

Ticker Abs per(%) Ticker Abs per(%) Ticker Abs per(%) KDC.HM 44% TAC.HM 131% LAF.HM 121% TS4.HM 27% BBC.HM 100% SAF.HM 21% NKD.HM 21% HNM.HN 50% SGC.HM 16% IFS.HM 5% NKD.HM 41% NST.HN 16% TAC.HM 4% ICF.HM 32% NSC.HM 1% HAI.HN 3% VTL.HN 31% BBC.HM 0% ABT.HM 2% LAF.HM 26% SSC.HM -1% MPC.HM 2% BHS.HM 23% BHS.HM -3% VNM.HM 0% CAN.HM 21% HAI.HN -4% TRI.HM -2% SGC.HM 16% VTL.HN -8%

Source: Horizon Securities, Reuters



NSC – NATIONAL SEED JOINT STOCK COMPANY Market: HOSE

Sector: Seed

HRS Equity Research

29th February 2008

Daily QNSC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QNSC.HM, Last Trade(Last)2/22/2008, 34,400Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

032,000

36,000

40,000

44,000

48,000

52,000

56,000

PriceVND

.12

700

750

800

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900

950

1,000

1,050

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Vol, QNSC.HM, Last Trade2/22/2008, 20,120

VolumeVND

.1234

50,000

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150,000

02 16 01 26 16 02 16 02 16 01 18 02 16 01 16 04 17 01 16 01 16 03 17 02 16 01 18Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08

Source: Reuters

Stock profile/ StatisticsReuter ticker NSC .HMPrice Last (V ND): 22-Feb-08 34,400 52 W k high (V ND): 21-Mar-07 61,547 52 W k low (V ND): 22-Feb-08 34,400 Market capital:(mln' dongs) 123,840 O utstanding Share 3,600,000 F ree float 3,900,000 Beta 1.02 3 months average daily volume 30,124 C urrent room for foreign investor 1,727,116 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) -22% -8% -27% -7%Index change (% ) -24% -10% -31% -24%Relative (% ) 2% 3% 4% 17% Key Indicators 2005 2006 2007*Net Sales 102,579 96,552 140,388 Sales growth (%) N/A -5.9% 45.4%EPS growth (%) N/A N/A -43.6%P/E (x) N/A 5.09 x 9.02 xP/CF (x) N/A -5.00 x 46.33 xEV/EBIDA (x) N/A 10.23 x 11.20 xDPS (VND) N/A 1,050 1,900 DY (%) N/A 3.1% 5.5%Net gearing (%) 5.8% 2.1% 1.7%Altman Z-score N/A 2.92 3.75ROE (%) 29.8% 17.0% 18.9%BV (VND) N/A 39,724 20,161 P/BV (x) N/A 0.87 x 1.71 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

In Dec 2007, the company issued 600,000 additional shares to increase charter capital up to VND60bln (US$3.75mln) for investing in the construction of the Dong Van industrial park. This project plans to be executed in 2008.

The company is planning to acquire other domestic seed companies.

Business summary

National Seed JSC, established in 1968, is headquartered in Hanoi, and has three plants, two branches, one experimental farm, and one representative office in Laos. In December 2006, NSC was listed on HOSE.

It is mainly involved in producing and trading agricultural seeds and other planting materials and equipments.

In 2007, the company reported revenue of VND140.39bln (US$8.75mln), increasing by 45.4% compared to 2006.

Ownership and major shareholders

Major holders are the State (13.5%) and BVF1 (6.7%).

Foreigners1%

Others85%

State14%

ManagementName Title Background Start date % of SharesMs. Tran Kim Lien Chairman, CEO Bachelor of Economic Jan-04 0.28%Ms. Pham Ngoc Ly Chief Accountant MBA Jan-04 0.28%Mr. Nguyen Hai Tho Chief of Compliance Bachelor of Economic Apr-07 0.14% Source: Company data



Financial Data Cashflow (VND'mln) 2005 2006 2007*

Collections from AR 93,852 91,873 117,902 Payment for AP (80,960) (95,016) (105,381) Payment for employees salaries (4,758) (7,223) (9,070) Payment for interest expense (22) (94) (33) Payment for enterprise tax - (726) (1,164) activities 49 17,269 41,538 operating activities (2,541) (16,862) (41,153)

Net cash flows from (used in) operating activities 5,620 (10,779) 2,639 Net cash flows from (used in) investing activities (1,045) (8,295) 3,084 Net cash flows from (used in) financing activities (1,730) 26,249 (6,153) Net increase (decrease) in cash and cash equivalents 2,845 7,175 (430)

Income Statement (VND'mln) 2005 2006 2007*Net Sales 102,579 96,552 140,388

COGS (73,011) (71,945) (98,359) Gross profit 29,568 24,607 42,028

Operating expenses (20,611) (18,545) (29,321) EBIT 8,957 6,062 12,708 Net Interest (94) (22) (70)

Interest income - - - Interest expense (94) (22) (70)

Net Investment income (loss) (97) 479 788 Net other non-op. JV+Assoc. - - - Net exceptionals 214 4,048 49 Profit (loss) before tax 9,074 10,589 13,545 Income taxes (1,165) - - Minority Interest - - - Net profit (loss) after tax 7,909 10,589 13,545 EBITDA N/A 7,217 13,968 EPS basic (VND) N/A 6,758 3,812 EPS fully diluted (VND) N/A 6,758 3,812

Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 65,681 95,644 118,922 Current Assets 53,635 83,377 101,421

Cash & ST investment 6,252 20,943 13,013 Stock & debtors 47,043 62,167 88,408 Others 340 267 -

Non-Current Assets 12,046 12,267 17,502 Investment properties - - 400 LT invesments 1,818 1,818 5,762 Fixed Asset 10,207 10,416 11,294 LT receivales - - - Others 21 33 47

Total liabilities 39,149 33,406 47,282 Current Liabilities 37,611 32,097 46,067

AP 16,535 15,621 30,944 ST borrowings - - - Others 21,076 16,476 15,123

Non-Current Liabilities 1,538 1,309 1,215 Long term debts 1,538 1,309 1,215 Others - - -

Owners’ Equity 26,532 62,238 71,641 Paid-in capital 14,120 30,000 36,000 Reserve 1,823 9,564 6,162 Undistributed earnings 10,589 6,705 10,360 Others - 15,969 19,119

Source: Company data, Horizon Securities; (*) Unaudited

Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -5.9% 45.4%Operating profit N/A -26.2% 106.3%EBITDA N/A N/A 93.5%Net profit N/A 33.9% 27.9%EPS N/A N/A -43.6%Profitability (%)Gross Margin 28.8% 25.5% 29.9%Operating Margin 8.7% 6.3% 9.1%EBITDA Margin N/A 7.5% 9.9%Net Profit Margin 7.7% 11.0% 9.6%ROA 24.1% 13.1% 12.6%ROE 59.6% 23.9% 20.2%Liquidity and SolvencyGross debt/equity (%) 147.6% 53.7% 66.0%Net debt/equity (%) 124.0% 32.1% 47.8%Int. coverage (x) 95.29 x 275.55 x 181.03 xCF int. coverage (x) 256.45 x -113.67 x 79.77 xCurrent ratio (x) 1.43 x 2.60 x 2.20 xQuick ratio (x) 1.24 x 2.19 x 1.84 xNet debt (VND'mln) 32,897 19,963 34,269 Per share data (VND)EPS basic N/A 6,758 3,812 EPS fully diluted N/A 6,758 3,812 CFPS N/A (6,880) 743 Book value N/A 39,724 20,161 Sales per share N/A 61,624 39,507 EBITDA per share N/A 4,606 3,931 DPS N/A 1,050 1,900 Average O/S shares N/A 1,566,780 3,553,479



SSC – SOUTHERN SEED JOINT STOCK COMPANY Market: HOSE

Sector: Seed

HRS Equity Research

29th February 2008

Daily QSSC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSSC.HM, Last Trade(Last)2/22/2008, 42,100Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

040,000

45,000

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PriceVND

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Vol, QSSC.HM, Last Trade2/22/2008, 20,550

VolumeVND

.1234

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Source: Reuters

Stock profile/ StatisticsReuter ticker SSC .HMPrice Last (V ND): 22-Feb-08 42,100 52 W k high (V ND): 15-May-07 85,500 52 W k low (V ND): 22-Feb-08 42,100 Market capital:(mln' dongs) 421,000 O utstanding Share 10,000,000 F ree float 5,300,000 Beta 1.05 3 months average daily volume 16,763 C urrent room for foreign investor 627,920 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) -35% -13% -39% -25%Index change (% ) -24% -10% -31% -24%Relative (% ) -11% -3% -8% -1% Key Indicators 2005 2006 2007*Net Sales 127,919 129,861 155,857 Sales growth (%) N/A 1.5% 20.0%EPS growth (%) N/A N/A -30.1%P/E (x) N/A 13.13 x 18.78 xP/CF (x) N/A 11.74 x 14.50 xEV/EBIDA (x) N/A 10.02 x N/ADPS (VND) N/A 2,000 1,200 DY (%) N/A 4.8% 2.9%Net gearing (%) N/A 3.1% 5.3%Altman Z-score N/A 8.38 10.07ROE (%) 20.3% 16.4% 17.6%BV (VND) N/A 19,542 12,760 P/BV (x) N/A 2.15 x 3.30 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Projects and investments

The company has invested in a trading center and office building at 282 Le Van Sy, HCMC, cooperating with Daewon Group (Korea), with VND750bln (US$45mln) of total invested capital (Daewon invests 51%, SSC invests 49%). The project started at the end of 2007.

The management plans to issue additional shares to raise capital for the acquisition of Ha Tay Seed JSC.

Business summary

Headquartered in HCMC, Southern Seed JSC (SSC) was established in 1976. It was equitized in 2002 and shares were listed on HOSE three years later. The company develops and manufactures grain vegetables and fruits seeds and sells its products across Indochina. SSC holds 30.5% market share of hybrid corn.

In 2007, the company reported revenue of VND155.9bln (US$9.7mln), up 20% compared to 2006.


Major holders are SCIC (20%), Citigroup Global Market Ltd & Citigroup Global Market Financial Products Ltd (12.23%), Vietnam Emerging Equity Fund (5.08%) and PXP Vietnam Fund Ltd (5.02%).

Foreigners43%

Others37%

State20%

ManagementName Title Background Start date % of SharesMr. Ngo Van Giao Chairman, CEO Engineer Jul-02 0.25%Mr. Nguyen Tien Hiep Chief Accounting Bachelor of Economic 1996 0.20%Mr. Luu Khanh Nghia Chief of Compliance Bachelor of Economic Jul-02 0.15% Source: Company data




Collections from AR 116,794 128,227 154,916 Payment for AP (71,640) (56,945) (71,669) Payment for employees salaries (12,143) (16,740) (15,036) Payment for interest expense N/a (443) (709) Payment for enterprise tax (440) (262) (2,232) Other cash inflows from operating activities 7,175 12,969 16,072 Other cash outflows from operating activities (42,821) (45,287) (52,832)

Net cash flows from (used in) operating activities (3,075) 21,520 28,512 Net cash flows from (used in) investing activities (1,951) (4,127) (14,674) Net cash flows from (used in) financing activities (13,035) (8,494) (8,998) Net increase (decrease) in cash and cash equivalents (18,062) 8,900 4,839



Operating expenses (19,848) (20,519) (26,367) EBIT 29,280 24,654 24,957 Net Interest - (443) (709)

Interest income - - - Interest expense - (443) (709)

Net Investment income (loss) 732 (741) (511) Net other non-op. JV+Assoc. - - - Net exceptionals 65 131 9 Profit (loss) before tax 30,077 24,044 24,455 Income taxes (8,421) (4,809) (2,446) Minority Interest - - - Net profit (loss) after tax 21,655 19,235 22,010 EBITDA N/A 26,759 N/AEPS basic (VND) N/A 3,206 2,241 EPS fully diluted (VND) N/A 3,206 2,241 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 127,103 141,437 156,248 Current Assets 82,518 92,768 92,058

Cash & ST investment 9,744 18,652 23,487 Stock & debtors 71,876 72,724 66,980 Others 898 1,392 1,591

Non-Current Assets 44,585 48,670 64,191 Investment properties - - - LT invesments 6 11 9,478 Fixed Asset 41,322 45,291 50,814 LT receivales - - - Others 3,257 3,368 3,899



Non-Current Liabilities 108 3,764 6,908 Long term debts - 3,580 6,630 Others 108 184 278

Owners’ Equity 106,628 117,253 125,303 Paid-in capital 60,000 60,000 100,000 Reserve 41,949 54,951 22,777 Undistributed earnings 4,151 1,773 2,008 Others 528 528 518


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 1.5% 20.0%Operating profit N/A -20.3% 2.2%EBITDA N/A N/A N/ANet profit N/A -11.2% 14.4%EPS N/A N/A -30.1%Profitability (%)Gross Margin 38.4% 34.8% 32.9%Operating Margin 22.9% 19.0% 16.0%EBITDA Margin N/A 20.6% N/ANet Profit Margin 16.9% 14.8% 14.1%ROA 34.1% 14.3% 14.8%ROE 40.6% 17.2% 18.1%Liquidity and SolvencyGross debt/equity (%) 19.2% 20.6% 24.7%Net debt/equity (%) 10.1% 13.2% 12.3%Int. coverage (x) N/A 55.65 x 35.22 xCF int. coverage (x) N/A 49.58 x 41.24 xCurrent ratio (x) 4.05 x 4.54 x 3.83 xQuick ratio (x) 1.90 x 2.19 x 2.09 xNet debt (VND'mln) 10,731 15,532 15,459 Per share data (VND)EPS basic N/A 3,206 2,241 EPS fully diluted N/A 3,206 2,241 CFPS N/A 3,587 2,904 Book value N/A 19,542 12,760 Sales per share N/A 21,644 15,872 EBITDA per share N/A 4,460 N/ADPS N/A 2,000 1,200 Average O/S shares N/A 6,000,000 9,819,734



DPM – PETROVIETNAM FERTILIZER AND CHEMICAL JOINT STOCK COMPANY

Market: HOSE

Sector: Fertilizers

HRS Equity Research

29th February 2008

Daily QDPM.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QDPM.HM, Last Trade(Last)2/22/2008, 56,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

055,000

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PriceVND

.12

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1,100

1,150

Vol, QDPM.HM, Last Trade2/22/2008, 1.9176M

VolumeVND

.1234

1M

1.5M

2M

16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 02 16 01Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08

Source: Reuter

Stock profile/ StatisticsReuter ticker DPM.HMPrice Last (VND): 22-Feb-08 56,500 52 Wk high (VND): - 52 Wk low (VND): - Market capital:(mln' dongs) 21,470,000 Outstanding Share 380,000,000 Free float - Beta N/A3 months average daily volume - Current room for foreign investor 148,459,413 Share performance (%) YTD 1M 3M 6MAbsolute (%) -24% -7% -28% N/AIndex change (%) -24% -10% -31% -24%Relative (%) 1% 3% 2% N/A Key Indicators 2005 2006 2007*Net Sales 2,537,555 3,050,829 3,779,038 Sales growth (%) N/A 20.2% 23.9%EPS growth (%) N/A 46.7% 13.7%P/E (x) 27.11 x 18.49 x 16.26 xP/CF (x) 16.01 x 9.37 x 16.25 xEV/EBIDA (x) 13.96 x 11.67 x N/ADPS (VND) - - - DY (%) 0.0% 0.0% 0.0%Net gearing (%) 0.0% 0.0% 0.0%Altman Z-score 5.41 7.72 11.13ROE (%) 21.6% 24.9% 30.2%BV (VND) 9,658 12,264 11,496 P/BV (x) 5.85 x 4.61 x 4.91 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Petrovietnam Fertilizer and Chemical JSC (DPM) manufactures agricultural chemicals including nitrogen fertilizer, liquefied gas and ammoniac. It also offers technical support for manufacturing fertilizers and other related chemicals.

As of 2006, 77.7% of the total revenue came from sale and manufacturing of urea fertilizers and 45% of the market share belongs to the Company.

Headquartered in Ho Chi Minh City, the Company is a member of Vietnam Oil and Gas Corporation, and has been listed on the Ho Chi Minh Stock Exchange Centre since November 2007.

In 2007, DPM reported VND3779bln (US$236.2mln) net sales, up 23.9% compared to 2006. The expected growth in 2008 is 16.5%.


Most of DPM shares are owned by the State (61.4%), BIDV (3.7%), and Petrovietnam Finance Corporation (PVFC) (1.7%).

Foreigners10%

Others30%

State60%

Source: Company data

ManagementName Title Background Start date % of SharesMr. Dinh Huu Loc Chairman Engineer 2004 0.001%Mr. Phan Dinh Duc CEO Bachelor of business N/A N/AMr. Hinh Kim Nhan Chief Accountant Bachelor of business 2004 - Ms. Nguyen Thi Hien Chief of Compliance Bachelor of business 2005 0.001% Source: Company data


DPM will invest VND3200bln (US$200mln) in a melamine resin manufacturing facility. The construction is expected to start in 2008.

DPM is increasing capacity of its existing fertilizer factory. This project will require VND800bln (US$50mln) and will be completed in 2009. The new facility will add 125,000 tons of urea per year.

DPM is investing in an 11,624m2 office building in Pho Quang St., HCMC with an initial investment of VND395.2bln (US$24.7mln). The project started in 2007 and will be completed in 2009.

DPM is investing a total of VND788.8bln (US$49.3mln) in new factories to produce pure CO2, argon, sulphuric acid, and amon sulphate.



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 1,340,705 2,291,791 N/A

Profit (loss) before tax 791,819 1,161,497 1,320,998 Depreciation & amortisation 943,212 944,774 N/AChange in working capital (394,326) 185,520 N/AOthers - - N/A

Investment CF (1,352,158) 342,453 N/AFinancing CF (506,198) (1,107,039) N/A

Net increase (decrease) in cash and equivalents (517,651) 1,320,998 N/A

Income Statement (VND'mln) 2005 2006 2007*Net Sales 2,537,555 3,050,829 3,779,038

COGS (1,635,169) (1,924,790) (2,298,181) Gross profit 902,386 1,126,039 1,480,857

Operating expenses (112,280) (206,274) (211,162) EBIT 790,106 919,765 1,269,695 Net Interest (144,885) (146,180) -

Interest income - - - Interest expense (144,885) (146,180) -

Net Investment income (loss) (95,899) (98,788) 43,688 Net other non-op. JV+Assoc. - - - Net exceptionals 97,612 340,520 7,615 Profit (loss) before tax 791,819 1,161,497 1,320,998 Income taxes - (189) (203) Minority Interest - - - Net profit (loss) after tax 791,819 1,161,308 1,320,795 EBITDA 1,733,318 1,864,539 N/AEPS basic (VND) 2,084 3,056 3,476 EPS fully diluted (VND) 2,084 3,056 3,476 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 6,582,689 6,665,757 5,741,316 Current Assets 2,072,504 3,299,698 2,467,577

Cash & ST investment 1,520,781 2,617,986 1,972,352 Stock & debtors 532,287 679,679 460,201 Others 19,436 2,033 35,024

Non-Current Assets 4,510,185 3,366,059 3,273,739 Investment properties - - - LT invesments - 29,900 24,425 Fixed Asset 4,495,227 3,323,244 2,780,644 LT receivales 19 24 - Others 14,939 12,891 468,670

Total liabilities 2,912,834 2,005,521 1,372,841 Current Liabilities 912,249 1,135,026 1,372,724

AP 45,117 63,782 151,258 ST borrowings 571,392 579,636 580,104 Others 295,740 491,608 641,362

Non-Current Liabilities 2,000,585 870,495 117 Long term debts - - - Others 2,000,585 870,495 117

Owners’ Equity 3,669,855 4,660,099 4,368,475 Paid-in capital 3,149,336 2,571,246 3,800,000 Reserve 506,541 2,088,853 6,456 Undistributed earnings 13,978 - 562,019 Others - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales growth (%) N/A 20.2% 23.9%Operating profit (%) N/A 18.3% 60.0%EBITDA N/A 7.6% N/ANet profit growth (%) N/A 46.7% 13.7%EPS N/A 46.7% 13.7%Profitability (%)Gross Margin 35.6% 36.9% 39.2%Operating Margin 31.1% 30.1% 33.6%EBITDA Margin 68.3% 61.1% N/ANet Profit Margin 31.2% 38.1% 35.0%ROA 24.1% 17.5% 21.3%ROE 43.2% 27.9% 29.3%Liquidity and SolvencyGross debt/equity (%) 79.4% 43.0% 31.4%Net debt/equity (%) 74.2% 6.2% 20.6%Int. coverage (x) 5.45 x 6.29 x N/ACF int. coverage (x) 10.25 x 16.68 x N/ACurrent ratio (x) 2.27 x 2.91 x 1.80 xQuick ratio (x) 1.72 x 2.69 x 1.48 xNet debt (VND'mln) 2,722,053 287,535 900,489 Per share data (VND)EPS basic 2,084 3,056 3,476 EPS fully diluted 2,084 3,056 3,476 CFPS 3,528 6,031 3,476 Book value 9,658 12,264 11,496 Sales per share 6,678 8,028 9,945 EBITDA per share 4,561 4,907 N/ADPS - - - Average O/S shares 380,000,000 380,000,000 380,000,000



HSI - GENERAL MATERIALS BIOCHEMISTRY FERTILIZER JOINT STOCK COMPANY

Market: HOSE

Sector: Fertilizers

HRS Equity Research

29th February 2008

Daily QHSI.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QHSI.HM, Last Trade(Last)2/22/2008, 27,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

27,000

30,000

33,000

36,000

39,000

42,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QHSI.HM, Last Trade2/22/2008, 62,030

VolumeVND

.123450,000

100,000

150,000

200,000

16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 02 16 01 18Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Source: Reuter

Stock profile/ StatisticsReuter ticker HSI.HMPrice Last (VND): 22-Feb-08 27,500 52 Wk high (VND): N/A52 Wk low (VND): N/AMarket capital:(mil' dongs) 275,000 Outstanding Share 10,000,000 Free float 8,100,000 Beta N/A3 months average daily volume - Current room for foreign investor 4,897,960 Share performance (%) YTD 1M 3M 6MAbsolute (%) -34% -2% N/A N/AIndex change (%) -24% -10% -31% -24%Relative (%) -9% 8% N/A N/A Key Indicators 2005 2006 2007*Net Sales 137,778 389,476 656,894 Sales growth (%) N/A 182.7% 68.7%EPS growth (%) N/A 148.8% 883.7%P/E (x) 268.82 x 108.06 x 10.98 xP/CF (x) 7.47 x -5.78 x 10.98 xEV/EBIDA (x) N/A N/A N/ADPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) - - - Altman Z-score 1.32 1.87 1.99 ROE (%) 5.1% 11.6% 18.5%BV (VND) 1,991 2,195 13,562 P/BV (x) 13.81 x 12.53 x 2.03 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesMr. Huỳnh Nghĩa Chairman BBA 1993 2.68%Mr. Đỗ Văn Ngọc Board member/ CEO BBA, BSc 2005 2.29%Ms. Nguyễn Anh Phượng Board member/ F&A Manager BBA 2000 0.20%Ms. Nguyễn Thị Kim Loan Compliance BSc 1999 0.24% Source: Company data

Business summary

As of the end of December 2007, General Materials Biochemistry Fertilizer JSC listed on HOSE with an initial capital of VND100bln (US$6.25mln). The company specializes in producing and dealing fertilizers, fertilizer materials and plant protection in chemicals.

HSI has a factory in Ho Chi Minh City and new ones in Phu Yen with total capacity of 480,0000 tons per year.

After setting up the new factory, its revenue increased about 3 times and with double profit. By HSI market research of fertilizers market, HSI is the second largest fertilizers producer in Vietnam with 15% market share. Furthermore, HSI also expand its market by exporting to its key export market - Cambodia with 6.2% of total sales. Besides, they also export to China and Australia. Its 2007 revenue was about VND VND700bln (US$44mln). Its planned revenue of 2008, and 2009 is continuously about VND1,300bln (US$84mln) and VND1,600bln (US$100mln).

Ownership and Major Shareholders

The SCIC is HSI’s largest shareholder with 9% of stake. And employees in HSI have hold 9% of listed share. The allowed share for foreign investor is still over 4mln.

foreigners1%

others80%

employee9%

State10%


Projects and Investments HSI has set up a new insecticide factory in Long An province with initial investment of VND11.5bln (US$718,000) at the end of 2007. This investment helps HSI to focus in new insecticide market. Beside that, HSI will invest in North-East of Cau River Industrial park in Phu Yen province. With 2,500,000 sqm, the North-East of Cau River Industrial park will develop central Vietnam. HSI’s contribution in this project is VND150bln (US$9.4mln). This project will begin at the end of March 2008. At the beginning of the above project, HSI also determine to invest in Cau River Port with total capital of VND528bln (US$33mln).



Financial Data Cashflow (VND'mln) 2005 2006 2007*Collections from AR 83,570 356,460 N/APayment for AP (40,781) (378,290) N/APayment for employees salaries (1,792) (5,242) N/APayment for interest expense (2,583) (13,032) N/APayment for enterprise tax - (470) N/AOther cash inflows from operating activities 672 20,596 N/AOther cash outflows from operating activities (2,278) (27,597) N/ANet cash flows from (used in) operating activities

36,808 (47,575) N/A

Net cash flows from (used in) investing activities

(1,976) (11,182) N/A

Net cash flows from (used in) financing activities

(37,096) 74,550 N/A

Net increase (decrease) in cash and cash equivalents

(2,264) 15,793 N/A



Operating expenses (1,639) (4,541) (10,101) EBIT 5,832 26,911 56,200 Net Interest (3,643) (19,105) -


Net Investment income (loss) (4,327) (23,997) (32,054) Net other non-op. JV+Assoc. - - - Net exceptionals (17) (369) 889 Profit (loss) before tax 1,488 2,545 25,035 Income taxes (465) - - Minority Interest - - - Net profit (loss) after tax 1,023 2,545 25,035 EBITDA N/A N/A N/AEPS basic (VND) 102 255 2,504 EPS fully dilutied (VND) 102 255 2,504 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 250,244 354,632 599,301 Current Assets 224,856 298,631 529,832


Non-Current Assets 25,388 56,001 69,469 Investment properties - - - LT invesments 300 495 1,578 Fixed Asset 24,897 55,226 67,611 LT receivales - 97 97 Others 191 183 183


AP 79,438 102,139 - ST borrowings 143,901 176,731 437,185 Others 6,996 11,076 -

Non-Current Liabilities - 42,737 26,497 Long term debts - - - Others - 42,737 26,497

Owners’ Equity 19,909 21,949 135,619 Paid-in capital 18,500 18,500 100,000 Reserve 731 1,773 1,866 Undistributed earnings 678 1,676 24,543 Others - - 9,210


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 182.7% 68.7%Operating profit N/A 93.6% 728.6%EBITDA N/A N/A N/ANet profit N/A 148.8% 883.7%EPS N/A 148.8% 883.7%Profitability (%)Gross Margin 5.4% 8.1% 10.1%Operating Margin 4.2% 6.9% 8.6%EBITDA Margin N/A N/A N/ANet Profit Margin 0.7% 0.7% 3.8%ROA 0.8% 0.8% 5.2%ROE 10.3% 12.2% 31.8%Liquidity and SolvencyGross debt/equity (%) 1156.9% 1515.7% 341.9%Net debt/equity (%) 1151.2% 1438.9% 302.1%Int. coverage (x) 1.60 x 1.41 x N/ACF int. coverage (x) -13.25 x 4.65 x N/ACurrent ratio (x) 0.98 x 1.03 x 1.21 xQuick ratio (x) 0.77 x 0.76 x 0.86 xNet debt (VND'mln) 229,200 315,823 409,694 Per share data (VND)EPS basic 102 255 2,504 EPS fully dilutied 102 255 2,504 CFPS 3,681 (4,758) 2,504 Book value 1,991 2,195 13,562 Sales per share 13,778 38,948 65,689 EBITDA per share N/A N/A N/ADPS (VND) N/A N/A N/AO/S shares 10,000,000 10,000,000 10,000,000



HAI – H.A.I JOINT STOCK COMPANY

Market: HASTC

Sector: Fertilizers

HRS Equity Research

29th February 2008

Daily QHAI.HN, Q.HASTCI 1/2/2007 - 2/22/2008 (BKK)

Line, QHAI.HN, Last Trade(Last)2/22/2008, 49,000Line, Q.HASTCI, Last Trade(Last)2/22/2008, 239.02

PriceVND

045,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

PriceVND

.12

240

270

300

330

360

390

420

450

Vol, QHAI.HN, Last Trade2/22/2008, 33,300

VolumeVND

.1234

50,000

100,000

150,000


Source: Reuter

Stock profile/ StatisticsReuter ticker HAI.HNPrice Last (VND): 22-Feb-08 49,000 52 Wk high (VND): 25-Oct-07 93,905 52 Wk low (VND): 21-Feb-08 48,600 Market capital:(mil' dongs) 558,600 Outstanding Share 11,400,000 Free float 2,500,000 Beta 1.03 3 months average daily volume 33,642 Current room for foreign investor 5,309,600 Share performance (%) YTD 1M 3M 6MAbsolute (%) -23% -13% -28% -14%Index change (%) -24% -12% -30% -5%Relative (%) 1% -2% 2% -10% Key Indicators 2005 2006 2007*Net Sales 358,864 415,502 496,545 Sales growth (%) N/A 15.8% 19.5%EPS growth (%) N/A 8.8% 17.6%P/E (x) 13.91 x 12.79 x 10.88 xP/CF (x) 18.06 x -9.58 x -380.78 xEV/EBIDA (x) N/A 22.60 x 16.06 xDPS (VND) - 1,000 1,000 DY (%) 0.0% 2.0% 2.0%Net gearing (%) 0.0% 0.0% 0.0%Altman Z-score 3.5 4.2 3.6ROE (%) 30.2% 27.9% 27.9%BV (VND) 11,672 13,752 16,131 P/BV (x) 4.20 x 3.56 x 3.04 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesMr. Dang Thanh Cuong Chairman Agricultural Engineer 1985 0.04%Mr. Dang Thanh Cuong CEO Agricultural Engineer 1985 0.04%Ms. Nguyen Thi Le Hang CFO Bachelor of Law 1985 0.88%Mr. Nguyen Tri Phuong Chief of Compliance Bachelor of Business N/A 0.13%

Business summary

H.A.I Joint Stock Company (HAI) mainly trades agricultural chemicals, including insecticides, fungicides, and fertilizers. It also sells plastic resin pellets and offers leasing service of warehouses and equipment.

Since December 2006, the Company listed its shares on Hanoi Securities Trading Centre. The Company is headquartered in Ho Chi Minh City and distributes its products directly to customers through its own nationwide network or through wholesalers.

It has 10-12% of the domestic market share and sales in 2007 reached VND496.5bln (US$31mln) which represents a 19.5% increase. In 2008, HAI plans to boost revenue and net income; sales are expected to reach VND576bln (US$36mln), while net income will be VND44.6bln (US$2.8mln).


Most of HAI shares are owned by the State (37%).

State37%

Others61%

Foreigners2%




The project “Agricultural Trading and Services Area” at 358 Kinh Duong Vuong, An Lac, Binh Tan District, HCMC will start in 2008 and be completed in late 2009.

HAI is expanding toward foreign markets. HAI is exporting and distributing products to Lao and Cambodian farmers. The revenues from these markets are expected to contribute 1-2% to total revenue.




Collections from AR 316,087 412,882 472,350 Payment for AP (269,397) (403,675) (410,866) Payment for employees salaries (5,974) (8,166) (9,403) Payment for interest expense (1,113) (2,896) (6,665) Payment for enterprise tax (3,666) - - Other cash inflows from operating activities 27,371 23,474 20,483 Other cash outflows from operating activities (32,370) (79,912) (67,366)

Net cash flows from (used in) operating activities 30,938 (58,293) (1,467) Net cash flows from (used in) investing activities (2,200) 789 (14,950) Net cash flows from (used in)financing activities 28,812 12,287 3,136 Net increase (decrease) in cash and cash equivalents 57,550 (45,217) (13,281)



Operating expenses (12,587) (27,021) (27,622) EBIT 44,600 29,648 46,080 Net Interest (1,113) (2,895) (7,533)

Interest income - - - Interest expense (1,113) (2,895) (7,533)

Net Investment income (loss) (1,243) (3,444) (7,969) Net other non-op. JV+Assoc. - - - Net exceptionals (12) 21,529 13,246 Profit (loss) before tax 43,345 47,733 51,357 Income taxes (3,194) (4,054) - Minority Interest - - - Net profit (loss) after tax 40,151 43,679 51,357 EBITDA N/A 30,802 47,302 EPS basic (VND) 3,522 3,831 4,505 EPS fully diluted (VND) 3,522 3,831 4,505 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 338,508 319,164 396,747 Current Assets 327,311 304,336 361,856

Cash & ST investment 70,113 24,908 11,607 Stock & debtors 250,662 276,236 345,355 Others 6,536 3,192 4,894

Non-Current Assets 11,197 14,828 34,891 Investment properties - - - LT invesments - 5 16,555 Fixed Asset 11,197 11,444 15,671 LT receivales - - - Others - 3,379 2,665



Non-Current Liabilities 32 40 100 Long term debts - - - Others 32 40 100

Owners’ Equity 133,062 156,772 183,890 Paid-in capital 114,000 114,000 114,000 Reserve 19,062 42,772 69,890 Undistributed earnings - - - Others - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 15.8% 19.5%Operating profit N/A -39.6% 45.4%EBITDA N/A N/A 53.6%Net profit N/A 8.8% 17.6%EPS N/A 8.8% 17.6%Profitability (%)Gross Margin 15.9% 13.6% 14.8%Operating Margin 12.4% 7.1% 9.3%EBITDA Margin N/A 7.4% 9.5%Net Profit Margin 11.2% 10.5% 10.3%ROA 23.7% 13.3% 14.3%ROE 60.3% 30.1% 30.2%Liquidity and SolvencyGross debt/equity (%) 154.4% 103.6% 115.8%Net debt/equity (%) 101.7% 87.7% 109.4%Int. coverage (x) 40.07 x 10.24 x 6.12 xCF int. coverage (x) 28.80 x -19.13 x 0.78 xCurrent ratio (x) 1.59 x 1.87 x 1.70 xQuick ratio (x) 0.87 x 0.90 x 0.80 xNet debt (VND'mln) 135,333 137,484 201,250 Per share data (VND)EPS basic 3,522 3,831 4,505 EPS fully diluted 3,522 3,831 4,505 CFPS 2,714 (5,113) (129) Book value 11,672 13,752 16,131 Sales per share 31,479 36,448 43,557 EBITDA per share N/A 2,702 4,149 DPS - 1,000 1,000 Average O/S shares 11,400,000 11,400,000 11,400,000



TSC – TECHNO – AGRICULTURAL SUPPLYING JOINT STOCK COMPANY

Market: HOSE

Sector: Fertilizers Trading

HRS Equity Research

29th February 2008

Daily QTSC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QTSC.HM, Last Trade(Last)2/22/2008, 83,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

50,000

60,000

70,000

80,000

90,000

100,000

110,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QTSC.HM, Last Trade2/22/2008, 35,400

VolumeVND

.1234

50,000

100,000

150,000


Source: Reuters

Stock profile/ StatisticsReuter ticker TSC.HMPrice Last (VND): 22-Feb-08 83,500 52 Wk high (VND): N/A52 Wk low (VND): N/AMarket capital:(mil' dongs) 694,128 Outstanding Share 8,312,915 Free float 2,700,000 Beta N/A3 months average daily volume 48,256 Current room for foreign investor 3,022,888 Share performance (%) YTD 1M 3M 6MAbsolute (%) -10% -1% -11% N/AIndex change (%) -24% -10% -31% -24%Relative (%) 14% 9% 20% N/A Key Indicators 2005 2006 2007*Net Sales 879,702 1,138,957 1,375,090 Sales growth (%) 34.8% 29.5% 20.7%EPS growth (%) N/A N/A N/AP/E (x) N/A N/A 8.95 xP/CF (x) N/A N/A -12.13 xEV/EBIDA (x) N/A N/A N/ADPS (VND) 1,921 1,884 4,000 DY (%) 2.3% 2.3% 4.8%Net gearing (%) 0.0% 0.0% 0.0%Altman Z-score N/A N/A 5.36ROE (%) 16.1% 15.0% 43.8%BV (VND) N/A N/A 21,296 P/BV (x) N/A N/A 3.92 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Revenues and profits

In 2008, the company plans to reach net revenue and net profit of VND1,553bln (US$97.06mln) and VND50bln (US$3.13mln), respectively.

Capital and dividend

The company plans to raise charter capital to VND200bln (US$12.5mln) this year.


Investing in Can Tho Securities JSC Company, for which TSC will hold 51% of the charter capital.

Business summary

Founded in 1976, the Techno- Agricultural Supplying JSC (TSC) is a state-owned company aiming to support the agriculture industry. TSC was equitized in 2003 and listed on HOSE in 2006. TSC, through its agents (mostly in the Mekong River Delta), engages in the importing fertilizers and exporting rice. Malaysia, Indonesia and Philippine are its main export markets. Revenue of fertilizers sales generates about 80% of TSC’s total revenue.

TSC is among the top five fertilizer import companies.

In 2007 the revenue and profit up 20% yoy and 451% yoy.


TSC’s key holders are the State (56.88%), Macquarie Bank Ltd. (9.33%), and Mr. Truong Tan Loc (6.77%).

Foreigners12%

Others31%

State57%

ManagementName Title Background Start date % of SharesMr. Pham Van Tuan Chairman&CEO MBA 1997 1.80%Mr. Ly Thanh Tung Deputy CEO Bachelor of business 1993 2.56%Ms.Tran Xuan Dieu Chief Accountant Bachelor of business 1993 0.12%Mr. Nguyen Tri Dung Chief of Compliance Bachelor of business 2004 0.41%





Collections from AR 944,213 1,135,248 1,402,205 Payment for AP (822,850) (924,061) (1,310,448) Payment for employees salaries (3,024) (2,761) (4,787) Payment for interest expense (14,181) (15,966) (17,632) Payment for enterprise tax (384) (1,695) (5,266) Other cash inflows from operating activities 57,341 127,357 75,395 Other cash outflows from operating activities (243,396) (291,836) (190,115)

Net cash flows from (used in) operating activities (82,281) 26,286 (50,648) Net cash flows from (used in) investing activities (13,528) (2,497) (11,187) Net cash flows from (used in) financing activities 104,032 (21,973) 66,122 Net increase (decrease)in cash and cash equivalents 8,223 1,816 4,287

Income Statement (VND'mln) 2005 2006 2007*Net Sales 879,702 1,138,957 1,375,090

COGS (854,703) (1,098,513) (1,252,296) Gross profit 24,999 40,444 122,794



Net Investment income (loss) (5,118) (4,427) (7,867) Net other non-op. JV+Assoc. - - - Net exceptionals 13,807 5,602 1,572 Profit (loss) before tax 13,309 13,686 79,972 Income taxes (452) (1,238) (11,329) Minority Interest - - - Net profit (loss) after tax 12,857 12,448 68,643 EBITDA N/A N/A N/AEPS basic (VND) N/A N/A 9,331 EPS fully diluted (VND) N/A N/A 9,331



Non-Current Assets 21,407 21,637 38,592 Investment properties - - - LT invesments 13,848 14,190 16,156 Fixed Asset 7,559 7,447 22,436 LT receivales - - - Others - - -


AP 760 760 1,932 ST borrowings 248,223 229,156 283,451 Others 31,213 3,711 14,373

Non-Current Liabilities - - - Long term debts - - - Others - - -

Owners’ Equity 79,835 83,061 156,656 Paid-in capital 66,018 68,670 83,127 Reserve 1,285 1,943 2,497 Undistributed earnings [Accumulated losses] 12,532 12,448 68,642 Others - - 2,390


Key ratios 2005 2006 2007*Growth (%YoY)Sales 34.8% 29.5% 20.7%Operating profit -115.3% N/A 869.8%EBITDA N/A N/A N/ANet profit -10.6% -3.2% 451.4%EPS N/A N/A N/AProfitability (%)Gross Margin 2.8% 3.6% 8.9%Operating Margin 0.5% 1.1% 6.3%EBITDA Margin N/A N/A N/ANet Profit Margin 1.5% 1.1% 5.0%ROA 4.2% 3.7% 17.8%ROE 16.4% 15.3% 57.3%Liquidity and SolvencyGross debt/equity (%) 351.0% 281.3% 191.3%Net debt/equity (%) 331.3% 260.2% 177.4%Int. coverage (x) 0.33 x 0.78 x 4.89 xCF int. coverage (x) -4.80 x 2.65 x -1.87 xCurrent ratio (x) 1.21 x 1.26 x 1.39 xQuick ratio (x) 0.53 x 0.65 x 0.69 xNet debt (VND'mln) 264,470 216,085 277,927 Per share data (VND)EPS basic N/A N/A 9,331 EPS fully diluted N/A N/A 9,331 CFPS N/A N/A (6,885) Book value N/A N/A 21,296 Sales per share N/A N/A 186,933 EBITDA per share N/A N/A N/ADPS (VND) 1,921 1,884 4,000 Average O/S shares N/A N/A 7,356,065



TRI – TRIBECO SAIGON BEVERAGES JOINT STOCK COMPANY

Market: HOSE

Sector: Beverage

HRS Equity Research

29th February 2008

Daily QTRI.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QTRI.HM, Last Trade(Last)2/22/2008, 36,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

32,000

36,000

40,000

44,000

48,000

52,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QTRI.HM, Last Trade2/22/2008, 13,710

VolumeVND

.1234

40,000

80,000

120,000


Source: Reuters

Stock profile/ StatisticsReuter ticker TRI.HMPrice Last (VND): 22-Feb-08 36,500 52 Wk high (VND): 5-Oct-07 58,000 52 Wk low (VND): 22-Feb-08 36,500 Market capital:(mln' dongs) 275,515 Outstanding Share 7,548,360 Free float 4,300,000 Beta 1.03 3 months average daily volume 20,258 Current room for foreign investor 452,572 Share performance (%) YTD 1M 3M 6MAbsolute (%) -22% -15% -21% -10%Index change (%) -24% -10% -31% -24%Relative (%) 2% -5% 10% 14% Key Indicators 2005 2006 2007*Net Sales 306,451 293,779 384,639 Sales growth (%) N/A -4.1% 30.9%EPS growth (%) N/A N/A 38.1%P/E (x) N/A 19.11 x 13.83 xP/CF (x) N/A -9.01 x -1.02 xEV/EBIDA (x) N/A N/A N/ADPS (VND) N/A 1,500 1,500 DY (%) N/A 4.1% 4.1%Net gearing (%) 3.3% 2.6% 0.0%Altman Z-score N/A 2.38 1.02ROE (%) 9.2% 13.9% 10.0%BV (VND) N/A 13,738 26,420 P/BV (x) N/A 2.66 x 1.38 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited


The company invested VND5.05bln (US$0.31mln) in a new packaging line which increased its production to 1,200 containers per hour.

The company plans to invest VND277.6bln (US$17.35mln) and VND80bln (US$ 5mln) in two new factories in Binh Duong and Hung Yen provinces to increase its production to 30,000,000 and 9,000,000 cases per year.

The company invested VND91.35bln (US$5.71mln) in the Phu Vinh 20 storey high-class apartment building project in Dist. 3, HCMC.

Business summary

Tribeco Saigon Beverages JSC was established in 1992 and its shares were listed on HOSE two years later.

Headquartered in Ho Chi Minh City, the company has two factories manufacturing beverages, soya milk, and fruit drinks. The company holds 25% market share of soya milk. The Kinh Do Corporation’s acquisition has helped Tribeci to build a strong distribution network nationwide. Its products are exported to India, Taiwan, Netherlands and the United States.

In 2007, the company reported net income of VND15.23bln (US$0.95mln), up 75.3% compared to 2006.


Major holders are Kinh Do Corporation (35.4%), Uni-President VN Co., LTD. (29.14%), Citigroup Global Market LTD (CGML) & Citigroup Global Market Financial Products LTD (CGMFP) (8.65%).

Foreigners43%

Others57%

ManagementName Title Background Start date % of SharesMr Hoang Minh Son Chairman Bachelor 1999 2.52%Mr. Phan Minh Co CEO Bachelor 2001 0.81%Ms. Hang Thi Dieu Chief Accountant Bachelor 2000Mr. Truong Thanh Viet Chief of Compliance





Collections from AR 320,568 297,160 369,847 Payment for AP (245,384) (231,029) (464,897) Payment for employees salaries (32,331) (31,332) (41,048) Payment for interest expense (1,194) (4,364) (22,502) Payment for enterprise tax (18,003) (11,630) (22,110) Other cash inflows from operating activities 6,064 5,829 19,731 Other cash outflows from operating activities (56,587) (43,055) (46,588)

Net cash flows from (used in) operating activities (26,867) (18,422) (207,566) Net cash flows from (used in) investing activities (1,941) (44,658) (122,715) Net cash flows from (used in) financing activities 22,728 61,354 384,887 Net increase (decrease) in cash and cash equivalents (6,081) (1,725) 54,606





Net Investment income (loss) (510) (4,190) (1,102) Net other non-op. JV+Assoc. - - - Net exceptionals 1,173 107 4,809 Profit (loss) before tax 7,758 12,013 21,128 Income taxes (2,051) (3,325) (5,898) Minority Interest - - - Net profit (loss) after tax 5,708 8,688 15,230 EBITDA N/A N/A N/AEPS basic (VND) N/A 1,910 2,638 EPS fully diluted (VND) N/A 1,910 2,638



Non-Current Assets 31,785 62,522 326,732 Investment properties - - - LT invesments 10,250 38,050 - Fixed Asset 21,354 24,472 276,910 LT receivales - - - Others 181 - 49,822



Non-Current Liabilities 3,386 2,340 197,097 Long term debts 2,015 1,609 - Others 1,371 731 197,097

Owners’ Equity 61,862 62,487 152,511 Paid-in capital 45,484 45,484 75,484 Reserve 4,521 5,421 6,782 Undistributed earnings 10,977 10,702 15,845 Others 881 881 54,400


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -4.1% 30.9%Operating profit N/A 80.8% 37.1%EBITDA N/A N/A N/ANet profit N/A 52.2% 75.3%EPS N/A N/A 38.1%Profitability (%)Gross Margin 25.8% 31.8% 29.6%Operating Margin 2.3% 5.5% 4.5%EBITDA Margin N/A N/A N/ANet Profit Margin 1.9% 3.0% 4.0%ROA 7.6% 4.8% 3.5%ROE 18.5% 14.0% 14.2%Liquidity and SolvencyGross debt/equity (%) 143.6% 238.2% 326.9%Net debt/equity (%) 128.5% 226.1% 283.5%Int. coverage (x) 5.94 x 5.94 x N/ACF int. coverage (x) -21.49 x -3.22 x -8.22 xCurrent ratio (x) 1.39 x 1.02 x 1.14 xQuick ratio (x) 1.03 x 0.80 x 0.89 xNet debt (VND'mln) 79,512 141,258 432,437Per share data (VND)EPS basic N/A 1,910 2,638EPS fully diluted N/A 1,910 2,638CFPS N/A -4,050 -35,957Book value N/A 13,738 26,420Sales per share N/A 64,590 66,632EBITDA per share N/A N/A N/ADPS N/A 1,500 1,500 Average O/S shares N/A 4,548,360 5,772,588



SCD – CHUONG DUONG BEVERAGES COMPANY Market: HOSE

Sector: Beverage

HRS Equity Research

29th February 2008

Daily QSCD.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSCD.HM, Last Trade(Last)2/22/2008, 26,800Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

30,000

40,000

50,000

60,000

70,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QSCD.HM, Last Trade2/22/2008, 29,110

VolumeVND

.1234

30,000

60,000

90,000


Source: Reuters

Stock profile/ StatisticsReuter ticker SCD.HMPrice Last (VND): 22-Feb-08 26,800 52 Wk high (VND): 14-Mar-07 84,500 52 Wk low (VND): 22-Feb-08 26,800 Market capital:(mln' dongs) 227,800 Outstanding Share 8,500,000 Free float 4,100,000 Beta 0.77 3 months average daily volume 20,740 Current room for foreign investor 3,460,740 Share performance (%) YTD 1M 3M 6MAbsolute (%) -33% -11% -36% -32%Index change (%) -24% -10% -31% -24%Relative (%) -9% -1% -5% -8% Key Indicators 2005 2006 2007*Net Sales 148,021 194,485 238,894 Sales growth (%) N/A 31.4% 22.8%EPS growth (%) N/A -0.1% 17.3%P/E (x) 12.15 x 12.16 x 10.36 xP/CF (x) 12.15 x 4.75 x 10.95 xEV/EBIDA (x) N/A N/A N/ADPS (VND) - 1,200 - DY (%) - 4.5% - Net gearing (%) 1.2% 1.1% 1.0%Altman Z-score 6.54 5.76 6.81ROE (%) 18.9% 16.8% 18.1%BV (VND) 11,663 13,128 14,263 P/BV (x) 2.30 x 2.04 x 1.88 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

Since 2007, the company has made some head way into the real estate market, constructing some high-end apartment buildings in Tan Phu District, District 6 and Thu Duc District (total investment of VND128bln or US$8mln).

The company intends to construct a new factory with designed capacity of 100mln liters per year, total investment is VND366bln (US$22.8mln).

Business summary

Officially listed its shares on HOSE since December 2006, Chuong Duong Beverages company (SCD) is a subsidiary of Saigon Beer-Alcohol-Beverage Corporation.

The company is mainly involved in manufacturing non-alcoholic beverage and offering bottling and packaging services for the other beverages companies. SCD’s capacity has grown from 22.9mln liters per year in 1992 to 38mln liters per year in 2006. Saxi (root beer) is Chuong Duong biggest product, accounting for approximately 74% of product.

Total revenue for 2007 increased 22.4% to VND240bln (US$15mln).

Ownership and major Shareholders

Major holders of SCD stocks are Sabeco (51%) and Vietnam Dragon Fund Ltd (7.9%).

State51%

others41%

foreigners8%

ManagementName Title Background Start date % of SharesHoang Chi Thanh Chairman/C.E.O. BBA 2004 0.00%Thai Thi Anh Hong Chief of Accountant Bachelor degree 2005 0.00%Duong Chi Hung Chief of compliance Bachelor degree 1998 0.00% Source: Company data




Collections from AR N/A 182,537 229,635 Payment for AP N/A (78,467) (144,684) Payment for employees salaries N/A (26,707) (24,835) Payment for interest expense N/A - - Payment for enterprise tax N/A (1,500) (3,852) Other cash inflows from operating activities N/A 20,688 8,403 Other cash outflows from operating activitie N/A (48,629) (43,879)

Net cash flows from (used in) operating activities N/A 47,923 20,788 Net cash flows from (used in) investing activities N/A (46,133) (3,737) Net cash flows from (used in) financing activities N/A (7,591) (15,358) Net increase (decrease) in cash and cash equivalents N/A (5,801) 1,693



Operating expenses (33,135) (52,946) (69,274) EBIT 17,932 18,625 20,238 Net Interest - - -

Interest income - - - Interest expense - - -

Net Investment income (loss) 757 2,567 3,614 Net other non-op. JV+Assoc. - - - Net exceptionals 62 620 1,982 Profit (loss) before tax 18,751 21,812 25,835 Income taxes - (3,079) (3,873) Minority Interest - - - Net profit (loss) after tax 18,751 18,733 21,961 EBITDA N/A N/A N/AEPS basic (VND) 2,206 2,204 2,586 EPS fully diluted (VND) 2,206 2,204 2,586 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 130,493 151,671 154,277 Current Assets 96,022 107,341 105,561

Cash & ST investment 28,891 64,803 72,079 Stock & debtors 65,297 41,902 32,603 Others 1,834 636 879

Non-Current Assets 34,471 44,330 48,715 Investment properties - - - LT invesments - 6,750 8,750 Fixed Asset 23,866 17,239 27,093 LT receivales 1,196 1,129 187 Others 9,409 19,211 12,686



Non-Current Liabilities 1,343 1,196 1,487 Long term debts 1,196 1,196 1,195 Others 147 - 292

Owners’ Equity 99,135 111,587 121,137 Paid-in capital 85,000 85,000 85,000 Reserve 14,205 12,174 19,976 Undistributed earnings - 14,483 16,231 Others (70) (70) (70)


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 31.4% 22.8%Operating profit N/A 13.4% 12.6%EBITDA N/A N/A N/ANet profit N/A -0.1% 17.2%EPS N/A -0.1% 17.3%Profitability (%)Gross Margin 34.5% 36.8% 37.5%Operating Margin 12.1% 9.6% 8.5%EBITDA Margin N/A N/A N/ANet Profit Margin 12.7% 9.6% 9.2%ROA 28.7% 13.3% 14.4%ROE 37.8% 17.8% 18.9%StabilityGross debt/equity (%) 31.6% 35.9% 27.4%Net debt/equity (%) 2.5% 15.2% 6.9%Int. coverage (x) N/A N/A N/ACF int. coverage (x) N/A N/A N/ACurrent ratio (x) 3.20 x 2.76 x 3.34 xQuick ratio (x) 1.94 x 2.25 x 2.79 xNet debt (VND'mln) 2,467 16,993 8,356 Per share data (VND)EPS basic 2,206 2,204 2,586 EPS fully diluted 2,206 2,204 2,586 CFPS 2,206 5,638 2,448 Book value 11,663 13,128 14,263 Sales per share 17,414 22,881 28,128 EBITDA per share N/A N/A N/ADPS (VND) - 1,200 - Average O/S shares 8,500,000 8,500,000 8,493,050



VTL – THANGLONG JOINT-STOCK COMPANY Market: HASTC

Sector: Beverage

HRS Equity Research

29th February 2008

Daily QVTL.HN, Q.HASTCI 1/2/2007 - 2/22/2008 (BKK)

Line, QVTL.HN, Last Trade(Last)2/22/2008, 41,000Line, Q.HASTCI, Last Trade(Last)2/22/2008, 239.02

PriceVND

020,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

PriceVND

.12

240

270

300

330

360

390

420

450

Vol, QVTL.HN, Last Trade2/22/2008, 1,000

VolumeVND

.1234

30,000

60,000

90,000


Source: Reuter

Stock profile/ StatisticsReuter ticker VTL.HNPrice Last (VND): 22-Feb-08 41,000 52 Wk high (VND): 13-Mar-07 68,400 52 Wk low (VND): 16-Jul-07 27,900 Market capital:(mln' dongs) 73,800 Outstanding Share 1,800,000 Free float 1,000,000 Beta 1.02 3 months average daily volume 11,758 Current room for foreign investor 760,100 Share performance (%) YTD 1M 3M 6MAbsolute (%) -11% -7% -11% 24%Index change (%) -24% -12% -30% -5%Relative (%) 13% 5% 19% 29% Key Indicators 2005 2006 2007*Net Sales 72,116 63,390 75,164 Sales growth (%) N/A -12.1% 18.6%EPS growth (%) N/A -16.4% 21.6%P/E (x) 11.90 x 14.23 x 11.70 xP/CF (x) 2.06 x 2.94 x 10.07 xEV/EBIDA (x) N/A N/A N/ADPS (VND) - 1,400 - DY (%) 0.0% 3.4% 0.0%Net gearing (%) 58.3% 56.4% 38.6%Altman Z-score 2.77 1.81 3.03ROE (%) 23.7% 21.4% 20.1%BV (VND) 14,521 13,491 17,396 P/BV (x) 2.82 x 3.04 x 2.36 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

VTL is going to start stage two of the high-quality Grape Winery Factory in Ninh Thuan in April 2008. The investment for this stage is VND27.3bln (USD1.7mln) and the construction will be completed in January 2010.

VTL is investing in the 181 Lac Long Quan buildings in Hanoi with initial investment of VND52bln (USD3.25mln). The project includes an 11 floors commercial center and office building, starting in the first quarter of 2008.

VTL started the construction of a building in 45 Lac Long Quan Street, Hanoi in late 2007 with an investment of VND15bln (US$0.94mln). Once completed, the 7 floors building will be used as a showroom and retailing store.

Business summary

Thang Long JSC (VTL) primarily manufactures, distills and markets alcoholic and non-alcoholic drinks. It also engages in hotel management and food-related activities. Its main products are wine derived from grapes, pineapples and other fruits, sparkling wine, and rice-originated vodka.

Headquartered in Hanoi, the Company has three stores and two branches in Ninh Thuan Province and Ho Chi Minh City. VTL has been listed on Ha Noi Stock Trading Center since July 2005.

In 2007, VTL reported VND75bln (US$4.7mln) sales, up 11.6% from the previous year’s sales. The net profit increased 21.2% to VND6.3bln (US$0.4mln).


Major holders of VTL stocks are the State (40%).

Foreigners6%

Others54%

State40%

ManagementName Title Background Start date Shares % of SharesMr. Vu Thanh Son Chairman Bachelor of busines 1986 - 0%Ms. Mai Khue Anh CEO Bachelor of busines 1983 4,190 0.23%Mr. Nguyen Huu Nga CFO Bachelor of busines 1997 56,240 3.12%Ms. To Thanh Huyen Chief of Compliance Bachelor of busines 2004 - 0% Source: Company data




Collections from AR 87,413 65,555 N/APayment for AP (23,790) (19,217) N/APayment for employees salaries (4,785) (5,674) N/APayment for interest expense (3,250) (3,173) N/APayment for enterprise tax (17,514) (10,205) N/AOther cash inflows from operating activities 1,663 807 N/AOther cash outflows from operating activities (3,831) (2,976) N/A

Net cash flows from (used in) operating activities 35,906 25,117 N/ANet cash flows from (used in) investing activities (9,917) 10,240 N/ANet cash flows from (used in) financing activities (32,193) (25,881) N/ANet increase (decrease) in cash and cash equivalents (6,204) 9,476 N/A





Net Investment income (loss) (3,145) (3,846) (3,428) Net other non-op. JV+Assoc. - - - Net exceptionals 62 (49) (23) Profit (loss) before tax 8,613 7,204 7,331 Income taxes (2,412) (2,017) (1,026) Minority Interest - - - Net profit (loss) after tax 6,201 5,187 6,305 EBITDA N/A N/A N/AEPS basic (VND) 3,445 2,882 3,503 EPS fully diluted (VND) 3,445 2,882 3,503 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 71,971 94,402 69,989 Current Assets 40,868 62,267 39,709

Cash & ST investment 17,420 16,896 7,792 Stock & debtors 22,824 45,062 31,217 Others 624 309 700

Non-Current Assets 31,103 32,135 30,280 Investment properties - - - LT invesments - - 3,086 Fixed Asset 29,353 27,856 25,933 LT receivales 1,477 3,942 1,050 Others 273 337 211



Non-Current Liabilities 15,428 14,982 24,150 Long term debts 15,247 13,698 12,075 Others 181 1,284 12,075

Owners’ Equity 26,138 24,283 31,312 Paid-in capital 18,000 18,000 18,000 Reserve 3,051 4,012 8,920 Undistributed earnings 5,099 2,283 4,404 Others (12) (12) (12)


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -12.1% 18.6%Operating profit N/A -15.2% 1.4%EBITDA N/A N/A N/ANet profit N/A -16.4% 21.6%EPS N/A -16.4% 21.6%Profitability (%)Gross Margin 24.7% 22.5% 21.6%Operating Margin 16.2% 17.5% 14.3%EBITDA Margin N/A N/A N/ANet Profit Margin 8.6% 8.2% 8.4%ROA 17.2% 6.2% 7.7%ROE 47.4% 20.6% 22.7%Liquidity and SolvencyGross debt/equity (%) 175.4% 288.8% 123.5%Net debt/equity (%) 147.0% 219.2% 98.6%Int. coverage (x) 3.53 x 2.55 x N/ACF int. coverage (x) 12.05 x 8.92 x N/ACurrent ratio (x) 1.34 x 1.13 x 1.49 xQuick ratio (x) 0.60 x 0.63 x 0.44 xNet debt (VND'mln) 38,413 53,223 30,885 Per share data (VND)EPS basic 3,445 2,882 3,503 EPS fully diluted 3,445 2,882 3,503 CFPS 19,948 13,954 4,073 Book value 14,521 13,491 17,396 Sales per share 40,064 35,217 41,758 EBITDA per share N/A N/A N/ADPS - 1,400 - O/S shares 1,800,000 1,800,000 1,800,000



VNM – VIETNAM DAIRY PRODUCTS JOINT STOCK COMPANY

Market: HOSE

Sector: Dairy

HRS Equity Research

29th February 2008

Daily QVNM.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QVNM.HM, Last Trade(Last)2/22/2008, 114,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000200,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QVNM.HM, Last Trade2/22/2008, 355,990

VolumeVND

.1234

300,000

600,000

900,000

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan FebQ1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Source: Reuters

Stock profile/ StatisticsReuter ticker VNM.HMPrice Last (VND): 22-Feb-08 114,000 52 Wk high (VND): 27-Feb-07 212,000 52 Wk low (VND): 22-Feb-08 114,000 Market capital:(mln' dongs) 19,981,426 Outstanding Share 175,275,670 Free float 85,900,000 Beta 1.05 3 months average daily volume 112,180 Current room for foreign investor 3,674,688 Share performance (%) YTD 1M 3M 6MAbsolute (%) -31% -12% -34% -30%Index change (%) -24% -10% -31% -24%Relative (%) -7% -2% -3% -6% Key Indicators 2005 2006 2007*Net Sales 5,638,784 6,619,102 6,821,864 Sales growth (%) N/A 17.4% 3.1%EPS growth (%) N/A 20.8% 20.5%P/E (x) 29.94 x 24.78 x 20.56 xP/CF (x) 31.60 x 36.29 x N/AEV/EBIDA (x) 32.02 x 27.10 x N/ADPS (VND) - 1,900 1,900 DY (%) 0.0% 1.7% 1.7%Net gearing (%) 0.5% 1.6% 0.0%Altman Z-score 8.84 15.33 13.90ROE (%) 26.9% 26.8% 22.4%BV (VND) 14,132 17,200 24,740 P/BV (x) 8.07 x 6.63 x 4.61 x

Source:Reuters, Company data, Horizon Securities; (*) Unaudited

employee0%

others9%

foreigners44%

Business summary

Established in 1976, VINAMILK is the largest producer of milk and diary products in Vietnam with a distribution network of 183 distributors and 90,000 retailers across the country. The Company also has 37 foreign distributors in North America, the EU and Asia. Key export markets remain the US, Canada, Poland, Germany, France and Middle East with total foreign revenue of VND 600bln (US$50mln).

The Company mainly produces milk, beverages and nutrition products. Additionally, VINAMILK provides supporting services, such as logistics, packaging and warehousing rental. More than 80% of total revenue is generated from sales of milk products. In 2007, VINAMILK generated VND6810bln (US$426mln) in sales and their net profit VND967bln (US$60.5mln). VINAMILK has reached one of the largest market capitalizations on the HOSE.


The State is VINAMILK’s largest shareholder with a 47% of stake. Fresers & Neave of Singapore, the second largest shareholder, acquired an 11% stake by way of government auctions, the remaining 39% is held by domestic and foreign investors. The Board comprises of five members including Ms Mai Kieu Lien as the Chairperson. ManagementName Title Background Start date % of SharesMai Kieu Lien Chairman/CEO Bachelor Aug-76 1.305%Nguyen Thi Thanh Hoa Vice Director Bachelor Jul-83 0.005%Ngo Thi Thu Trang Vice Director/CFO MBA 1985 0.004%Nguyen Viet Cuong Compliance Bachelor 2004 0.019% Source: Company data



VINAMILK purchased 55% shares of Lam Son Milk Corporation which has a chartered capital of VND50bln (UD$3.4mln). On March 2007, VINAMILK decided to set up a joint venture with SABMiller to enter the beer beginning of 2008. Beside that, VINAMILK set up a dairy farm in Tuyen Quang province with a total investment of VND55bln (US$3.44mln) on an area of 60ha. VINAMILK plans to issue over 8.85 million shares, representing a 5% stake in the company, on the Singapore stock exchange.



Financial Data

Cashflow (VND'mln) 2005 2006 2007*Operating CF 573,655 499,471 959,075

Profit (loss) before tax 602,600 734,469 959,075 Depreciation & amortisation 77,636 101,225 N/AChange in working capital (87,191) (281,548) N/AOthers (19,390) (54,675) N/A

Investment CF (386,589) (589,403) N/AFinancing CF (201,258) (253,420) N/ANet increase (decrease) in cash and cash equivalents (14,192) (343,352) N/A


COGS (4,379,796) (5,012,632) (4,955,678) Gross profit 1,258,988 1,606,470 1,866,186

Operating expenses (734,540) (1,012,284) (1,194,223) EBIT 524,448 594,186 671,963 Net Interest (10,030) (21,192) -


Net Investment income (loss) 35,385 34,251 188,193 Net other non-op. JV+Assoc. - - - Net exceptionals 42,767 106,032 98,919 Profit (loss) before tax 602,600 734,469 959,075 Income taxes 2,884 (2,884) 8,017 Minority Interest - - - Net profit (loss) after tax 605,484 731,585 967,092 EBITDA 602,084 695,411 N/AEPS basic (VND) 3,808 4,601 5,544 EPS fully dilutied (VND) 3,808 4,601 5,544 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 3,897,936 3,609,403 5,344,725 Current Assets 2,406,477 1,996,391 3,019,314

Cash & ST investment 523,112 463,625 414,497 Stock & debtors 1,787,667 1,477,449 2,529,670 Others 95,698 55,317 75,147

Non-Current Assets 1,491,459 1,613,012 2,325,411 Investment properties - - - LT invesments 609,960 422,771 601,673 Fixed Asset 757,373 1,071,980 1,518,898 LT receivales 4,018 860 762 Others 120,108 117,401 204,078

Total liabilities 1,651,018 874,665 1,028,786 Current Liabilities 1,579,433 785,525 888,277

AP 260,885 436,869 - ST borrowings 12,263 17,883 888,277 Others 1,306,285 330,773 -

Non-Current Liabilities 71,585 89,140 140,509 Long term debts 10,410 45,045 - Others 61,175 44,095 140,509

Owners’ Equity 2,246,918 2,734,738 4,315,939 Paid-in capital 1,590,000 1,590,000 1,752,757 Reserve 262,227 748,282 946,718 Undistributed earnings 340,474 342,239 551,516 Others 54,217 54,217 1,064,948


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 17.4% 3.1%Operating profit N/A 12.3% 36.9%EBITDA N/A 15.5% N/ANet profit N/A 20.8% 32.2%EPS N/A 20.8% 20.5%Profitability (%)Gross Margin 22.3% 24.3% 27.4%Operating Margin 9.3% 9.0% 9.9%EBITDA Margin 10.7% 10.5% N/ANet Profit Margin 10.7% 11.1% 14.2%ROA 31.1% 19.5% 21.6%ROE 53.9% 29.4% 27.4%Liquidity and SolvencyGross debt/equity (%) 73.5% 32.0% 23.8%Net debt/equity (%) 51.2% 26.2% 21.2%Int. coverage (x) 52.29 x 28.04 x N/ACF int. coverage (x) 58.19 x 24.57 x N/ACurrent ratio (x) 1.52 x 2.54 x 3.40 xQuick ratio (x) 0.78 x 1.24 x 1.46 xNet debt (VND'mln) 1,150,706 717,770 915,259 Per share data (VND)EPS basic 3,808 4,601 5,544 EPS fully dilutied 3,808 4,601 5,544 CFPS 3,608 3,141 - Book value 14,132 17,200 24,740 Sales per share 35,464 41,630 39,104 EBITDA per share 3,787 4,374 N/ADPS (VND) - 1,900 1,900 Average O/S shares N/A 159,000,000 174,452,916



HNM - HANOIMILK JOINT STOCK COMPANY

Market: HASTC

Sector: Dairy

HRS Equity Research

29th February 2008

Daily QHNM.HN, Q.HASTCI 1/2/2007 - 2/22/2008 (BKK)

Line, QHNM.HN, Last Trade(Last)2/22/2008, 24,600Line, Q.HASTCI, Last Trade(Last)2/22/2008, 239.02

PriceVND

0

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55,000

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390

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Vol, QHNM.HN, Last Trade2/22/2008, 51,900

VolumeVND

.1234

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Source: Reuters

Stock profile/ StatisticsReuter ticker HNM.HNPrice Last (VND): 22-Feb-08 24,600 52 Wk high (VND): 14-Mar-07 64,122 52 Wk low (VND): 21-Feb-08 24,500 Market capital:(mln' dongs) 173,418 Outstanding Share 7,049,500 Free float 9,900,000 Beta 1.13 3 months average daily volume 47,053 Current room for foreign investor 2,892,955 Share performance (%) YTD 1M 3M 6MAbsolute (%) -27% -11% -35% -20%Index change (%) -24% -12% -30% -5%Relative (%) -3% 1% -5% -15% Key Indicators 2005 2006 2007*Net Sales 288,076 327,972 323,829 Sales growth (%) N/A 13.8% -1.3%EPS growth (%) N/A -63.9% 66.5%P/E (x) 8.63 x 23.89 x 14.35 xP/CF (x) -1.96 x 5.69 x 13.11 xEV/EBIDA (x) 9.74 x 8.66 x N/ADPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) 45.9% 18.0% 0.0%Altman Z-score 2.50 3.16 2.69 ROE (%) 38.3% 6.1% 6.9%BV (VND) 7,450 16,779 24,813 P/BV (x) 3.30 x 1.47 x 0.99 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Hanoimilk Joint Stock Company was established in 2001 with charter capital of VND70bln (US$4.37mln). The Company mainly manufactures dairy products with a distribution network of 80 wholesalers across the country and a market share of 8%. Hanoimilk‘s products include fresh milk, drinking yoghurt and yoghurt. Additionally, Hanoimilk also deals in husbandry and farming. In December 2006, the Company listed its shares on HASE .With new modern technology and equipments, Hanoimilk doubled its total capacity from 30mln liter in 2005 to 60mln liter in 2006. Revenue in 2007 was VND324 bln (US$20.25mln).


In 2007, MAEIL – a Korean nutritious food corporation became the largest shareholder of Hanoimilk with a 10% stake. The second largest is Lion Capital Management with 5.64%.

foreigners31%

others50%

employee19%


ManagementName Title Background Start date % of SharesMr. Tran Dang Tuan Chairman/CEO Bachelor 2001 2.70%Mrs. Nguyen Thi Thu Huyen Board member/ F&A director Bachelor 2004 0.06%Mrs. Nguyen Thi Len Compliance Bachelor 0.14%



In August 2007, HNM signed a contract to become a member of HAPRO to expand its distribution channels through convenience stores. In addition, HNM signed a strategic partnership with MAEIL – The third largest nutritious food manufacturer in Korea, specializing in children food.



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF (88,510) 30,482 13,224 Profit (loss) before tax 20,105 7,260 13,224 Depreciation & amortisatio 6,727 11,266 N/AChange in working capital (116,799) 14,582 - Others 1,457 (2,626) - Investment CF (7,847) (46,137) - Financing CF 89,320 16,442 - Net increase (decrease) in cash and cash

(7,037) 787 13,224





Net Investment income (loss) (6,203) (11,622) (8,025) Net other non-op. JV+Assoc. - - - Net exceptionals (103) 733 1,018 Profit (loss) before tax 20,105 7,260 13,224 Income taxes - - (1,139) Minority Interest - - - Net profit (loss) after tax 20,105 7,260 12,085 EBITDA 33,138 29,415 N/AEPS basic (VND) 2,852 1,030 1,714 EPS fully dilutied (VND) 2,852 1,030 1,714 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 207,546 206,205 273,541 Current Assets 117,498 78,863 134,720


Non-Current Assets 90,048 127,342 138,821 Investment properties - - - LT invesments - - 17,390 Fixed Asset 90,048 127,342 120,829 LT receivales - - - Others - - 602



Non-Current Liabilities 24,132 21,253 8,235 Long term debts 24,132 21,253 - Others - - 8,235

Owners’ Equity 52,521 118,281 174,916 Paid-in capital 35,495 70,495 100,000 Reserve 243 7,385 5,768 Undistributed earnings 16,783 5,401 5,369 Others - 35,000 63,779


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 13.8% -1.3%Operating profit N/A -67.7% 87.0%EBITDA N/A -11.2% N/ANet profit N/A -63.9% 66.5%EPS N/A -63.9% 66.5%Profitability (%)Gross Margin 24.8% 24.3% 24.3%Operating Margin 9.2% 5.5% 6.2%EBITDA Margin 11.5% 9.0% N/ANet Profit Margin 7.0% 2.2% 3.7%ROA 19.4% 3.5% 5.0%ROE 76.6% 8.5% 8.2%Liquidity and SolvencyGross debt/equity (%) 295.2% 74.3% 56.4%Net debt/equity (%) 284.7% 68.7% 47.7%Int. coverage (x) 5.81 x 1.81 x N/ACF int. coverage (x) -18.48 x 4.04 x N/ACurrent ratio (x) 0.90 x 1.18 x 1.49 xQuick ratio (x) 0.19 x 0.42 x 1.02 xNet debt (VND'mln) 149,508 81,265 83,514 Per share data (VND)EPS basic 2,852 1,030 1,714 EPS fully dilutied 2,852 1,030 1,714 CFPS (12,556) 4,324 1,876 Book value 7,450 16,779 24,813 Sales per share 40,865 46,524 45,936 EBITDA per share 4,701 4,173 N/ADPS (VND) N/A N/A N/AO/S shares 7,049,500 7,049,500 7,049,500



KDC – KINHDO CORPORATION Market: HOSE

Sector: Confectionery

HRS Equity Research

29th February 2008

Daily QKDC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QKDC.HM, Last Trade(Last)2/22/2008, 143,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

120,000

140,000

160,000

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260,000

PriceVND

.12

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800

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1,000

1,050

1,100

1,150

Vol, QKDC.HM, Last Trade2/22/2008, 31,100

VolumeVND

.1234

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300,000


Source: Reuters

Stock profile/ StatisticsReuter ticker KDC.HMPrice Last (VND): 22-Feb-08 143,000 52 Wk high (VND): 10-Aug-07 277,000 52 Wk low (VND): 22-Feb-08 143,000 Market capital:(mln' dongs) 6,720,952 Outstanding Share 46,999,665 Free float 46,500,000 Beta 1.05 3 months average daily volume 57,294 Current room for foreign investor 5,520,836 Share performance (%) YTD 1M 3M 6MAbsolute (%) -25% -7% -29% -42%Index change (%) -24% -10% -31% -24%Relative (%) 0% 4% 2% -18% Key Indicators 2005 2006 2007*Net Sales 798,617 998,149 1,233,119 Sales growth (%) N/A 25.0% 23.5%EPS growth (%) N/A 80.1% 41.0%P/E (x) 45.27 x 25.14 x 17.82 xP/CF (x) 11.05 x 44.07 x -32.77 xEV/EBIDA (x) 31.88 x 27.58 x 26.59 xDPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) 11.5% 6.0% 4.6%Altman Z-score 10.69 9.24 5.55ROE (%) 19.2% 29.2% 9.8%BV (VND) 16,450 19,511 68,261 P/BV (x) 8.69 x 7.33 x 2.09 x

Source:Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Founded in 2002, Kinh Do Corporation is the largest producer of snacks and confectionary products in Vietnam with 200 distributors and 65,000 retailers. Through its subsidiary, the Company manufactures confectionary products. Revenue in 2007 was VND1233bln (US$77.06 mln), growing at nearly 15% annually. Its current market share is more than 30%. After Kinh Do listed in HOSC on the end of 2005, Kinh Do increased its revenue and profit by 17% .Its planned revenue for 2008 is VND1,380bln (US$86.25mln). Kinh Do exported products to the USA, the EU, Singapore, and China. Total export revenue is about VND160bln (US$10mln).

Ownership & major shareholder

The Kinh Do Construction And Food Processing Corporation is Kinh Do‘s largest shareholder with a 13.89% stake. Mr. Tran Kim Thanh is the second largest shareholder with a 10.28% stake. Total foreign ownership is 28%.

emloyee40%

foreigners38%

others22%

ManagementName Title Background Start date % of SharesTran Kim Thanh Chairman/CEO Bachelor 1993 10.28%Chin Wei Minh (Ralph King) Board member/ CFO Bachelor 2003 0.00%Ma Thanh Danh Compliance Bachelor 0.00%


Project and investment

At the end of 2007, KDC started to operate a new 13 ha manufacturing plant in Binh Duong province. Kinh Do moved its factory to Binh Duong. The new 13ha production was put into operation at the end of December 2007. KDC plans to use its old factory’ land to build Hiep Binh Phuoc apartment.

KDC recently became a strategic partner of the Vietnam Export-Import Bank (Vietnam Eximbank) by acquiring by 6.42% for US$90mln

Kinh Do Corporation is the largest shareholder of Saigon Beverage Joint Stock Company (Tribeco) a Vietnamese beverage company with annual revenue of VND398bln (US$24.9mln).

Kinh Do has purchased 30% of share of Nutifood, a milk processing company with annual revenue growth of 30% annually. This purchase will help Kinh Do expand in the milk and nutritious food sector.

Interested in investing into real estate, management has plan to build an apartment building with a total capital of VND1,017 bln (US$63 mln) for 70%. This investment has NPV of VND508bln (US$32mln) and IRR of 142%.

Moreover, it also plans to construct the Kinh Do plaza



on Le Loi Street with the total investment of VND2656bln (US$166mln). Kinh Do has already contributed 70% of the total investment. This investment has NPV of VND1,648 bln (US$100mln) and IRR of 18%. Kinh Do has signed partnership contract to build the Cong Hoa complex in Ho Chi Minh City with total investment of VND300bln (US$18.75mln).

Financial Data

Cashflow (VND'mln) 2005 2006 2007*Operating CF 388,355 97,345 (130,925)

Profit (loss) before tax 107,612 170,031 240,703 Depreciation & amortisation 31,098 34,519 39,264 Change in working capital 94,282 (96,687) (385,065) Others 155,363 (10,518) (25,827)

Investment CF (163,508) (72,477) (1,203,199) Financing CF (196,173) (18,766) 1,813,736 Net increase (decrease) in cash and cash equivalents 28,674 6,102 479,612

Income Statement (VND'mln) 2005 2006 2007*Net Sales 798,617 998,149 1,233,119




Net Investment income (loss) (13,773) 23,617 58,592 Net other non-op. JV+Assoc. - - - Net exceptionals 10,166 14,533 25,647 Profit (loss) before tax 107,612 170,031 240,703 Income taxes (12,856) 635 - Minority Interest - - - Net profit (loss) after tax 94,756 170,666 240,703 EBITDA 142,317 166,400 195,728 EPS basic (VND) 3,159 5,689 8,024 EPS fully dilutied (VND) 3,159 5,689 8,024 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 784,682 936,372 3,064,259 Current Assets 360,026 460,247 1,757,212

Cash & ST investment 74,532 142,935 1,057,888 Stock & debtors 281,933 316,982 697,762 Others 3,561 330 1,562

Non-Current Assets 424,656 476,125 1,307,047 Investment properties - - - LT invesments 131,350 178,777 803,872 Fixed Asset 268,202 258,219 478,265 LT receivales 25,104 37,063 22,844 Others - 2,066 2,066



Non-Current Liabilities 57,183 47,298 125,713 Long term debts 56,841 34,873 112,410 Others 342 12,425 13,303

Owners’ Equity 493,454 586,185 2,457,284 Paid-in capital 250,000 300,000 469,997 Reserve 16,911 39,349 69,620 Undistributed earnings 102,698 123,085 189,902 Others 123,845 123,751 1,727,765


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 25.0% 23.5%Operating profit N/A 59.6% 38.3%EBITDA N/A 16.9% 17.6%Net profit N/A 80.1% 41.0%EPS N/A 80.1% 41.0%Profitability (%)Gross Margin 28.8% 28.2% 26.1%Operating Margin 13.9% 13.2% 12.7%EBITDA Margin 17.8% 16.7% 15.9%Net Profit Margin 11.9% 17.1% 19.5%ROA 24.2% 19.8% 12.0%ROE 38.4% 31.6% 15.8%Liquidity and SolvencyGross debt/equity (%) 59.0% 60.0% 23.9%Net debt/equity (%) 49.9% 51.3% 2.3%Int. coverage (x) 6.09 7.54 5.12CF int. coverage (x) 25.91 6.57 -2.87Current ratio (x) 1.54 1.52 3.81Quick ratio (x) 1.24 1.12 3.52Net debt (VND'mln) 246453 300243 56537Per share data (VND)EPS basic 3159 5689 8024EPS fully diluted 3159 5689 8024CFPS 12,945 3,245 (4,364) Book value N/A N/A N/ASales per share N/A 33272 41105EBITDA per share N/A 5547 6524DPS (VND) N/A N/A N/AO/S shares 30,000,000 29,999,252 35,998,236



NKD - NORTH KINH DO JOINT-STOCK COMPANY Market: HOSE


HRS Equity Research

29th February 2008

Daily QNKD.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QNKD.HM, Last Trade(Last)2/22/2008, 125,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0100,000

120,000

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PriceVND

.12

700

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1,000

1,050

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1,150

Vol, QNKD.HM, Last Trade2/22/2008, 15,080

VolumeVND

.1234

50,000

100,000

150,000


Source: Reuter

Stock profile/ StatisticsReuter ticker NKD.HMPrice Last (V ND): 22-Feb-08 125,000 52 W k high (V ND): 4-Sep-07 236,000 52 W k low (V ND): 25-A pr-07 122,000 Market capital:(mln' dongs) 1,259,973 O utstanding Share 10,079,782 F ree float 10,000,000 Beta 0.94 3 months average daily volume 20,173 C urrent room for foreign investor 1,216,207 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) -29% -14% -34% -47%Index change (% ) -24% -10% -31% -24%Relative (% ) -5% -4% -3% -23% Key Indicators 2005 2006 2007*Net Sales 354,789 419,429 561,580 Sales growth (% ) N/A 18.2% 33.9%EPS growth (% ) N/A 78.9% 30.3%P/E (x ) 37.11 x 20.74 x 15.92 xP/C F (x) 36.12 x 31.01 x 4.41 xEV /EBIDA (x ) 23.57 x 19.26 x 14.40 xDPS (V ND) - - - DY (% ) N/A N/A N/ANet gearing (% ) 35.9% 29.5% 24.1%A ltman Z-score 7.95 8.06 3.68 RO E (% ) 21.2% 30.3% 30.5%BV (V ND) 15,889 19,923 25,708 P/BV (x) 7.87 x 6.27 x 4.86 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

North Kinh Do Food JSC was established in 2000 Kinh Do Corporation (holding 48% shares).

The company manufactures among other things, cookies, cakes, sandwiches and snacks. Its products are mainly consumed in the Northern market.

With 5 bakeries, 46 distributor and 12000 retail outlets, NKD controls 30% of the North Vietnam confectionery market.

2007 the revenue was VND566bln (US$34.75mln), increasing 31.2%, and the profit was VND80bln (US$5mln) up 32%.


NKD will invest to set up a new cracker production line VND30bln ( US$1.88mln)

It will invest VND44bln (US$2.76mln) in a building project in Hanoi

Management also intends to invest VND173bln (10.81US$mln) in an office building project in Tan Binh District, HCMC.


The largest shareholder of North Kinh Do is South Kinh Do with 47.82% of shares, and two other foreign shareholders are Citigroup Global Market Ltd (4.66%) and Arisaig ASEAN Fund Limited (4.46%).

others63%

foreigners37%

ManagementName Title Background Start date % of SharesTran Kim Thanh Chairman&CEO Bachelor 1993 N\AVan Thi Cam Le Chief of Compliance Bachelor 2002 N/AVuong Ngoc Xiem Deputy Director N/A 1992 7.76% Source: Company data



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 34,881 40,624 285,666

Profit (loss) before tax 39,670 55,619 102,904 Depreciation & amortisation 12,398 15,188 25,784 Change in working capital (12,543) (26,670) 157,239 Others (4,644) (3,513) (261)

Investment CF (92,041) (70,894) (85,715) Financing CF 107,476 (6,044) 49,437 Net increase (decrease) in cash and cash equivalents 50,316 (36,314) 249,389

Cash and cash equivalents at beginning of year [period] 14,166 64,521 27,879





Net Investment income (loss) (4,055) (464) 34,693 Net other non-op. JV+Assoc. - - - Net exceptionals (99) 577 (1,195) Profit (loss) before tax 39,670 55,619 102,904 Income taxes (5,724) 5,126 (23,768) Minority Interest - - - Net profit (loss) after tax 33,946 60,745 79,137 EBITDA 56,222 70,694 95,190 EPS basic (VND) 3,368 6,027 7,852 EPS fully diluted (VND) 3,368 6,027 7,852


Cash & ST investment 64,521 29,942 268,785 Stock & debtors 65,046 85,688 95,114 Others 134 2,245 670

Non-Current Assets 160,220 213,076 258,735 Investment properties - - - LT invesments 4,502 3,988 46,089 Fixed Asset 153,565 208,043 211,978 LT receivales - - - Others 2,153 1,045 668



Non-Current Liabilities 58,827 61,411 62,511 Long term debts 57,524 59,205 62,511 Others 1,303 2,206 -

Owners’ Equity 160,140 200,804 259,108 Paid-in capital 70,000 84,000 100,798 Reserve 715 1,009 2,319 Undistributed earnings 33,658 60,089 100,351 Others 55,767 55,706 55,640


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 18.2% 33.9%Operating profit N/A 38.4% 89.1%EBITDA N/A 25.7% 34.7%Net profit N/A 78.9% 30.3%EPS N/A 78.9% 30.3%Profitability (%)Gross Margin 26.1% 27.0% 24.1%Operating Margin 12.4% 13.2% 12.4%EBITDA Margin 15.8% 16.9% 17.0%Net Profit Margin 9.6% 14.5% 14.1%ROA 23.4% 19.6% 16.6%ROE 42.4% 33.7% 34.4%Liquidity and solvencyGross debt/equity (%) 80.9% 64.7% 140.5%Net debt/equity (%) 40.7% 50.7% 42.7%Int. coverage (x) 9.50 x 14.24 x 6.58 xCF int. coverage (x) 8.56 x 11.42 x 28.07 xCurrent ratio (x) 1.83 x 1.72 x 1.21 xQuick ratio (x) 1.31 x 1.09 x 1.01 xNet debt (VND'mln) 65,106 101,753 110,528 Per share data (VND)EPS basic 3,368 6,027 7,852 EPS fully diluted 3,368 6,027 7,852 CFPS 3,461 4,031 28,343 Book value 15,889 19,923 25,708 Sales per share 35,202 41,615 55,719 EBITDA per share 5,578 7,014 9,445 DPS - - - Average O/S shares 10,078,762 10,078,762 10,078,762



BBC – BIBICA CORPORATION

Market: HOSE


HRS Equity Research

29th February 2008

Daily QBBC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QBBC.HM, Last Trade(Last)2/22/2008, 85,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

030,000

40,000

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70,000

80,000

90,000

PriceVND

.12

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Vol, QBBC.HM, Last Trade2/22/2008, 43,610

VolumeVND

.1234

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Source: Reuter

Stock profile/ StatisticsReuter ticker BBC .HMPrice Last (V ND): 22-Feb-08 85,000 52 W k high (V ND): 12-O ct-07 106,604 52 W k low (V ND): 23-A pr-07 42,641 Market capital:(mln' dongs) 894,898 O utstanding Share 10,528,208 F ree float 10,710,000 Beta 0.65 3 months average daily volume 20,647 C urrent room for foreign investor 3,005,563 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) -11% 10% -12% 22%Index change (% ) -24% -10% -31% -24%Relative (% ) 13% 20% 19% 46%

Business summary

Bibica is third largest confectionery producer in Vietnam. The company current capacity is 45 tons of sweets, cakes and nutritional foods and 18 tons malt per day. Having more than 100 branches throughout Vietnam, the company has captured 7% of market share. In addition, Bibica also expands to other potential markets: Japan, South Africa..

The share was listed on HOSE since 2000.

Key Indicators 2005 2006 2007*Net Sales 285,362 341,331 453,975 Sales growth (% ) N/A 19.6% 33.0%EPS growth (% ) N/A 55.7% 30.3%P/E (x) 73.92 x 47.47 x 36.43 xP/C F (x) N/A N/A N/AEV /EBIDA (x) 36.28 x 31.03 x 30.53 xDPS (V ND) - - - DY (% ) N/A N/A N/ANet gearing (% ) 3.9% 1.5% 14.8%A ltman Z-score 8.34 11.40 4.74RO E (% ) 13.4% 10.5% 12.1%BV (V ND) 8,567 17,118 19,336 P/BV (x) 9.92 x 4.97 x 4.40 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

State18%

others53% foreigners

29%



Bibica will cooperate with Lotte Corporation to distribute Lottle’s products in Vietnam. It will invest in 2 projects: Eastern Bibica Company in Binh Duong Province (second stages), Northern Bibica Company in Hung Yen Province to expand the market in the North of VietNam.

It also plans to construct HACCP (Hazard Analysis and Critical Control Points) standard sweet processing.


Bibica’s foreign largest shareholder is Lotte Corporation with expected holding share will be 30% of shares (4.6mln shares). ManagementName Title Background % of SharesTruong Chu Chien Chairman/CEO BA N/ANguyen Bang Tam Vice Chairman N/A 0.76%Phan Van Thien Deputy Director Engineer, BA 0.62%Nguyen Quang Hien Chief Acountant BA N/AVo Ngoc Thanh Member of BM BA 4.36% Source: Company data



inancial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 17,360 1,011 24,224

Pofit (loss) before tax 16,091 25,332 34,034 Depreciation & amortisation 8,331 11,517 11,019 Change in working capital (6,736) (36,661) (20,829) Others (327) 823 -

Investment CF (13,035) (41,330) (46,040) Financing CF (695) 51,730 43,670 Net increase (decrease) in cash and cash equivalents 3,630 11,410 21,854



Operating expenses (50,213) (67,400) (95,315) EBIT 18,854 19,022 22,998 Net Interest (3,095) (2,478) (3,297) Interest income - - - Interest expense (3,095) (2,478) (3,297) Net Investment income (loss) (2,933) 5,688 10,472 Net other non-op. JV+Assoc. - - - Net exceptionals 170 622 564 Profit (loss) before tax 16,091 25,332 34,034 Income taxes (3,773) (6,149) (9,039) Minority Interest - - - Net profit (loss) after tax 12,318 19,183 24,995 EBITDA 27,185 30,539 34,018 EPS basic (VND) 1,989 2,593 2,541 EPS fully dilutied (VND) - - - Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 178,652 242,977 379,702 Current Assets 100,830 156,307 179,079


Non-Current Assets 77,821 86,670 200,623 Investment properties - - - LT invesments 3,720 9,753 39,208 Fixed Asset 65,832 64,627 149,256 LT receivales - - - Others 8,269 12,290 12,159



Non-Current Liabilities 3,600 3,179 31,570 Long term debts 3,600 2,808 30,713 Others - 370 858

Owners’ Equity 91,765 183,359 207,126 Paid-in capital 56,000 89,900 107,708 Reserve 8,230 7,516 11,151 Undistributed earnings 152 15,684 18,040 Others 27,383 70,259 70,227


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 19.6% 33.0%Operating profit N/A 55.2% 35.5%EBITDA N/A 12.3% 11.4%Net profit N/A 55.7% 30.3%EPS N/A N/A N/AProfitability (%)Gross Margin 24.2% 25.3% 26.1%Operating Margin 6.6% 5.6% 5.1%EBITDA Margin 9.5% 8.9% 7.5%Net Profit Margin 4.3% 5.6% 5.5%ROA 13.8% 9.1% 8.0%ROE 26.8% 13.9% 12.8%Liquidity and solvencyGross debt/equity (%) 94.7% 32.5% 83.3%Net debt/equity (%) 82.5% 20.2% 61.9%Int. coverage (x) 6.09 x 7.68 x 6.98 xCF int. coverage (x) N/A 1.41 x 7.52 xCurrent ratio (x) 1.21 x 2.77 x 1.27 xQuick ratio (x) 0.47 x 1.61 x 0.63 xNet debt (VND'mln) 75,728 37,049 128,154 Per share data (VND)EPS basic 1,150 1,791 2,333 EPS fully diluted - - - CFPS - - - Book value 8,567 17,118 19,336 Sales per share 26,640 31,865 42,381 EBITDA per share 2,538 2,851 3,176 DPS - - - Average O/S shares 10,711,756 10,711,756 10,711,756



HHC – HAI HA CONFECTIONARY JOINT STOCK COMPANY

Market: HASTC


HRS Equity Research

29th February 2008

Daily QHHC.HN, Q.HASTCI 1/2/2007 - 2/22/2008 (BKK)

Line, QHHC.HN, Last Trade(Last)2/22/2008, 39,900Line, Q.HASTCI, Last Trade(Last)2/22/2008, 239.02

PriceVND

0

40,000

45,000

50,000

55,000

60,000

65,000

70,000

PriceVND

.12

240

270

300

330

360

390

420

450

Vol, QHHC.HN, Last Trade2/22/2008, 33,400

VolumeVND

.1234

50,000

100,000


Source: Reuter

Stock profile/ StatisticsReuter ticker HHC.HNPrice Last (VND): 22-Feb-08 39,900 52 Wk high (VND): - 52 Wk low (VND): - Market capital:(mln' dongs) 218,453 Outstanding Share 5,475,000 Free float 2,500,000 Beta N/A3 months average daily volume - Current room for foreign investor 2,680,750 Share performance (%) YTD 1M 3M 6MAbsolute (%) -29% -5% -31% N/AIndex change (%) -24% -12% -30% -5%Relative (%) -5% 7% -1% N/A Key Indicators 2005 2006 2007*Net Sales 330,058 325,830 341,248 Sales growth (%) N/A -1.3% 4.7%EPS growth (%) N/A N/A -3.7%P/E (x) N/A 10.66 x 11.07 xP/CF (x) N/A 6.56 x 9.52 xEV/EBIDA (x) N/A 7.41 x N/ADPS (VND) - - - DY (%) 0.0% 0.0% 0.0%Net gearing (%) 32.2% 22.1% 18.3%Altman Z-score N/A 3.69 3.72ROE (%) 23.3% 20.6% 19.9%BV (VND) N/A 18,134 18,110 P/BV (x) N/A 2.20 x 2.20 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesMr. Quach Dai Dac Chairman Bachelor of business 1978 0.07%Mr. Tran Hong Thanh CEO Bachelor of business 1985 2.59%Ms. Do Thi Kim Xuan Chief Accountant Bachelor of business 1982 0.18%Ms. Nguyen Thi Thuy Hong Chief of Compliance MBA 1993 0.00%

Business summary

Hai Ha Confectionery JSC (HHC) manufactures and sells candies, sweets and snack foods. Main products are candies including gum, jelly, hard candy, toffee, fudge, cooky, and chocolate pie. Its production lines have a total capacity of 70 tons per day. Its major geographical market is the Northern provinces of Vietnam.

The Company was listed on Hanoi Securities Trading Centre since November 2007. HHC has a nationwide distribution network which accounts for 90% of the total sales.

HHC’s net sales in 2007 increased 4.8% to VND341bln (US$ 21.3mln), took the net income to VND19.7bln (US$1.23mln), up 31% compared to 2006. In 2008, HHC set its target at 2.9% of sales growth and 16.3% net income growth. Ownership and major shareholders

Major holders of HHC are Vinataba (State-owned) (51%) and Ms. Truong Thi Hong Khanh (5%)

State51%

Others49%




HHC had invested a total of VND28bln (US$1.75mln) to install new production lines which allows HHC to target new segments in snack foods and soft cake.



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF N/A 24,434 N/A

Profit (loss) before tax N/A 17,472 N/ADepreciation & amortisation N/A 12,690 N/AChange in working capital N/A (4,754) N/AOthers N/A (974) N/A

Investment CF N/A (9,252) N/AFinancing CF N/A (8,256) N/ANet increase (decrease) in cash and cash equivalents N/A 6,926 N/A

Income Statement (VND'mln 2005 2006 2007*Net Sales 330,058 325,830 341,248




Net Investment income (loss) (3,277) (2,468) (1,517) Net other non-op. JV+Assoc. - - - Net exceptionals 1,233 983 1,492 Profit (loss) before tax 14,756 17,472 22,950 Income taxes - (2,446) (3,212) Minority Interest - - - Net profit (loss) after tax 14,756 15,026 19,738 EBITDA N/A 31,647 N/AEPS basic (VND) N/A 3,742 3,605 EPS fully diluted (VND) N/A 3,742 3,605 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 157,177 166,853 194,764 Current Assets 108,365 120,227 110,334


Non-Current Assets 48,812 46,626 84,430 Investment properties - - - LT invesments - - - Fixed Asset 48,525 42,599 80,624 LT receivales - - - Others 287 4,027 3,806



Non-Current Liabilities 20,921 16,994 19,377 Long term debts 20,360 16,126 18,125 Others 561 868 1,252

Owners’ Equity 63,233 72,820 99,153 Paid-in capital 40,156 40,156 54,750 Reserve 18,697 27,189 38,133 Undistributed earnings 4,380 5,475 2,614 Others - - 3,656


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -1.3% 4.7%Operating profit N/A 21.9% 30.1%EBITDA N/A N/A N/ANet profit N/A 1.8% 31.4%EPS N/A N/A -3.7%Profitability (%)Gross Margin 13.8% 15.8% 17.5%Operating Margin 5.1% 5.8% 6.7%EBITDA Margin N/A 9.7% N/ANet Profit Margin 4.5% 4.6% 5.8%ROA 18.8% 9.3% 10.9%ROE 46.7% 22.1% 23.0%Liquidity and SolvencyGross debt/equity (%) 148.6% 129.1% 96.4%Net debt/equity (%) 128.5% 102.2% 70.2%Int. coverage (x) 3.96 x 5.57 x 8.81 xCF int. coverage (x) N/A 8.17 x N/ACurrent ratio (x) 1.48 x 1.56 x 1.45 xQuick ratio (x) 0.56 x 0.72 x 0.68 xNet debt (VND'mln) 81,256 74,419 69,619 Per share data (VND)EPS basic N/A 3,742 3,605 EPS fully diluted N/A 3,742 3,605 CFPS N/A 6,085 4,192 Book value N/A 18,134 18,110 Sales per share N/A 81,141 62,328 EBITDA per share N/A 7,881 N/ADPS - - - Average O/S shares N/A 4,015,600 5,475,000



ABT - AQUATEX BENTRE

Market: HOSE

Sector: Aquaproduct

HRS Equity Research

29th February 2008

Daily QABT.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QABT.HM, Last Trade(Last)2/22/2008, 70,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

0

70,000

80,000

90,000

100,000

110,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QABT.HM, Last Trade2/22/2008, 60,810

VolumeVND

.1234

30,000

60,000

90,000


Source: Reuters

Stock profile/ StatisticsReuter ticker ABT.HMPrice Last (VND): 22-Feb-08 70,000 52 Wk high (VND): 27-Feb-07 125,091 52 Wk low (VND): 21-Feb-08 67,000 Market capital:(mln' dongs) 441,000 Outstanding Share 6,299,999 Free float 6,900,000 Beta 0.73 3 months average daily volume 18,305 Current room for foreign investor - Share performance (%) YTD 1M 3M 6MAbsolute (%) -19% -1% -22% -29%Index change (%) -24% -10% -31% -24%Relative (%) 6% 9% 9% -5% Key Indicators 2005 2006 2007*Net Sales 282,433 331,215 429,706 Sales growth (%) N/A 17.3% 29.7%EPS growth (%) N/A N/A 2.7%P/E (x) N/A 3.14 x 5.00 xP/CF (x) N/A 30.93 x N/AEV/EBIDA (x) 5.93 x 9.79 x 14.19 xDPS (VND) - 2,000 3,000 DY (%) - 2.9% 4.3%Net gearing (%) 18.5% 1.3% - Altman Z-score N/A 5.11 2.44ROE (%) 27.7% 34.8% 14.2%BV (VND) N/A 22,920 57,536 P/BV (x) N/A 3.05 x 1.22 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Aquatex BenTre was equitized in December 2003 and officially listed on HOSE since December 2006. In October 2007, the company raised its charter capital from VND63bln (US$3,937mln) to VND81bln (US$5,062mln).

The company is mainly involved in aquaculture; processing and exporting fisheries products. The main product lines are white and yellow clam, ark shell, basa fish, and black tiger shrimp. ABT has two fish farming, total area of 57ha, and one processing plant with a capacity of 7,300 tons per year.

In 2006, Aquatex BenTre was the leading exporter of ark shell in Vietnam with a market share of about 21% (2,677 tons) and ranked 18th in the basa fish exports market. ABT mainly export seafood products to the EU (73%), Japan (11%) and the US (2%).

In 2007, the ABT’s net income was VND40.9bln (US$2.55mln), increasing 63.31% compared with 2006. The expected revenue in 2008 is VND520bln (US$32.5mln). Ownership and major shareholders

Deutsche Asset Management (Asia) Limited is currently ABT’s largest shareholder with a 13.55% stake. Vietnam Investment Limited, the second largest shareholder, holds 420,876 shares (6.68%). ManagementName Title Background Start date % of SharesMr. Tran Dang Tuan Chairman/CEO Bachelor 2001 2.70%Mrs. Nguyen Thi Thu Huyen Board member/ F&A director Bachelor 2004 0.06%Mrs. Nguyen Thi Len Compliance Bachelor 0.14%


foreigners49%

others51%



From 2007 to 2009, Aquatex Bentre has been planning to construct the fish farming Tien Thuy (area: 28 ha) with capacity of 15,000 tons per year, total investment is VND168bln (US$10.5mln). ABT also intends to expand An Phat Basa fillet processing factory with capacity of 5,000 tons/year, total investment is VND78bln (US$4.875mln).




Collections from AR 185,737 325,443 435,010 Payment for AP (159,565) (270,381) (400,358) Payment for employees salaries (17,611) (22,555) (27,023) Payment for interest expense (3,755) (3,777) (3,513) Payment for enterprise tax (23) - (3,314) Other cash inflows from operating activitie 19,945 58,372 89,790 Other cash outflows from operating activit (29,585) (79,986) (138,587)

Net cash flows from (used in) operating activities (4,857) 7,116 (47,995)

Net cash flows from (used in) investing activities (7,331) (5,716) (187,047)

Net cash flows from (used in) financing activities 14,316 (2,138) 247,706 Net increase (decrease) in cash and cash equivalents 2,128 (738) 12,664





Net Investment income (loss) (2,479) (2,392) 12,211 Net other non-op. JV+Assoc. - - - Net exceptionals 293 823 795 Profit (loss) before tax 7,811 25,057 45,404 Income taxes - - (4,483) Minority Interest - - - Net profit (loss) after tax 7,811 25,057 40,921 EBITDA 9,996 26,627 32,397 EPS basic (VND) N/A 7,968 8,187 EPS fully diluted (VND) N/A 7,968 8,187



Non-Current Assets 29,161 30,927 232,645 Investment properties - - - LT invesments 513 4,536 184,166 Fixed Asset 24,773 24,472 46,594 LT receivales - - - Others 3,875 1,918 1,885



Non-Current Liabilities 5,202 932 50 Long term debts 5,202 916 - Others - 16 50

Owners’ Equity 28,178 72,079 287,597 Paid-in capital 25,000 33,000 63,000 Reserve 3,025 9,185 17,091 Undistributed earnings - 9,014 12,821 Others 153 20,880 194,685


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 17.3% 29.7%Operating profit N/A 222.4% 84.1%EBITDA N/A 166.4% 21.7%Net profit N/A 220.8% 63.3%EPS N/A N/A 2.7%Profitability (%)Gross Margin 12.3% 17.6% 16.1%Operating Margin 3.5% 8.0% 7.5%EBITDA Margin 3.5% 8.0% 7.5%Net Profit Margin 2.8% 7.6% 9.5%ROA 16.8% 23.8% 15.3%ROE 55.4% 50.0% 22.8%Liquidity and solvencyGross debt/equity (%) 230.5% 63.3% 44.4%Net debt/equity (%) 210.2% 56.4% 38.2%Int. coverage (x) 2.90 x 7.05 x 8.27 xCF int. coverage (x) -0.29 x 2.88 x -12.66 xCurrent ratio (x) 1.07 x 1.94 x 1.45 xQuick ratio (x) 0.68 x 1.39 x 1.17 xNet debt (VND'mln) 59,243 40,636 109,773 Per share data (VND)EPS basic N/A 7,968 8,187 EPS fully diluted N/A 7,968 8,187 CFPS N/A 2,263 N/ABook value N/A 22,920 N/ASales per share N/A 105,322 85,966 EBITDA per share N/A 8,467 N/ADPS - 2,000 3,000 Averaged O/S shares - 3,144,795 4,998,575



ICF - INVESTMENT COMMERCE FISHERIES CORPORATION

Market: HOSE

Sector: Aquaproduct

HRS Equity Research

29th February 2008

Daily QICF.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QICF.HM, Last Trade(Last)2/22/2008, 22,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

020,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

1,100

1,150

Vol, QICF.HM, Last Trade2/22/2008, 64,930

VolumeVND

.1234

100,000

200,000

300,000

400,000


Source: Reuter

Stock profile/ StatisticsReuter ticker ICF.HMPrice Last (VND): 22-Feb-08 22,500 52 Wk high (VND): 13-Mar-07 65,800 52 Wk low (VND): 22-Feb-08 22,500 Market capital:(mln' dongs) 265,500 Outstanding Share 11,800,000 Free float 5,700,000 Beta 1.35 3 months average daily volume 92,931 Current room for foreign investor 5,597,340 Share performance (%) YTD 1M 3M 6MAbsolute (%) -38% -17% -50% -16%Index change (%) -24% -10% -31% -24%Relative (%) -14% -7% -19% 8% Key Indicators 2005 2006 2007*Net Sales 281,202 283,154 326,025 Sales growth (%) N/A 0.7% 15.1%EPS growth (%) N/A 536.1% 74.3%P/E (x) 150.17 x 23.61 x 13.54 xP/CF (x) 11.89 x -18.29 x 13.54 xEV/EBIDA (x) 21.88 x 13.62 x N/ADPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) 0.24 0.06 - Altman Z-score 2.37 2.59 2.20ROE (%) 3.3% 9.1% 13.7%BV (VND) 4,499 10,496 12,167 P/BV (x) 5.00 x 2.14 x 1.85 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited Project and investment

In June 2008, INCOMFISH will begin to operate Powder factory with initial investment of VND16bln (US$1mln) and its capacity of 10tons per day. After beginning, it will earn VND176bln (US$11.7mln) for INCOMFISH.

The Company has a frozen seafood firm in Dong Thap province (INCOMFISH has contributed 49% of total investment) in June 2007. This project is expected to earn a ROI of 30% for INCOMFISH. The charter capital of this project was VND368bln (US$23mln). This firm should begin operations in September 2008.

It is establishing INCOMFISH Corporation in the USA and EU with other joint venture partners.

In the real estate market, INCOMFISH set up a joint venture with Saga Corp to construct a building at 32 Mac Dinh Chi Street, HCMC.

Business summary

Established in 1999, Investment Commerce Fisheries Corporation (INCOMFISH) has been engaged in the aquaculture sector. Since November 2006, INCOMFISH was listed on HASTC. The Company mainly manufactures and processes seafood and farmed fish products.

With a total production of over 5000tons, the Company export more than 95% to the EU (about 50 % of sales), Japan (more than 36%) and the USA (about 10%). Revenue reached VND326bln (US$20.5mln) with growth of 25%. Planned revenue in 2008 is growing at about VND680bln (US$42.5mln). And the net profit will be averagely VND20bln (US$1.25mln) in 2008


Ms Nguyen Thi Kim Xuan a cofounder of Incomfish currently holds 20.21% of stake. Her sister, Ms Nguyen Thi Kim Thu also a cofounder holds 5%. Until now, foreigner investors only hold 1% of stake.

foreigners1%

others99%

ManagementName Title Background Start date % of SharesMrs. Nguyen Thi Kim Xuan Chairman Engineer 1999 20.21%Mr. Trinh Ba Hoang Board member/ CEO Bachelor 2001 2.40%Mrs. Nguyen Thi Kim Thu Board member/ CFO Bachelor 2002 5.00%Mrs. Nguyen Thi Ngoc Thao Compliance Diploma 1999 0.14% Source: Company data



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 22,333 (14,519) N/A

Profit (loss) before tax 1,768 11,246 N/ADepreciation & amortisation 6,056 5,916 N/AChange in working capital 14,187 (31,681) N/AOthers 322 - N/A

Investment CF (1,950) (24,574) N/AFinancing CF (15,599) 37,615 N/ANet increase (decrease) in cash and cash

4,784 (1,478) N/A





Net Investment income (loss) (6,537) (11,459) (5,240) Net other non-op. JV+Assoc. - - - Net exceptionals (4,136) (365) (276) Profit (loss) before tax 1,768 11,246 19,606 Income taxes - - - Minority Interest - - - Net profit (loss) after tax 1,768 11,246 19,606 EBITDA 18,497 28,986 N/AEPS basic (VND) 150 953 1,662 EPS fully dilutied (VND) 150 953 1,662 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 199,676 259,062 331,716 Current Assets 92,123 133,130 193,569


Non-Current Assets 107,553 125,932 138,147 Investment properties - - 1,611 LT invesments 15,115 39,600 51,121 Fixed Asset 80,562 74,735 71,932 LT receivales - - - Others 11,876 11,597 13,483



Non-Current Liabilities 12,606 8,024 6,524 Long term debts 12,606 8,024 - Others - - 6,524

Owners’ Equity 53,093 123,848 143,565 Paid-in capital 51,949 118,000 118,000 Reserve (1,031) 76 69 Undistributed earnings (9,490) 1,756 21,372 Others 11,665 4,016 4,124


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 0.7% 15.1%Operating profit N/A 96.7% 71.2%EBITDA N/A 56.7% N/ANet profit N/A 536.1% 74.3%EPS N/A 536.1% 74.3%Profitability (%)Gross Margin 11.3% 14.7% 16.0%Operating Margin 4.4% 8.1% 7.7%EBITDA Margin 6.6% 10.2% N/ANet Profit Margin 0.6% 4.0% 6.0%ROA 1.8% 4.9% 6.6%ROE 6.7% 12.7% 14.7%Liquidity and SolvencyGross debt/equity (%) 276.1% 109.2% 131.1%Net debt/equity (%) 262.3% 104.5% 114.6%Int. coverage (x) 1.67 x 2.08 x N/ACF int. coverage (x) 3.99 x -0.31 x #DIV/0!Current ratio (x) 0.69 x 1.05 x 1.07 xQuick ratio (x) 0.23 x 0.34 x 0.52 xNet debt (VND'mln) 139,267 129,376 164,546 Per share data (VND)EPS basic 150 953 1,662 EPS fully dilutied 150 953 1,662 CFPS 1,893 (1,230) 1,662 Book value 4,499 10,496 12,167 Sales per share 23,831 23,996 27,629 EBITDA per share 1,568 2,456 N/ADPS (VND) N/A N/A N/AO/S shares 11,800,000 11,800,000 11,800,000



ANV- NAM VIET CORPORATION

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008

Daily QANV.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QANV.HM, Last Trade(Last)2/22/2008, 71,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

070,000

75,000

80,000

85,000

90,000

95,000

PriceVND

.12

700

750

800

850

900

950

1,000

1,050

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1,150

Vol, QANV.HM, Last Trade2/22/2008, 97,210

VolumeVND

.1234

100,000

200,000

16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 02 16 01 18Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Source: Reuter

Stock profile/ StatisticsReuter ticker ANV.HMPrice Last (VND): 22-Feb-08 71,500 52 Wk high (VND): - 52 Wk low (VND): - Market capital:(mln' dongs) 4,719,000 Outstanding Share 66,000,000 Free float 27,100,000 Beta N/A3 months average daily volume - Current room for foreign investor 20,983,040 Share performance (%) YTD 1M 3M 6MAbsolute (%) -19% -12% N/A N/AIndex change (%) -24% -10% -31% -24%Relative (%) 6% -2% N/A N/A Key Indicators 2005 2006 2007*Net Sales 1,212,316 2,707,076 3,193,437 Sales growth (%) N/A 123.3% 18.0%EPS growth (%) N/A N/A N/AP/E (x) N/A N/A 62.52 xP/CF (x) N/A N/A 2.51 xEV/EBIDA (x) 0.00 x 0.98 x 12.01 xDPS (VND) N/A N/A 1,200 DY (%) N/A N/A 1.7%Net gearing (%) N/A 7.7% 1.4%Altman Z-score N/A N/A 32.70ROE (%) N/A 36.7% 21.7%BV (VND) N/A N/A 28,501 P/BV (x) N/A N/A 2.51 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesDoan Toi Chairman/CEO Bachelor of law 2001 45.38%Do Thi Thao Compliance Bachelor of accounting 2003 0.00%Doan Van Nho Chief of accountant Bachelor of accounting 2003 0.00% Source: Company data

Business summary

Nam Viet Corporation is involved in processing and exporting tra, basa and offer seafood products. ANV has three production plants with a total capacity of 500 tons per day. The Company was equitized in October 2006 and listed on HOSE in October 2007.

Navico (ANV) is the largest exporter in basa fish market with total export value was US$160,224mln in 2006 (accounted for 20.7% of total exporting value of Vietnam). Exports revenue contributes 60% to the total revenue. Most of its export revenue comes from Europe, Russia, and Asia (Singapore, Malaysia, Hongkong, China, and Korean). ANV plans to achieve VND5.076bln (US$317.25mln) in total revenue in 2008.

In January 2008, the company began to operate a new processing plant with a capacity of 700 tons per day, raising the total capacity to 1,200 tons per day.


Management of ANV collectively forms the largest shareholder with 59% holding as of the end 2007


In 2008, Navico plans to construct a commercial feed factory which will have a capacity of 750,000 tons per year.

ANV intends to build a new factory to produce added-value products from Tra and Basa fish that supply domestic and export market in 2009.

employee59%

others24%

foreigners17%





Collections from AR N/A 14,809 5,646,303 Payment for AP N/A N/A (4,274,941) Payment for employees salaries N/A N/A (88,332) Payment for interest expense N/A N/A (23,053) Payment for enterprise tax N/A N/A (18,259) Other cash inflows from operating activities N/A 70,577 4,313,801 Other cash outflows from operating activitie N/A N/A (3,777,134)

Net cash flows from (used in) operating activities N/A 85,386 1,778,385 Net cash flows from (used in) investing activities N/A N/A (1,528,380) Net cash flows from (used in) financing activities N/A N/A (69,613) Net increase (decrease) in cash and cash equivalents N/A 85,386 180,391


COGS N/A (2,160,640) (2,486,914) Gross profit N/A 546,436 706,523

Operating expenses N/A (247,102) (316,286) EBIT 92,665 299,334 390,237 Net Interest N/A (37,523) (22,535)

Interest income N/A - - Interest expense N/A (37,523) (22,535)

Net Investment income (loss) N/A (24,470) 31,582 Net other non-op. JV+Assoc. N/A - - Net exceptionals N/A 3,079 8,901 Profit (loss) before tax N/A 277,943 430,720 Income taxes N/A (11,643) (44,369) Minority Interest N/A - - Net profit (loss) after tax N/A 266,300 386,352 EBITDA N/A 299,334 390,237 EPS basic (VND) N/A N/A 6,180 EPS fully dilutied (VND) N/A N/A 6,180 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets N/A 1,103,013 2,264,679 Current Assets N/A 846,441 1,248,803

Cash & ST investment N/A 85,386 265,763 Stock & debtors N/A 748,729 947,880 Others N/A 12,326 35,161

Non-Current Assets N/A 256,572 1,015,876 Investment properties N/A - - LT invesments N/A 73,797 825,810 Fixed Asset N/A 158,222 165,009 LT receivales N/A - - Others N/A 24,553 25,057

Total liabilities N/A 377,653 482,959 Current Liabilities N/A 321,425 457,671

AP N/A 99,428 46,391 ST borrowings N/A 187,684 117,664 Others N/A 34,313 293,616

Non-Current Liabilities N/A 56,228 25,288 Long term debts N/A 55,943 25,001 Others N/A 286 287

Owners’ Equity N/A 725,359 1,781,720 Paid-in capital N/A 600,000 660,000 Reserve N/A 390 8,639 Undistributed earnings N/A 124,764 501,115 Others N/A 206 611,965


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 123.3% 18.0%Operating profit N/A 274.4% 53.5%EBITDA N/A 223.0% 30.4%Net profit N/A 267.8% 45.1%EPS N/A N/A N/AProfitability (%)Gross Margin N/A 20.2% 22.1%Operating Margin 7.6% 11.1% 12.2%EBITDA Margin 7.6% 11.1% 12.2%Net Profit Margin 6.0% 9.8% 12.1%ROA N/A 48.3% 22.9%ROE N/A 73.4% 30.8%Liquidity and solvencyGross debt/equity (%) N/A 52.1% 27.1%Net debt/equity (%) N/A 40.3% 12.2%Int. coverage (x) N/A 7.98 x 17.32 xCF int. coverage (x) N/A N/A 78.14 xCurrent ratio (x) N/A 2.63 x 2.73 xQuick ratio (x) N/A 1.99 x 2.16 xNet debt (VND'mln) - 292,267 217,197 Per share data (VND)EPS basic N/A N/A 6,180 EPS fully diluted N/A N/A 6,180 CFPS N/A N/A 28,447 Book value N/A N/A 28,501 Sales per share N/A N/A 51,083 EBITDA per share N/A N/A 6,242 DPS - - 1,200 Averaged O/S shares - - 62,515,068



MPC –MINH PHU SEA FOOD CORPORATE

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008

Daily QMPC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QMPC.HM, Last Trade(Last)2/22/2008, 36,100Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QMPC.HM, Last Trade2/22/2008, 30,310

VolumeVND

.1234

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Source: Reuters

Stock profile/ StatisticsReuter ticker MPC .HMPrice Last (V ND): 22-Feb-08 36,100 52 W k high (V ND): 17-O ct-07 88,400 52 W k low (V ND): 22-Feb-08 36,100 Market capital:(mln' dongs) 2,527,000 O utstanding Share 70,000,000 F ree float 700,000 Beta 0.98 3 months average daily volume 123,497 C urrent room for foreign investor 23,825,710 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) -38% -21% -47% -28%Index change (% ) -24% -10% -31% -24%Relative (% ) -13% -11% -17% -4%

Business summary

Established in December, 1992. Minh Phu Seafood Corporation processes and exports agricultural products, principally shrimp.

Minh Phu has the biggest exporting shrimp selling in Vietnam, 11.532 tons in 2006. Its four main export markets are the United States (56.66%), Japan (16.9%), Canada (8.9%) and Australia (5.6%)

MPC was listed on Ho Chi Minh Stock Exchange since 2006.

Ownership and major shareholders.

The foreign holding has reached 14.96% with 10% held by Temasek Holdings.

Two other major shareholders are Mr Lam Van Quang (20.7%), Ms Chu Thi Binh (20.7%).

others85%

foreigners15%

ManagementName Title Background Start date % of SharesLe Van Quang Chairman Engineer 1981 20.70%Le Van Quang CEO Engineer 1981 20.70%Nguyen Viet Hong Chief Accountant Engineer 1999 0.01%Luu Minh Trung Chief Compliance Bachelor of Finance 1999 0.01%


Key Indicators 2005 2006 2007*Net Sales 2,027,425 1,352,531 3,304,246 Sales growth (% ) N/A -33.3% 144.3%EPS growth (% ) N/A N/A 83.5%P/E (x) N/A 31.54 x 17.19 xP/C F (x) N/A 8.54 x -20.70 xEV /EBIDA (x ) N/A 25.69 x 26.68 xDPS (V ND) - - - DY (% ) N/A N/A N/ANet gearing (% ) N/A 3.1% N/AA ltman Z-score N/A 6.76 9.76RO E (% ) N/A 11.4% 22.9%BV (V ND) N/A 10,039 9,160 P/BV (x) N/A 3.60 x 3.94 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited


Minh Phu plans to invest US$20mln in Mseafood (a distributor in the United States )

Minh Phu intends to build a new basa fish processing plant in Hau Giang Province, the Mekong Delta region.

Finally the company will establish a financial lending company to provide financial support to fish farmers.



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF N/A 288,596 (122,061)

Pofit (loss) before tax N/A 88,408 158,817 Depreciation & amortisation N/A 8,946 6,173 Change in working capital N/A 191,640 (284,502) Others N/A (398) (2,549)

Investment CF N/A (38,037) (691,806) Financing CF N/A (227,744) 809,514 Net increase (decrease) in cash and cash equivalents N/A 22,815 (4,353)


COGS N/A (1,207,743) (3,141,715) Gross profit N/A 144,788 162,531

Operating expenses N/A (45,927) (64,137) EBIT N/A 98,861 98,394 Net Interest N/A (21,141) -

Interest income N/A - - Interest expense N/A (21,141) -

Net Investment income (loss) N/A (14,353) 57,465 Net other non-op. JV+Assoc. N/A - - Net exceptionals N/A 3,900 2,958 Profit (loss) before tax N/A 88,408 158,817 Income taxes N/A (10,260) (11,804) Minority Interest N/A - - Net profit (loss) after tax N/A 78,148 147,013 EBITDA N/A 107,807 104,566 EPS basic (VND) N/A 1,145 2,100 EPS fully dilutied (VND) N/A 1,145 2,100 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets N/A 1,033,175 918,818 Current Assets N/A 862,688 529,570


Non-Current Assets N/A 170,487 389,248 Investment properties N/A - - LT invesments N/A 21,982 347,082 Fixed Asset N/A 134,104 29,193 LT receivales N/A 2,536 2,536 Others N/A 11,865 10,436



Non-Current Liabilities N/A 21,050 - Long term debts N/A 21,050 - Others N/A - -

Owners’ Equity N/A 685,455 641,227 Paid-in capital N/A 600,000 600,000 Reserve N/A 7,597 2,368 Undistributed earnings N/A 77,858 38,859 Others N/A - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -33.29% 144.30%Operating profit (loss) N/A N/A 84.43%EBITDA N/A N/A -3.01%Net profit N/A N/A 88.12%EPS N/A N/A 83.50%Profitability (%)Gross Margin N/A 7.3% 3.0%Operating Margin N/A 7.3% 3.0%EBITDA Margin N/A 8.0% 3.2%Net Profit Margin N/A 5.8% 4.4%ROA N/A 15.1% 15.1%ROE N/A 22.8% 22.2%Liquidity and solvencyGross debt/equity (%) N/A 49.0% 43.3%Net debt/equity (%) N/A 44.4% 41.0%Int. coverage (x) N/A 4.68 x N/ACF int. coverage (x) N/A 14.65 x -2.28 xCurrent ratio (x) N/A 2.74 x 1.91 xQuick ratio (x) N/A 2.21 x 1.61 xNet debt (VND'mln) - 304,602 262,945 Per share data (VND)EPS basic N/A 1,145 2,100 EPS fully diluted N/A 1,145 2,100 CFPS N/A 4,227 (1,744) Book value N/A 10,039 9,160 Sales per share N/A 19,809 47,204 EBITDA per share N/A 1,579 1,494 DPS - - - Average O/S shares - 68,279,452 68,279,452



AGF- AGIFISH COMPANY Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008

Daily QAGF.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QAGF.HM, Last Trade(Last)2/22/2008, 53,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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PriceVND

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Vol, QAGF.HM, Last Trade2/22/2008, 15,920

VolumeVND

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Source: Reuter

Stock profile/ StatisticsReuter ticker AGF.HMPrice Last (VND): 22-Feb-08 53,000 52 Wk high (VND): 2-Mar-07 129,167 52 Wk low (VND): 22-Feb-08 53,000 Market capital:(mln' dongs) 681,542 Outstanding Share 12,859,288 Free float 8,700,000 Beta 0.82 3 months average daily volume 23,393 Current room for foreign investor 230,602 Share performance (%) YTD 1M 3M 6MAbsolute (%) -35% -20% -40% -46%Index change (%) -24% -10% -31% -24%Relative (%) -11% -10% -10% -22% Key Indicators 2005 2006 2007*Net Sales 786,182 1,190,906 1,233,734 Sales growth (%) N/A 51.5% 3.6%EPS growth (%) N/A N/A -51.6%P/E (x) N/A 6.24 x 10.94 xP/CF (x) N/A N/A N/AEV/EBIDA (x) 3.48 x 7.41 x 11.05 xDPS (VND) - 600 1,200 DY (%) - 1.1% 2.3%Net gearing (%) 10.7% 0.3% - Altman Z-score N/A 4.31 3.04ROE (%) 22.0% 15.5% 6.3%BV (VND) N/A 48,119 56,971 P/BV (x) N/A 1.10 x 0.93 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

In year 2008, besides continuing constructing the cold storage warehouse AGF8 in Chau Thanh district, the total investment is VND46.9bln (US$2.9mln).

An Giang Fishery also wins two bids for An Giang University to build their dormitory and auditorium.

Business summary

An Giang Fisheries Import & Export Joint-Stock Company was equitized in 2001. Since May 2002, AGF was officially listed in HOSE Vietnam.

The company’s main areas of operation include manufacturing, processing, trading, importing and exporting frozen seafood products, agriculture-products, food, and agriculture machinery. Agifish is the second largest exporter of Tra and Basa frozen fillets producing with capacity of 16,000 tons per year. Their main import markets are U.S, the Europe, Hong Kong, and Singapore, among others.


The Government is AGF’s largest shareholder with a 20% stake. Then are Wareham Group limited (16.61%), PXP Vietnam Fund Limited (9.82%) and Sacombank (5.45%).

State20%

others33%

foreigners47%

ManagementName Title Background Start date % of SharesMr. Ngo Phuoc Hau Chairman/CEO Bachelor 2001 1.18%Mr. Nguyen Van Trieu Compliance/ chief of accountant Diploma 1997 0.00% Source: Company data



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 112,436 (43,653) (33,523)

Profit (loss) before tax 25,549 50,670 44,783 Depreciation & amortisation 12,025 13,202 25,035 Change in working capital 76,284 (104,837) (102,160) Others (1,423) (2,688) (1,181)

Investment CF (28,981) (126,980) (307,852) Financing CF (82,585) 181,805 344,595

Net increase (decrease) in cash and cash equivalents 870 11,172 3,220

Income Statement (VND'mln) 2005 2006 2007*Net Sales 786,182 1,190,906 1,233,734

COGS (680,791) (1,047,145) (1,071,110) Gross profit 105,391 143,760 162,624



Net Investment income (loss) (4,519) (1,448) (2,894) Net other non-op. JV+Assoc. - - - Net exceptionals (415) (222) 1,400 Profit (loss) before tax 25,549 50,670 44,783 Income taxes (3,194) (4,054) (5,195) Minority Interest - - - Net profit (loss) after tax 22,355 46,616 39,588 EBITDA 42,509 65,542 71,312 EPS basic (VND) N/A 7,469 3,617 EPS fully diluted (VND) N/A 7,469 3,617 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 251,633 468,269 845,426 Current Assets 150,771 274,879 362,377


Non-Current Assets 100,862 193,390 483,049 Investment properties - - - LT invesments 100 100 150,575 Fixed Asset 95,558 187,100 320,263 LT receivales - - - Others 5,203 6,190 12,211



Non-Current Liabilities 11,200 1,416 714 Long term debts 10,936 993 - Others 264 423 714

Owners’ Equity 101,768 300,316 623,470 Paid-in capital 41,791 78,876 128,593 Reserve 42,395 60,144 85,667 Undistributed earnings 15,706 36,584 23,704 Others 1,876 124,712 385,506


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 51.5% 3.6%Operating profit N/A 96.0% -14.8%EBITDA N/A 54.2% 8.8%Net profit N/A 108.5% -15.1%EPS N/A N/A -51.6%Profitability (%)Gross Margin 13.4% 12.1% 13.2%Operating Margin 3.9% 4.4% 3.8%EBITDA Margin 5.4% 5.5% 5.8%Net Profit Margin 2.8% 3.9% 3.2%ROA 17.8% 13.0% 6.0%ROE 43.9% 23.2% 8.6%Liquidity and solvencyGross debt/equity (%) 147.3% 55.9% 35.6%Net debt/equity (%) 145.5% 51.6% 33.4%Int. coverage (x) 4.36 x 7.66 x 5.13 xCF int. coverage (x) 17.08 x -5.39 x -2.72 xCurrent ratio (x) 1.09 x 1.65 x 1.64 xQuick ratio (x) 0.67 x 1.04 x 0.81 xNet debt (VND'mln) 148,076 154,992 208,250 Per share data (VND)EPS basic N/A 7,469 3,617 EPS fully diluted N/A 7,469 3,617 CFPS N/A - - Book value N/A 48,119 56,971 Sales per share N/A 190,816 112,735 EBITDA per share N/A 10,502 6,516 DPS - 600 1,200 Averaged O/S shares 6,241,130 6,241,130 10,943,660



Daily QACL.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QACL.HM, Last Trade(Last)2/22/2008, 68,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QACL.HM, Last Trade2/22/2008, 9,250

VolumeVND

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Source: Reuter

Stock profile/ StatisticsReuter ticker ACL.HMPrice Last (VND): 22-Feb-08 68,000 52 Wk high (VND): - 52 Wk low (VND): - Market capital:(mln' dongs) 612,000 Outstanding Share 9,000,000 Free float 3,600,000 Beta N/A3 months average daily volume 31,353 Current room for foreign investor 3,240,860 Share performance (%) YTD 1M 3M 6MAbsolute (%) -20% -6% -20% N/AIndex change (%) -24% -10% -31% -24%Relative (%) 4% 4% 11% N/A Key Indicators 2005 2006 2007*Net Sales 88,475 311,275 537,449 Sales growth (%) N/A 251.8% 72.7%EPS growth (%) N/A N/A N/AP/E (x) N/A N/A 9.00 xP/CF (x) N/A N/A N/AEV/EBIDA (x) 0.00 x 1.91 x 9.99 xDPS (VND) - - 3,300 DY (%) - - 4.9%Net gearing (%) N/A 26.9% 10.4%Altman Z-score N/A N/A 7.69ROE (%) N/A 69.4% 42.6%BV (VND) N/A N/A 14,514 P/BV (x) N/A N/A 4.69 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Cuu Long Fish Corporation officially started operating as a joint stock company in May 2007. Its charter capital is VND90bln, and the company has been listed on HOSE since August 2007.

Its main business is processing and exporting seafood products; especially basa fish. The Company has a capacity of 10,000 tons per year. In 2006, ACL was one of the 15 Vietnamese companies that had the largest exporting value in basa fish (ranked 13th, 7,835 tons, the total value was US$18mln, accounted for 2.4% of total exporting value). Exporting revenue represented 90% of the company’s total revenue. The main import markets of ACL’s product within Asian (30.76%), the EU (20.64%) and the UAE (32.61%).

ACL plans to achieve VND650bln (US$40.6mln) in total revenue in 2008 (growth more than 40% compared to 2007.) Ownership and major shareholders

Major shareholders of ACL are Le Thi Le (18.89%), Tran Van Nhan (12.34%), Ban Viet Security 5.56%), Asaivantage Global Limited Company (5.56%), and Viet Quoc Security (5.56%).

foreigners13%

others87%


ManagementName Title Background Start date % of SharesTran Van Nhan Chairman/CEO Business 1992 12.34%Vo Thi Kim Loan Chief of accountant Bachelor 2002 0.00%Tran Chi Thien Chief of compliance Engineer 2005 0.00%



In 2008, ACL is completing the construction of a new fish processing factory. The new processing plant has a design capacity of 150 tons per day, raising total capacity to 250 tons per day.

Concurrently, The Company is landing a fish feed manufacturing plant, which will be able to provide fish farmed in the Mekong Delta to 200,000 tons of feed per year.

Both factories are expected to be in operation by April 2008.

Management has announced the expansion of more than 100ha to farm fish. Operation should begin in April 2008.

ACL- CUU LONG FISH CORPORATION

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF N/A 10,073 (472)

Profit (loss) before tax N/A 36,134 63,578 Depreciation & amortisation N/A 3,098 4,457 Change in working capital N/A (32,516) (67,119) Others N/A 3,357 (1,387)

Investment CF N/A (4,939) (10,437) Financing CF N/A (5,294) 10,918 Net increase (decrease) in cash and cash equivalents N/A (160) 9


COGS N/A (246,151) (434,381) Gross profit N/A 65,124 103,067

Operating expenses N/A (24,102) (37,796) EBIT 5,071 41,022 65,271 Net Interest N/A (5,742) (4,213)

Interest income N/A - - Interest expense N/A (5,742) (4,213)

Net Investment income (loss) N/A (4,812) (1,572) Net other non-op. JV+Assoc. N/A - - Net exceptionals N/A (76) (122) Profit (loss) before tax N/A 36,134 63,578 Income taxes N/A - (7,901) Minority Interest N/A - - Net profit (loss) after tax N/A 36,134 55,676 EBITDA N/A 44,121 69,729 EPS basic (VND) N/A N/A 6,186 EPS fully diluted (VND) N/A N/A 6,186 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets N/A 137,722 216,486 Current Assets N/A 89,518 162,394


Non-Current Assets N/A 48,204 54,092 Investment properties N/A - - LT invesments N/A - - Fixed Asset N/A 39,712 45,692 LT receivales N/A - - Others N/A 8,493 8,400



Non-Current Liabilities N/A 14,010 13,725 Long term debts N/A 13,990 13,620 Others N/A 20 105

Owners’ Equity N/A 52,092 130,622 Paid-in capital N/A 22,300 90,000 Reserve N/A - 4,651 Undistributed earnings N/A 29,792 35,971 Others N/A - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 251.8% 72.7%Operating profit N/A 1772.3% 75.9%EBITDA N/A 770.1% 58.0%Net profit N/A 2033.1% 54.1%EPS N/A N/A N/AProfitability (%)Gross Margin 100% 20.9% 19.2%Operating Margin 6% 13.2% 12.1%EBITDA Margin 6% 14.2% 13.0%Net Profit Margin 2% 11.6% 10.4%ROA N/A 52.5% 31.4%ROE N/A 138.7% 60.9%Liquidity and solvencyGross debt/equity (%) N/A 164.4% 65.7%Net debt/equity (%) N/A 162.0% 64.8%Int. coverage (x) N/A 7.14 x 15.49 xCF int. coverage (x) N/A 2.75 x 0.89 xCurrent ratio (x) N/A 1.25 x 2.25 xQuick ratio (x) N/A 0.75 x 1.77 xNet debt (VND'mln) N/A 84,407 84,632 Per share data (VND)EPS basic N/A N/A 6,186 EPS fully diluted N/A N/A 6,186 CFPS N/A N/A - Book value N/A N/A 14,514 Sales per share N/A N/A 59,717 EBITDA per share N/A N/A 7,748 DPS N/A N/A 3,300 Averaged O/S shares - - 9,000,000



Daily QTS4.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QTS4.HM, Last Trade(Last)2/22/2008, 23,600Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QTS4.HM, Last Trade2/22/2008, 13,400

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Source: Reuters

Stock profile/ StatisticsReuter ticker TS4.HMPrice Last (VND): 22-Feb-08 23,600 52 Wk high (VND): 2-Oct-07 45,795 52 Wk low (VND): 22-Feb-08 23,600 Market capital:(mln' dongs) 128,581 Outstanding Share 5,448,355 Free float 1,600,000 Beta 1.09 3 months average daily volume 10,158 Current room for foreign investor 855,113 Share performance (%) YTD 1M 3M 6MAbsolute (%) -27% -9% -37% -26%Index change (%) -24% -10% -31% -24%Relative (%) -3% 1% -6% -3% Key Indicators 2005 2006 2007*Net Sales 83,880 151,827 172,904 Sales growth (%) N/A 81.0% 13.9%EPS growth (%) N/A N/A -25.0%P/E (x) N/A 9.73 x 12.98 xP/CF (x) N/A -5.47 x -2.48 xEV/EBIDA (x) 5.21 x 13.19 x 12.85 xDPS (VND) 1,200 500 1,200 DY (%) N/A 2.1% 5.1%Net gearing (%) N/A 15.7% 7.8%Altman Z-score N/A 3.22 4.06ROE (%) 14.1% 11.4% 7.1%BV (VND) N/A 21,314 25,681 P/BV (x) N/A 1.11 x 0.92 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited


The company has been investing in a high-class apartment building project at 331 Ben Van Don Dist.4, HCMC with VND153bln (US$9.56mln) of invested capital. The company plans to put this building into operations in quarter two of 2009.

The company is investing VND100bln (US$6.25mln) to build a new shrimp and basa fish processing factory in Dong Thap province. Design capacity is set at 10,000 tons per year and the factory is expected to be in operation in October 2008.

Business summary

Headquartered in Ho Chi Minh City, the Seafood JSC No 4 has one factory in Kien Giang Province. It mainly purchases, processes and exports seafood and agricultural products. It also trades equipments and materials used in the food processing sector. As of December 31, 2006, the company’s two largest export markets were the United States and Japan, contributing to 35.40% and 43.70% of total revenue respectively.

In August 2002, TS4 was listed on HOSE.

In 2007, the company reported net income of VND8bln (US$0.5mln), up 32.2% compared to 2006, revenue was VND173bln (US$10.8mln), up 13.9%.


As of June 2007, major holders are Seaprodex (18.75%), Citigroup Global Market Ltd (16.14%) and Mr. Nguyen Van Luc (9.77%).

Foreigners33%

Others53%

State14%

ManagementName Title Background Start date % of SharesMr. Vo Phuoc Hoa Chairman Bachelor Apr-06 10.33%Mr. Nguyen Van Luc CEO High school 2005 5.38%Ms. Nguyen Thi Hien Chief of Accountant Accounting Dec-92 0.21%Ms. Nguyen Thi Mai Huong Chief of Compliance Bachelor of Economic Aug-06 Source: Company data

TS4 – SEAFOOD JOINT STOCK COMPANY NO 4

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 3,131 (10,784) (41,928) Profit (loss) before tax 3,593 6,957 8,235

Depreciation & amortisation 858 925 2,149 Change in working capital (463) (3,565) (52,206) Others (858) (15,100) (107)

Investment CF (2,239) (23,142) (11,356) Financing CF (913) 34,406 55,223 Net increase (decrease) in cash and cash equivalents (21) 480 1,939



Operating expenses (7,737) (13,773) (11,741) EBIT 3,623 6,546 7,850 Net Interest (268) (238) -

Interest income - - - Interest expense (268) (238) -

Net Investment income (loss) (27) (189) (253) Net other non-op. JV+Assoc. - - - Net exceptionals (3) 599 638 Profit (loss) before tax 3,593 6,957 8,235 Income taxes (483) (897) (222) Minority Interest - - - Net profit (loss) after tax 3,110 6,060 8,014 EBITDA 4,481 7,471 9,999 EPS basic (VND) N/A 2,425 1,818 EPS fully diluted (VND) N/A 2,425 1,818 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 45,853 93,703 141,650 Current Assets 33,258 66,240 63,849

Cash & ST investment 376 856 4,027 Stock & debtors 31,552 61,862 57,296 Others 1,331 3,521 2,525

Non-Current Assets 12,595 27,463 77,802 Investment properties - - - LT invesments - - 76 Fixed Asset 8,597 25,635 75,978 LT receivales 3,822 - - Others 176 1,828 1,747

Total liabilities 23,730 40,449 28,474 Current Liabilities 23729.984 32,068 19,680


Non-Current Liabilities - 8,381 8,793 Long term debts - 8,381 8,793 Others - - -

Owners’ Equity 53,255 53,255 107,888 Paid-in capital 15,000 30,000 54,484 Reserve 6,884 6,115 1,301 Undistributed earnings 103 5,184 10,008 Others 6,653 11,956 42,097


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 81.0% 13.9%Operating profit N/A 76.8% 19.5%EBITDA N/A 66.7% 33.8%Net profit N/A 94.8% 32.2%EPS N/A N/A -25.0%Profitability (%)Gross Margin 13.5% 13.4% 11.3%Operating Margin 4.3% 4.3% 4.5%EBITDA Margin 5.3% 4.9% 5.8%Net Profit Margin 3.7% 4.0% 4.6%ROA 13.6% 8.7% 6.8%ROE 28.1% 16.1% 9.6%Liquidity and SolvencyGross debt/equity (%) 107.3% 76.0% 25.2%Net debt/equity (%) 105.6% 74.3% 21.6%Int. coverage (x) 13.50 x 27.56 x N/ACF int. coverage (x) 12.67 x -44.40 x -62.98 xCurrent ratio (x) 1.40 x 2.07 x 3.24 xQuick ratio (x) 1.00 x 1.47 x 2.05 xNet debt (VND'mln) 23,354 39,593 24,446 Per share data (VND)EPS basic N/A 2,425 1,818 EPS fully diluted N/A 2,425 1,818 CFPS N/A (4,316) (9,514) Book value N/A 21,314 25,681 Sales per share N/A 60,765 39,234 EBITDA per share N/A 2,990 2,269 DPS 1,200 500 1,200 Average O/S shares N/A 2,498,605 4,407,048



Daily QSJ1.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSJ1.HM, Last Trade(Last)2/22/2008, 31,900Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

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Vol, QSJ1.HM, Last Trade2/22/2008, 1,220

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Source: Reuters

Stock profile/ StatisticsReuter ticker SJ1.HMPrice Last (VND): 22-Feb-08 31,900 52 Wk high (VND): 13-Mar-07 58,238 52 Wk low (VND): 16-Jan-08 32,600 Market capital:(mln' dongs) 111,650 Outstanding Share 3,500,000 Free float 1,700,000 Beta 0.85 3 months average daily volume 11,191 Current room for foreign investor 1,227,870 Share performance (%) YTD 1M 3M 6MAbsolute (%) -18% -9% -24% -16%Index change (%) -24% -10% -31% -24%Relative (%) 6% 1% 7% 7% Key Indicators 2005 2006 2007*Net Sales 130,781 147,895 145,553 Sales growth (%) N/A 13.1% -1.6%EPS growth (%) N/A 7.3% -10.3%P/E (x) 12.02 x 11.20 x 12.49 xP/CF (x) 30.82 x 17.05 x -10.94 xEV/EBIDA (x) 8.82 x 10.33 x 13.43 xDPS (VND) - - - DY (%) 0.0% 0.0% 0.0%Net gearing (%) 0.0% 0.0% 0.0%Altman Z-score 8.75 8.06 6.39ROE (%) 20.0% 19.2% 7.8%BV (VND) 13,267 14,824 32,628 P/BV (x) 2.40 x 2.15 x 0.98 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Project and investment

SJ1 is building a new factory in the Tan Phu Trung Industrial Park, near Ho Chi Minh City. The initial investment of this project is estimated at VND26bln (US$1.63mln) and started in August 2007 and will complete in August 2008.

Once the new factory is put into operation, managements intend to demolish the current production plant to leave way for a new office building.

Business summary

Seafood JSC No1 (SJ1) mainly processes shrimps, cuttlefishes, octopuses and fishes. Sj1’s processing plant has a capacity of 6 tons per day.

The Company mainly exports to Japan, Europe, The US., and Australia. Export represents 90% of total revenue. In 2007, SJ1 reported VND145.6bln (US$9.1mln) net sales, slightly down from 2006. Management expects 2008 revenue and net income to increase 6% compared to 2007.

Ownership and major shareholder

Major shareholders of SJ1 are the State (25%) and Tetsuji Totsune (7%).

State25%

Others61%

Foreigners14%

ManagementName Title Background Start date % of SharesMs. Nguyễn Thị Bạch Nhạn CEO Bachelor of Accountance 1995 1.5%Ms. Nguyễn Thị Liên Phượng Chairman Bachelor of Biology&Chemistry 2000 1.7%Ms. Nguyễn Thị Hồng Ngọc Chief of compliance/CFO Bachelor of Economic 1990 0.1% Source: Company data

SJ1 – SEAFOOD JOINT STOCK COMPANY NO1

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008




Collections from AR N/A 173,108 199,980 Payment for AP N/A (160,470) (197,394) Payment for employees salaries N/A (12,096) (13,293) Payment for interest expense N/A (42) (58) Payment for enterprise tax N/A (616) (682) Other cash inflows from operating activities N/A 5,150 5,746 Other cash outflows from operating activities N/A (1,293) (951)

Net cash flows from (used in) operating activities N/A 3,741 (6,653) Net cash flows from (used in) investing activities N/A (1,149) (30,538) Net cash flows from (used in) financing activities N/A (3,833) 37,568 Net increase (decrease) in cash and cash equivalents N/A (1,240) 377



Operating expenses (7,253) (8,415) (9,194) EBIT 5,650 4,980 6,240 Net Interest - - -

Interest income - - - Interest expense - - -

Net Investment income (loss) 87 72 59 Net other non-op. JV+Assoc. - - - Net exceptionals 161 1,243 239 Profit (loss) before tax 5,897 6,294 6,537 Income taxes (589) (599) (711) Minority Interest - - - Net profit (loss) after tax 5,309 5,695 5,826 EBITDA 8,045 7,160 6,240 EPS basic (VND) 2,654 2,848 2,553 EPS fully diluted (VND) 2,654 2,848 2,553 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 36,137 40,988 87,068 Current Assets 29,641 35,490 80,897


Non-Current Assets 6,496 5,499 6,171 Investment properties - - - LT invesments 118 118 226 Fixed Asset 6,377 5,380 5,945 LT receivales - - - Others - - -



Non-Current Liabilities - 63 - Long term debts - - - Others - 63 -

Owners’ Equity 26,533 29,648 74,454 Paid-in capital 20,000 20,000 35,000 Reserve 7,920 9,328 8,474 Undistributed earnings 114 - 5,826 Others (1,501) 319 25,154


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 13.1% -1.6%Operating profit N/A -11.9% 24.7%EBITDA N/A -11.0% -12.9%Net profit N/A 7.3% 2.3%EPS N/A 7.3% -10.3%Profitability (%)Gross Margin 9.9% 9.1% 10.6%Operating Margin 4.3% 3.4% 4.3%EBITDA Margin 6.2% 4.8% 4.3%Net Profit Margin 4.1% 3.9% 4.0%ROA 29.4% 14.8% 9.1%ROE 40.0% 20.3% 11.2%Liquidity and SolvencyGross debt/equity (%) 36.2% 38.3% 16.9%Net debt/equity (%) 27.0% 34.2% 14.8%Int. coverage (x) N/A N/A N/ACF int. coverage (x) N/A 90.56 x -112.90 xCurrent ratio (x) 3.09 x 3.15 x 6.41 xQuick ratio (x) 0.93 x 0.77 x 3.46 xNet debt (VND'mln) 7,162 10,139 11,035 Per share data (VND)EPS basic 2,654 2,848 2,553 EPS fully diluted 2,654 2,848 2,553 CFPS 1,035 1,870 (2,916) Book value 13,267 14,824 32,628 Sales per share 65,391 73,947 63,786 EBITDA per share 4,023 3,580 2,734 DPS - - - Average O/S shares 2,000,000 2,000,000 2,281,878



Daily QFMC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QFMC.HM, Last Trade(Last)2/22/2008, 37,100Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

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Vol, QFMC.HM, Last Trade2/22/2008, 51,760

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Source: Reuter

Stock profile/ StatisticsReuter ticker FMC.HMPrice Last (VND): 22-Feb-08 37,100 52 Wk high (VND): 9-Mar-07 100,000 52 Wk low (VND): 22-Feb-08 37,100 Market capital:(mln' dongs) 255,990 Outstanding Share 6,900,000 Free float 4,700,000 Beta 1.08 3 months average daily volume 19,799 Current room for foreign investor 1,203,660 Share performance (%) YTD 1M 3M 6MAbsolute (%) -26% -7% -31% -26%Index change (%) -24% -10% -31% -24%Relative (%) -1% 3% -1% -2% Key Indicators 2005 2006 2007*Net Sales 970,807 925,197 999,764 Sales growth (%) N/A -4.7% 8.1%EPS growth (%) N/A N/A -24.2%P/E (x) N/A 7.05 x 9.30 xP/CF (x) N/A 8.36 x 9.20 xEV/EBIDA (x) N/A 6.31 x N/ADPS (VND) - 2,500 - DY (%) 0.0% 6.7% 0.0%Net gearing (%) 8.7% 0.0% 0.0%Altman Z-score N/A 6.28 3.83ROE (%) 29.0% 27.8% 16.9%BV (VND) N/A 18,900 23,653 P/BV (x) N/A 1.96 x 1.57 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesMr. Ho Quoc Luc Chairman Doctor of economics 2003 0.29%Mr. Ho Quoc Luc CEO Doctor of economics 2003 0.29%Mr. To Minh Chang Chief Accountant Bachelor of accounting 2003 0.09%Mr. Chung Thanh Tam Chief of Compliance Bachelor of accounting 2006 0.00%

Business summary

Sao Ta Food Joint Stock Company (FMC) mainly processes and exports seafood products from contracted fish farms. It also imports equipment and other materials for food processing activities. Its main products are processed raw shrimps, cooked shrimps and breaded shrimps, which are mainly exported to the United States and Japan. In 2007, 94.3% of its sales came from exports.

The Company has six processing facilities. In December 2006 it was listed on Ho Chi Minh Stock Exchange.

In 2007, the Company reported VND999.7bln (US$62.48mln) sales, up 8% from the previous year. In 2008, FMC expects revenue to grow at 9.1%, and net income to grow at 6.16%.


Most of FMC stocks are owned by the State (20%), PXP Vietnam Fund (8.5%), Vietnam Emerging Equity Fund (8%), and Ho Chi Minh City Securities Company (4.9%).

Foreigners32%

Others48%

State20%




FMC has invested in a new factory in Soc Trang to export to its primary market in Japan and to new markets in Russia and Korea. The project was started on January 2nd, 2008 and will be completed in the third quarter of 2008 with an initial investment of VND40bln (US$2.5mln).

FMC plans to build a new factory. The Company is going to obtain a 28ha land using right in the Cai Con Industrial Area to build a catfish processing factory.

FMC – SAO TA FOOD JOINT STOCK COMPANY Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 106,607 26,614 N/A

Profit (loss) before tax 29,775 31,895 N/ADepreciation & amortisation 20,262 16,854 N/AChange in working capital 63,594 (17,432) N/AOthers (7,024) (4,703) N/A

Investment CF (11,386) (18,503) N/AFinancing CF (71,201) (35,363) N/ANet increase (decrease) in cash and cash equivalents 24,020 (27,252) N/A





Net Investment income (loss) (8,351) (5,462) (8,901) Net other non-op. JV+Assoc. - - - Net exceptionals 545 3,575 160 Profit (loss) before tax 29,775 31,895 27,770 Income taxes - (314) (275) Minority Interest - - - Net profit (loss) after tax 29,775 31,581 27,495 EBITDA 57,843 50,636 N/AEPS basic (VND) N/A 5,264 3,991 EPS fully diluted (VND) N/A 5,264 3,991 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 223,331 217,845 382,816 Current Assets 129,187 139,353 279,018


Non-Current Assets 94,144 78,492 103,798 Investment properties - - - LT invesments 1,060 11,060 25,460 Fixed Asset 78,243 51,481 64,114 LT receivales - - - Others 14,841 15,951 14,224



Non-Current Liabilities 8,960 - - Long term debts 8,960 - - Others - - -

Owners’ Equity 102,521 113,399 162,944 Paid-in capital 60,000 60,000 79,000 Reserve 27,521 38,399 37,982 Undistributed earnings 15,000 15,000 11,937 Others - - 34,025


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -4.7% 8.1%Operating profit N/A -3.1% -2.5%EBITDA N/A -12.5% N/ANet profit N/A 6.1% -12.9%EPS N/A N/A -24.2%Profitability (%)Gross Margin 8.5% 8.5% 8.0%Operating Margin 3.9% 3.7% 3.7%EBITDA Margin 6.0% 5.5% N/ANet Profit Margin 3.1% 3.4% 2.8%ROA 26.7% 14.3% 9.2%ROE 58.1% 29.3% 19.9%Liquidity and SolvencyGross debt/equity (%) 117.8% 92.1% 134.9%Net debt/equity (%) 83.8% 85.3% 133.3%Int. coverage (x) 4.11 x 6.40 x N/ACF int. coverage (x) 12.62 x 6.04 x N/ACurrent ratio (x) 1.16 x 1.33 x 1.27 xQuick ratio (x) 0.65 x 0.41 x 0.50 xNet debt (VND'mln) 85,918 96,748 217,204 Per share data (VND)EPS basic N/A 5,264 3,991 EPS fully diluted N/A 5,264 3,991 CFPS N/A 4,436 4,031 Book value N/A 18,900 23,653 Sales per share N/A 154,200 145,128 EBITDA per share N/A 8,439 N/ACurrent price 37,100 37,100 37,100 Average O/S shares N/A 6,000,000 6,888,834



Daily QFBT.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QFBT.HM, Last Trade(Last)2/22/2008, 26,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

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Vol, QFBT.HM, Last Trade2/22/2008, 38,590

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16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 01 16 01 18Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Source: Reuter

Stock profile/ StatisticsReuter ticker FBT .HMPrice Last (V ND): 22-Feb-08 26,000 52 W k high (V ND): - 52 W k low (V ND): - Market capital:(mln' dongs) 390,000 O utstanding Share 15,000,000 F ree float 6,500,000 Beta N/A3 months average daily volume - C urrent room for foreign investor 6,038,795 Share performance (%) Y T D 1M 3M 6MA bsolute (% ) N/A -14% N/A N/AIndex change (% ) -24% -10% -31% -24%Relative (% ) N/A -4% N/A N/A Key Indicators 2005 2006 2007*

Net Sales 373,460 457,661 N/A

Sales growth (% ) N/A 22.5% N/A

EPS growth (% ) N/A N/A N/A

P/E (x ) N/A N/A N/A

P/C F (x) N/A N/A N/A

EV /EBIDA (x ) N/A N/A N/A

DPS (V ND) - - -

DY (% ) N/A N/A N/ANet gearing (% ) 111.7% 72.7% 29.8%

A ltman Z-score N/A N/A N/A

RO E (% ) 5.6% 15.1% 0.0%

BV (V ND) N/A N/A 10,949

P/BV (x) N/A N/A 2.56 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

FBT was listed on HOSE since January, 2008. The company specializes in shrimp breeding, farming, processing, offshore fishing and trading of frozen seafood products. The company raises shrimp and fish in their own hatchery and farms.

It has a shrimp hatchery of 500 nursing tanks, producing over 200mln post-larvae per year and a black tiger shrimp farm, producing 3,500-4,000 tons of raw shrimp per year. It also has a 50-ha basa fish farm, with capacity of 10,000 tons of basa fish per year.

The current capacity of FBT’s processing plant is 10mln of finish products per year. The company

In the first half of 2007 revenue from frozen basa fish represented 79% of total sales. Main market for its frozen shrimp and basa fish is the United States, EU and Japan. Export contributes 88.42% of total sales.


The company’s current projects include:

- Investment in a 40-ha fish farm, worth US$2.1mln, producing 2,700 tons of fish per year. Construction started in April 2007.

- Investment of US$3.4mln in a 72-ha fish farm. Upon completion total capacity of the farm will be 4,500 tons per year. Construction started in April 2007.

- Investment in eight fresh water ponds, worth US$1.4mln. The development covers over 8 ha, and construction began in April 2007.


Major holders of FBT are the State (32.83%), Vietnam Venture Ltd. (7.33%), Nguyen Van Hoang (6.91%) and Nam A Bank (6.67%).

State33%

others58%

foreigners9%

ManagementName Title Background Start date % of SharesNguyen Van Hieu Chairman&CEO Bachelor of business 1981 0.18%Ly Xuan Duc Deputy CEO Engineer 1987 0.02%Nguyen Thi Vui Chief Accountant Bachelor of business 1990 0.02%Nguyen Tuyet Mai Chief of Compliance High School 2000 0.04% Source: Company data

FBT - BEN TRE FORESTRY AND AQUAPRODUCT IMPORT EXPORT JOINT STOCK COMPANY

Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008



Financial Data C ashflow (V ND'mln) 2005 2006 2007*O perating C F (91,459) 6,021 N/A

Net profit 4,196 10,258 N/ADepreciation & amortisation 13,359 12,476 N/AC hange in working capital (109,014) (13,515) N/AO thers - (3,198) N/A

Investment C F (19,979) (20,623) N/AF inancing C F 113,497 3,412 N/A

Net increase (decrease) in cash and cash equivalents 2,059 (11,190) N/A

Income Statement (V ND'mln) 2005 2006 2007*Net Sales 373,460 457,661 N/A

C O G S (331,610) (399,209) N/AG ross profit 41,850 58,452 N/A

O perating expenses (20,519) (22,540) N/AEBIT 21,331 35,912 N/ANet Interest - - N/A

Interest income - - N/AInterest expense - - N/A

Net Investment income (loss) (17,135) (26,550) N/ANet other non-op. J V+A ssoc. - - N/ANet exceptionals - 896 N/AProfit (loss) before tax 4,196 10,258 N/AIncome taxes (179) (324) N/AMinority Interest - - N/ANet profit (loss) after tax 4,017 9,934 N/AEBIT DA 34,690 48,388 N/AEPS basic (V ND) N/A N/A N/AEPS fully diluted (V ND) N/A N/A N/A Balance Sheet (VND'mln) 2005 2006 2007*T otal A ssets 447,311 452,551 622,851 C urrent A ssets 243,583 224,144 396,166

C ash & ST investment 11,456 266 1,335 Stock & debtors 227,909 221,845 390,463 O thers 4,218 2,033 4,368

Non-C urrent A ssets 203,728 228,407 226,685 Investment properties - - - LT invesments 3,007 12,390 19,186 F ixed A sset 176,271 183,826 179,725 LT receivales - - - O thers 24,450 32,191 27,774

T otal liabilities 375,188 386,774 458,610 C urrent Liabilities 294,522 338,916 409,655

A P 22,265 18,039 17,014 ST borrowings 241,186 286,395 371,918 O thers 31,071 34,482 20,723

Non-C urrent Liabilities 80,666 47,858 48,955 Long term debts 80,571 47,819 48,940 O thers 95 39 15

O wners’ Equity 72,123 65,777 164,241 Paid-in capital 61,600 50,249 150,000 Reserve 10,523 15,528 2,888 Undistributed earnings - - 11,353 O thers - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 22.55% N/AOperating profit N/A 123.12% N/AEBITDA N/A 39.49% N/ANet profit N/A 147.30% N/AEPS N/A N/A N/AProfitability (%)Gross Margin 11% 13% N/AOperating Margin 6% 8% N/AEBITDA Margin 9% 11% N/ANet Profit Margin 1% 2% N/AROA 2% 2% N/AROE 11% 14% N/ALiquidity and solvencyGross debt/equity (%) 520.2% 588.0% 279.2%Net debt/equity (%) 504.3% 587.6% 278.4%Int. coverage (x) N/A N/A N/ACF int. coverage (x) -3.82 x 1.20 x N/ACurrent ratio (x) 0.83 x 0.66 x 0.97 xQuick ratio (x) 0.31 x 0.26 x 0.21 xNet debt (VND'mln) 363,732 386,508 457,275 Per share data (VND)EPS basic N/A N/A N/AEPS fully diluted N/A N/A N/ACFPS N/A N/A N/ABook value N/A N/A 10,949 Sales per share N/A N/A N/AEBITDA per share N/A N/A N/ADPS - - - Average O/S shares N/A N/A 15,000,000



Daily QLAF.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QLAF.HM, Last Trade(Last)2/22/2008, 35,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

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Vol, QLAF.HM, Last Trade2/22/2008, 138,190

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200,000250,000


Source: Reuters

Stock profile/ StatisticsReuter ticker LAF.HMPrice Last (VND): 22-Feb-08 35,000 52 Wk high (VND): 11-Dec-07 59,000 52 Wk low (VND): 22-Aug-07 17,100 Market capital:(mln' dongs) 202,962 Outstanding Share 5,798,901 Free float 4,300,000 Beta 1.14 3 months average daily volume 116,403 Current room for foreign investor 2,219,850 Share performance (%) YTD 1M 3M 6MAbsolute (%) -35% -15% -15% 98%Index change (%) -24% -10% -31% -24%Relative (%) -10% -5% 15% 122% Key Indicators 2005 2006 2007*Net Sales 784,550 699,904 626,503 Sales growth (%) 50.5% -10.8% -10.5%EPS growth (%) N/A -300.4% -224.8%P/E (x) 22.99 x -11.47 x 9.19 xP/CF (x) 1.98 x 1.25 x N/AEV/EBIDA (x) 11.50 x -112.71 x N/ADPS (VND) - - - DY (%) 0.0% 0.0% 0.0%Net gearing (%) 0.0% 0.0% 0.0%Altman Z-score 4.33 6.00 6.51ROE (%) 11.7% -19.0% 23.4%BV (VND) 13,069 16,092 16,244 P/BV (x) 2.68 x 2.17 x 2.15 x

Source: Reuters, Company data, Horizon Securities; (*) Unaudited Management

Name Title Background Start date % of Shares

Mr.Nguyễn Văn Chiểu Chairman/CEO Bachelor 25/02/1998 0.00%

Ms. Ho Thi Kim Ha Compliance Bachelor 0.00%

Ms. Huỳnh Thị Ngọc Mỹ Chief Accountant Bachelor of Econ 1992 0.00% Source: Company data

Business summary

Long An Food Processing Company is the largest export company in Long An province with total exports revenue of over US$50mln. Its main business line is processing and exporting foodstuff. It is also specialized in producing and trading Cashew nuts. Its Cashew nuts exports revenue was VND324bln (US$39mln). Key export markets are the USA, the EU, China and Australia with total export revenue of over VND900bln (US$50mln).

LAFOOCO has reported total revenue of VND626bln (US$39mln) and net profit of VND21.1bln (US$1.32mln). The management expects a 15% increase in revenue and 33% increase in net profit.


The State is LAFOOCO‘s largest shareholder with a 19% stake. Citigroup Market Financial Products Ltd and INCOMBANK Securities are the next largest shareholders, with 5.51% and 4.66% of respective.

State24%

others65%

foreigners

11%


Project and Investment

In 2006, LAFOOCO imported new modern equipment to increase total capacity from 25,000tons Cashew nuts per year to 40,000tons. The Company expanded its purchasing network to increase input by more than 6000tons annually. LAFOOCO has set up new offices in the EU, the USA and China to expand more market share in those markets. Current export revenue from three total main markets is over 60% of sales. LAFOOCO has built a refrigerated warehouse in Long An province with total capacity of 1000 tons.

LAF - LONG AN FOOD PROCESSING COMPANY

Market: HOSE

Sector: Food processor

HRS Equity Research

29th February 2008




Collections from AR 778,604 658,621 N/APayment for AP (605,459) (511,407) N/APayment for employees salaries (20,641) (21,965) N/APayment for interest expense (14,691) (8,447) N/APayment for enterprise tax (7,606) (1,051) N/A

Other cash inflows from operating activities

40,450 27,907 N/A

Other cash outflows from operating activities

(93,908) (22,481) N/A

Net cash flows from (used in) operating activities

76,747 121,178 N/A

Net cash flows from (used in) investing activities

2,300 1,261 N/A

Net cash flows from (used in) financing activities

(71,131) (125,733) N/A

Net increase (decrease) in cash and cash equivalents

7,917 (3,294) N/A



Operating expenses (22,200) (23,374) (21,031) EBIT 17,390 (14,139) 35,453 Net Interest (14,786) (8,447) -


Net Investment income (loss) (11,878) (1,856) (6,837) Net other non-op. JV+Assoc. - - - Net exceptionals 2,525 2,750 (3,933) Profit (loss) before tax 8,036 (13,245) 24,684 Income taxes (1,426) - (3,576) Minority Interest - - - Net profit (loss) after tax 6,610 (13,245) 21,108 EBITDA 27,620 (1,939) N/AEPS basic (VND) 1,523 (3,051) 3,808 EPS fully dilutied (VND) 1,523 (3,051) 3,808



Non-Current Assets 21,516 25,212 50,679 Investment properties - - - LT invesments - 4,497 30,490 Fixed Asset 21,516 20,715 19,530 LT receivales - - - Others - - 659



Non-Current Liabilities 504 504 535 Long term debts - - - Others 504 504 535

Owners’ Equity 56,725 69,857 90,037 Paid-in capital 38,197 57,989 57,989 Reserve 12,627 15,402 14,474 Undistributed earnings 5,106 (13,245) 7,862 Others 795 9,711 9,711


Key ratios 2005 2006 2007*Growth (%YoY)Sales 50.5% -10.8% -10.5%Operating profit -82.0% -390.2% -278.9%EBITDA N/A -107.0% N/ANet profit -71.4% -300.4% -259.4%EPS N/A -300.4% -224.8%Profitability (%)Gross Margin 5% 1% 9%Operating Margin 2% -2% 6%EBITDA Margin 4% 0% N/ANet Profit Margin 1% -2% 3%ROA 6% -7% 14%ROE 23% -21% 26%Liquidity and SolvencyGross debt/equity (%) 309.4% 105.0% 80.4%Net debt/equity (%) 291.8% 95.4% 75.1%Int. coverage (x) 1.18 x -1.67 x N/ACF int. coverage (x) 4.22 x 13.35 x #DIV/0!Current ratio (x) 1.20 x 1.62 x 1.55 xQuick ratio (x) 0.29 x 0.47 x 0.67 xNet debt (VND'mln) 165,563 66,652 67,595 Per share data (VND)EPS basic 1,523 (3,051) 3,808 EPS fully dilutied 1,523 (3,051) 3,808 CFPS 17,679 27,914 - Book value 13,069 16,092 16,244 Sales per share 180,729 161,230 113,032 EBITDA per share 6,363 (447) N/ADPS (VND) - - - Average O/S shares 4,341,040 4,341,040 5,542,690



Daily QIFS.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QIFS.HM, Last Trade(Last)2/22/2008, 28,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

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Vol, QIFS.HM, Last Trade2/22/2008, 8,710

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Source: Reuters

Stock profile/ StatisticsReuter ticker IFS.HMPrice Last (VND): 22-Feb-08 28,500 52 Wk high (VND): 13-Mar-07 55,417 52 Wk low (VND): 22-Feb-08 28,500 Market capital:(mln' dongs) 195,948 Outstanding Share 6,875,359 Free float 4,600,000 Beta 0.81 3 months average daily volume 13,357 Current room for foreign investor 1,005 Share performance (%) YTD 1M 3M 6MAbsolute (%) -24% -14% -27% -22%Index change (%) -24% -10% -31% -24%Relative (%) 0% -4% 4% 2% Key Indicators 2005 2006 2007*Net Sales 507,213 641,686 723,272 Sales growth (%) N/A 26.5% 12.7%EPS growth (%) N/A -2.5% 22.0%P/E (x) 14.70 x 15.07 x 12.36 xP/CF (x) -44.23 x -14.95 x 3.95 xEV/EBIDA (x) 13.06 x 12.18 x 12.48 xDPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) 15.0% 0.0% 0.0%Altman Z-score 2.68 4.17 2.10ROE (%) 24.3% 15.0% 17.9%BV (VND) 8,636 13,653 13,899 P/BV (x) 3.57 x 2.26 x 2.22 x Source:Reuters, Company data, Horizon Securities; (*) Unaudited ManagementName Title Background Start date % of SharesPang Tee Chiang Chairman/CEO Diploma 1991 19.04%Nguyễn Thị Kim Liên Board member/ CFO Bachelor 1992 0.07%Thái Ngọc Đình Compliance Bachelor 0.00%

Business summary

INTERFOOD Shareholding Company is a foreign direct investment (FDI) company engaged in the food processing sector. In October 2006, INTERFOOD became third FDI company listed on HOSE. The company specializes in processing agricultural and seafood canned products; producing carbonated fruit drinks, low alcohol level fruit drink (5%), and pure bottled drinking water. Besides, it also produces PET bottles to meet the company’s production demand. As of December 31, 2006, domestic sales contributed 63.79% of total revenue.

The company main canned beverage products contribute about 80% to the revenue. Total revenue of INTERFOOD in 2007 was VND723bln (US$45mln). INTERFOOD plans 2008 to reach VND 1,140bln (US$72mln). Its net profit is planned to increase 11.4% after 2008.


The Trade Ocean holding Sdn.Bhd is INTERFOOD‘s largest shareholder with a 57.25% stake. Mr Pang Tee Chiang is the second largest shareholder with 19.04% of stake. Total foreign ownership is 82% of stake as of 2007. Its Board comprises 5 members, including chairman Mr. Pang Tee Chiang.

foreigners82%

others18%



Project and Investment

The company will contribute its capital to set up a new shareholding company in northern Vietnam with 90% share of capital from INTERFOOD Shareholding Company.

The Company set up a new packaging company in Southern Vietnam to supply the packaging demand of the group (total investment US$32mln). INTERFOOD has acquired Ava Industrial Food Corporation for a total investment of VN14.5bln (US$900,000).

The Company is establishing a new subsidiary in Northern with total capital of US$3mln.

These investments help INTERFOOD to increase its revenue more than 50%.

IFS - INTERFOOD SHAREHOLDING COMPANY

Market: HOSE


HRS Equity Research

29th February 2008



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 75,448 94,553 227,415 Profit (loss) before tax 59,813 73,918 79,135 Depreciation & amortisation 15,635 20,635 21,865 Change in working capital N/A N/A 126,415 Others - - - Investment CF (55,363) (38,835) (392,258) Financing CF 69,416 99,180 166,143 Net increase (decrease) in cash and cash equivalents

(2,859) 324 1,300





Net Investment income (loss) (8,458) (5,199) (9,490) Net other non-op. JV+Assoc. - - - Net exceptionals 358 7,754 1,817 Profit (loss) before tax 59,813 73,918 79,135 Income taxes (8,939) (14,376) (6,507) Minority Interest - - - Net profit (loss) after tax 50,874 59,542 72,628 EBITDA 83,548 91,998 108,673 EPS basic (VND) 2,095 2,043 2,492 EPS fully dilutied (VND) 2,095 2,043 2,492 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 556,172 624,894 870,215 Current Assets 348,204 395,726 263,386


Non-Current Assets 207,968 229,168 606,829 Investment properties - - - LT invesments - - 338,455 Fixed Asset 207,968 229,168 268,374 LT receivales - - - Others - - -



Non-Current Liabilities 32,184 1,075 1,461 Long term debts 31,404 - - Others 780 1,075 1,461

Owners’ Equity 209,729 393,671 405,020 Paid-in capital 206,336 242,842 291,410 Reserve - - - Undistributed earnings 3,393 37,203 44,119 Others - 113,626 69,491


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 26.5% 12.7%Operating profit N/A 11.3% 16.9%EBITDA N/A 10.1% 18.1%Net profit N/A 17.0% 22.0%EPS N/A -2.5% 22.0%Profitability (%)Gross Margin 22.2% 19.5% 21.2%Operating Margin 13.4% 11.1% 12.0%EBITDA Margin 16.5% 14.3% 15.0%Net Profit Margin 10.0% 9.3% 10.0%ROA 18.3% 10.1% 9.7%ROE 48.5% 19.6% 18.1%Liquidity and SolvencyGross debt/equity (%) 165.2% 57.1% 114.9%Net debt/equity (%) 163.6% 56.2% 113.2%Int. coverage (x) 9.37 6.04 5.70CF int. coverage (x) -1.33 -4.08 15.93Current ratio (x) 1.11 1.75 0.57Quick ratio (x) 0.73 0.94 0.22Net debt (VND'mln) 343,194 223,411 458,513 Per share data (VND)EPS basic 2,095 2,043 2,492 EPS fully dilutied 2,095 2,043 2,492 CFPS (696) (2,060) 7,804 Book value 8,636 13,653 13,899 Sales per share 20,885 22,020 24,820 EBITDA per share 3,440 3,157 3,729 DPS (VND) N/A N/A N/AO/S shares 24,286,239 29,140,992 29,140,992



Daily QSGC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSGC.HM, Last Trade(Last)2/22/2008, 47,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QSGC.HM, Last Trade2/22/2008, 3,550

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Source: Reuters

Stock profile/ StatisticsReuter ticker SG C .HMPrice Last (VND): 22-Feb-08 47,500 52 W k high (V ND): 12-Mar-07 70,500 52 W k low (VND): 5-Sep-07 40,000 Market capital:(mln' dongs) 194,213 O utstanding Share 4,088,700 F ree float - Beta 0.71 3 months average daily volume 12,969 C urrent room for foreign investor 1,810,583 Share performance (%) Y T D 1M 3M 6MAbsolute (% ) -17% -8% -19% 14%Index change (% ) -24% -10% -31% -24%Relative (% ) 7% 2% 11% 38% Key Indicators 2005 2006 2007*Net Sales 98,100 88,489 118,917 Sales growth (% ) N/A -9.8% 34.4%EPS growth (% ) N/A 16.0% 5.7%P/E (x ) 12.53 x 10.80 x 10.22 xP/C F (x) 21.83 x 6.75 x N/AEV /EBIDA (x ) 12.76 x 10.69 x 10.96 xDPS (V ND) N/A 3,000 1,200 DY (% ) N/A 6.3% 2.5%Net gearing (% ) 6.8% 3.1% N/AA ltman Z-score 9.50 11.83 14.64RO E (% ) 28.0% 27.4% 25.8%BV (V ND) 13,538 16,028 18,034 P/BV (x) 3.51 x 2.96 x 2.63 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Sa Giang Import Export Corporation produces and processes food, including seafood products, meat, wheat flour, and rice flour.

Headquartered in Dong Thap Province, the Company has two deep fried shrimp paste production plants with total capacity is about 3300 tons/year and one other food production plant.

It has one branch in Ho Chi Minh City

Sa Giang mainly produces deep fried shrimp paste which typically over 95%, export markets EU with 77.89% revenue and domestic market is 22.11%.

Management’s target is VND147bln (US$9.18mln) in revenue in 2008.


Major holders of SGC stocks are the State (51%).

foreigners5%

others49%

State46%

ManagementName Title Background Start date % of Shares

Mr. Nguyen Trung Dan Chairman/CEO MBA 1994 1.21%

Mr. Mai Hoang Tam CFO Bachelor 2002 0.31%

Mr. Dang Thanh Buu Chief of Compliance BBA 1989 0.49%



Sa Giang began construction of stage 2 of its deep fried shrimp production plant with capacity will increase from 3500 tons to 5000 tons per year. Construction is set to be completed in 2008.

SGC – SA GIANG IMPORT EXPORT CORPORATION

Market: HOSE


HRS Equity Research

29th February 2008



Financial Data C ashflow (V ND'mln) 2005 2006 2007*

C ollections from A R 94,078 91,922 N/APayment for employees salaries (10,106) (14,557) N/APayment for interest expense (350) (229) N/APayment for enterprise tax (1,002) - N/AO ther cash inflows from operating activ ities 5,852 12,682 N/AO ther cash outflows from operating activ ities (16,397) (12,569) N/A

Net cash flows from (used in) operating activ ities 8,899 28,769 N/ANet cash flows from (used in) investing activ ities (306) (9,500) N/ANet cash flows from (used in) financing activ ities (4,955) (12,445) N/ANet increase (decrease) in cash and cash equivalents 3,638 6,824 N/A



Operating expenses (6,509) (6,707) (7,985) EBIT 15,013 16,840 17,671 Net Interest (350) (229) -

Interest income - - - Interest expense (350) (229) -

Net Investment income (loss) 190 879 894 Net other non-op. JV+Assoc. - - - Net exceptionals 297 263 1,209 Profit (loss) before tax 15,500 17,981 19,773 Income taxes - - (775) Minority Interest - - - Net profit (loss) after tax 15,500 17,981 18,998 EBITDA 15,013 16,840 17,671 EPS basic (VND) 3,791 4,398 4,646 EPS fully diluted (VND) 3,791 4,398 4,646



Non-Current Assets 25,699 24,511 29,438 Investment properties - - - LT invesments 1,320 1,320 1,320 Fixed Asset 24,379 23,191 28,118 LT receivales - - - Others - - -


AP 714 971 - ST borrowings 1,749 1,749 9,527 Others 11,048 7,994 -

Non-Current Liabilities 3,853 2,112 425 Long term debts 3,769 2,019 - Others 84 93 425

Owners’ Equity 55,354 65,533 73,737 Paid-in capital 40,887 40,887 40,887 Reserve 2,823 9,968 21,510 Undistributed earnings 11,643 14,678 11,340 Others - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A -9.8% 34.4%Operating profit N/A 16.5% 4.8%EBITDA N/A 12.2% 4.9%Net profit N/A 16.0% 5.7%EPS N/A 16.0% 5.7%Profitability (%)Gross Margin 21.9% 26.6% 21.6%Operating Margin 15.3% 19.0% 14.9%EBITDA Margin 15.3% 19.0% 14.9%Net Profit Margin 15.8% 20.3% 16.0%ROA 42.6% 23.8% 23.4%ROE 56.0% 29.7% 27.3%Liquidity and solvencyGross debt/equity (%) 31.4% 19.6% 13.5%Net debt/equity (%) -4.7% -21.6% -0.7%Int. coverage (x) 42.84 x 73.58 x N/ACF int. coverage (x) 26.40 x 126.70 x N/ACurrent ratio (x) 3.48 x 5.03 x 5.69 xQuick ratio (x) 2.67 x 4.20 x 4.13 xNet debt (VND'mln) (2,620) (14,150) (520) Per share data (VND)EPS basic 3,791 4,398 4,646 EPS fully diluted 3,791 4,398 4,646 CFPS 2,176 7,036 - Book value 13,538 16,028 18,034 Sales per share 23,993 21,642 29,084 EBITDA per share 3,672 4,119 4,322 DPS - 3,000 1,200 Average O/S shares 4,088,700 4,088,700 4,088,700



SAF – SAFOCO FOODSTUFF JOINT STOCK COMPANY Market: HOSE


HRS Equity Research

29th February 2008

Daily QSAF.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSAF.HM, Last Trade(Last)2/22/2008, 40,800Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QSAF.HM, Last Trade2/22/2008, 2,420

VolumeVND

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Source: Reuters

Stock profile/ StatisticsReuter ticker SAF.HMPrice Last (VND): 22-Feb-08 40,800 52 Wk high (VND): 12-Mar-07 62,000 52 Wk low (VND): 2-May-07 35,600 Market capital:(mln' dongs) 110,405 Outstanding Share 2,706,000 Free float 1,100,000 Beta N/A3 months average daily volume 10,045 Current room for foreign investor 1,313,240 Share performance (%) YTD 1M 3M 6MAbsolute (%) -26% -22% -24% 2%Index change (%) -24% -10% -31% -24%Relative (%) -1% -12% 6% 26% Key Indicators 2005 2006 2007*Net Sales 203,970 272,065 333,205 Sales growth (%) N/A N/A 22.5%EPS growth (%) N/A N/A 20.0%P/E (x) N/A 12.21 x 10.17 xP/CF (x) N/A 14.69 x 18.64 xEV/EBIDA (x) N/A 10.77 x N/ADPS (VND) 1,500 1,200 - DY (%) 3.7% 2.9% 0.0%Net gearing (%) 0.0% 0.6% 0.6%Altman Z-score N/A 9.44 7.73ROE (%) 0.0% 23.6% 24.7%BV (VND) 13,511 14,161 16,242 P/BV (x) 3.02 x 2.88 x 2.51 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

SAF invested VND19bln (US$1.19mln) to build a new factory and to upgrade its current plants. The company has been certified to ISO 9001:2000.

It also has commenced the construction of an office building at 430 Tran Van Kieu Street, Ho Chi Minh City with an investment of VND29bln (US$1.8mln).

SAL has expanded its Hoa Vien Nam Bo restaurant at 49/1 Hoa Binh Street, Ho Chi Minh City with an investment of VND8bln (US$0.5mln).

Business summary

Safoco Foodstuff JSC was established in 1995 and has been listed on HOSE since December 2006.

The company has more than 200 distributors and agents across the country. It principally manufactures noodles, vermicellis, griddlecakes, and other starch products. Around 34% of revenue is generated from noodle export. In 2007, Safoco reached sales of VND333.2bln (US$20.8mln) and net profit of VND10.85bln (US$0.67mln), up 22.5% and 20% compared to 2006.


Major holders are Vina Southern Food Corp. (VinaFood) (77.1%) and Mr. Tran Dang Minh (11.3%).

State52%

Others48%

Foreigners0.47%

ManagementName Title Background Start date % of SharesMs. Pham Thi Thu Hong Chairman/CEO Bachelor of Business 1998 2.67%Ms. Nguyen Thi Nga Chief of Accountance Bachelor 2002 0.86%Mr. Vo Truong Hung Chief of Compliance Bachelor of Finance 1989 0.00% Source: Company data




Collections from AR N/A N/A 353,479 Payment for AP N/A N/A (321,907) Payment for employees salaries N/A N/A (19,971) Payment for interest expense N/A N/A (60) Payment for enterprise tax N/A N/A - Other cash inflows from operating activities N/A N/A 29 Other cash outflows from operating activities N/A N/A (5,646)

Net cash flows from (used in) operating activities N/A N/A 5,924 Net cash flows from (used in) investing activities N/A N/A (1,212) Net cash flows from (used in) financing activities N/A N/A (1,600) Net increase (decrease) in cash and cash equivalents N/A N/A 3,112


COGS N/A (255,179) (313,289) Gross profit N/A 16,885 19,916

Operating expenses N/A (8,474) (9,487) EBIT N/A 8,411 10,429 Net Interest N/A (124) -

Interest income N/A - - Interest expense N/A (124) -

Net Investment income (loss) N/A 535 285 Net other non-op. JV+Assoc. N/A - - Net exceptionals N/A 94 138 Profit (loss) before tax N/A 9,040 10,852 Income taxes N/A - - Minority Interest N/A - - Net profit (loss) after tax N/A 9,040 10,852 EBITDA N/A 11,454 N/AEPS basic (VND) N/A 3,341 4,010 EPS fully diluted (VND) N/A 3,341 4,010


Cash & ST investment 2,942 5,683 8,777 Stock & debtors 28,659 33,232 50,970 Others - 210 14

Non-Current Assets 16,567 17,818 14,808 Investment properties - - - LT invesments - - 0 Fixed Asset 16,553 17,818 14,808 LT receivales - - - Others 14 - -



Non-Current Liabilities 20 292 345 Long term debts - 236 244 Others 20 56 101

Owners’ Equity 27,021 38,318 43,952 Paid-in capital 22,000 28,751 28,751 Reserve - 429 4,207 Undistributed earnings 5,021 9,097 10,953 Others - 40 40


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A N/A 22.5%Operating profit N/A N/A 19.8%EBITDA N/A N/A N/ANet profit N/A N/A 20.0%EPS N/A N/A 20.0%Profitability (%)Gross Margin N/A 6.2% 6.0%Operating Margin N/A 3.1% 3.1%EBITDA Margin N/A 4.2% N/ANet Profit Margin N/A 3.3% 3.3%ROA N/A 17.2% 16.5%ROE N/A 27.7% 26.4%Liquidity and SolvencyGross debt/equity (%) 78.3% 48.6% 69.7%Net debt/equity (%) 67.4% 33.8% 49.7%Int. coverage (x) N/A 67.58 x N/ACF int. coverage (x) N/A 61.40 x 99.74 xCurrent ratio (x) 1.50 x 2.13 x 1.97 xQuick ratio (x) 0.86 x 1.27 x 1.13 xNet debt (VND'mln) 18,205 12,942 21,841 Per share data (VND)EPS basic N/A 3,341 4,010 EPS fully diluted N/A 3,341 4,010 CFPS N/A 2,778 2,189 Book value 13,511 14,161 16,242 Sales per share N/A 100,541 123,136 EBITDA per share N/A 4,233 N/ADPS 1,500 1,200 N/AAverage O/S shares 2,000,000 2,706,000 2,706,000



CAN- HALONG CANNED FOOD JOINT STOCK CORPORATION

Market: HOSE


HRS Equity Research

29th February 2008

Daily QCAN.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QCAN.HM, Last Trade(Last)2/22/2008, 21,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

020,000

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Vol, QCAN.HM, Last Trade2/22/2008, 18,870

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Source: Reuter

Stock profile/ StatisticsReuter ticker CAN.HMPrice Last (VND): 22-Feb-08 21,000 52 Wk high (VND): 14-Mar-07 47,000 52 Wk low (VND): 21-Feb-08 21,000 Market capital:(mln' dongs) 105,000 Outstanding Share 5,000,000 Free float 3,600,000 Beta 0.96 3 months average daily volume 23,539 Current room for foreign investor 1,092,900 Share performance (%) YTD 1M 3M 6MAbsolute (%) -20% -8% -25% -22%Index change (%) -24% -10% -31% -24%Relative (%) 5% 2% 6% 2% Key Indicators 2005 2006 2007*Net Sales 191,255 204,206 309,086 Sales growth (%) N/A 6.8% 51.4%EPS growth (%) N/A N/A -2.4%P/E (x) N/A 3.96 x 4.88 xP/CF (x) N/A N/A N/AEV/EBIDA (x) 1.18 x 6.39 x 7.36 xDPS (VND) N/A 1,300 500 DY (%) N/A 6.2% 2.4%Net gearing (%) 19.7% 20.1% 14.2%Altman Z-score N/A 4.11 4.21ROE (%) 14.9% 16.0% 12.3%BV (VND) N/A 13,145 16,696 P/BV (x) N/A 1.60 x 1.26 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Halong Canned Food Stock Corporation, CANFOCO, became a joint stock company in March 1999 and after two years; in October 2001 CAN was officially listed on HOSE.

The company’s main businesses include producing canned food products, by-product from seaweed and natural materials such as cod-liver oil. CAN’s revenue in 2007 was VND309bln (US$19.3mln), in which approximately 60% come from canned food products. Thanks to new project and investment, CANFOCO expects total revenue in 2008 of VND300mln (US$18mln) and the net income of VND12bln (US$750,000).


Vietnam Seafood Company is CAN’s largest shareholder with 30.65% stake. Other major shareholders are Bale Strand Limited (15.78%), Gold Church Limited (7.65%) and Prudential Vietnam (5.57%).

State28%

others45%

foreigners27%


ManagementName Title Background Start date % of SharesPhan Minh Tuan Chairman MBATran Xuan My CEO MBA 2005Phan Hai Nam Chief of compliance BA 2006 4.29%Tran Thi Thu Huong Chief of accoutant BA 1989 Source: Company data


In 2007, The company launched its new projects with a total investment of VND35bln (US$2.18mil) such as:

• Constructing new product line with modern equipment

• Setting up Frozen warehouse system in Hai Phong

• Building new seafood processing factory in Hai Phong with capacity of 15 millions can per year



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 22,658 (1,376) 6,025

Profit (loss) before tax 9,794 10,296 12,382 Depreciation & amortisation 6,294 5,532 5,571 Change in working capital 915 (12,823) (10,745) Others 5,656 (4,381) (1,182)

Investment CF (2,552) (3,444) (13,851) Financing CF (11,878) 1,205 6,565 Net increase (decrease) in cash and cash equivalents 8,228 (3,615) (1,261)



Operating expenses (26,340) (31,500) (38,227) EBIT 10,647 11,289 13,074 Net Interest (498) (929) (797)

Interest income - - - Interest expense (498) (929) (797)

Net Investment income (loss) (499) (1,573) (611) Net other non-op. JV+Assoc. - - - Net exceptionals (355) 580 (80) Profit (loss) before tax 9,794 10,296 12,382 Income taxes (2,448) (1,965) (2,364) Minority Interest - - - Net profit (loss) after tax 7,345 8,331 10,018 EBITDA 16,941 16,821 18,644 EPS basic (VND) N/A 2,102 2,053 EPS fully diluted (VND) N/A 2,102 2,053 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 82,062 85,594 124,236 Current Assets 61,563 65,227 93,704

Cash & ST investment 12,861 9,246 18,947 Stock & debtors 47,912 55,134 74,031 Others 790 847 726

Non-Current Assets 20,499 20,367 30,532 Investment properties - - - LT invesments 498 - - Fixed Asset 17,070 17,296 30,442 LT receivales - - - Others 2,931 3,070 90



Non-Current Liabilities 9,688 10,487 11,602 Long term debts 9,688 10,487 11,602 Others - - -

Owners’ Equity 50,240 53,138 82,205 Paid-in capital 35,000 35,000 50,000 Reserve 2,108 4,024 4,480 Undistributed earnings 7,280 7,831 9,818 Others 5,852 6,283 17,907


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 6.8% 51.4%Operating profit N/A -4.3% 28.3%EBITDA N/A -0.7% 10.8%Net profit N/A 13.4% 20.2%EPS N/A N/A -2.4%Profitability (%)Gross Margin 19.3% 21.0% 16.6%Operating Margin 5.6% 5.5% 4.2%EBITDA Margin 8.9% 8.2% 6.0%Net Profit Margin 3.8% 4.1% 3.2%ROA 17.9% 9.9% 9.5%ROE 29.9% 16.4% 15.0%Liquidity and solvencyGross debt/equity (%) 66.8% 64.3% 52.5%Net debt/equity (%) 40.6% 46.5% 42.7%Int. coverage (x) 21.40 x 12.15 x 16.39 xCF int. coverage (x) 46.54 x -0.48 x 9.25 xCurrent ratio (x) 2.66 x 2.84 x 3.01 xQuick ratio (x) 1.20 x 1.16 x 1.43 xNet debt (VND'mln) 19,990 24,249 34,763 Per share data (VND)EPS basic N/A 2,102 2,053 EPS fully diluted N/A 2,102 2,053 CFPS N/A - - Book value N/A 13,145 16,696 Sales per share N/A 51,525 63,330 EBITDA per share N/A 4,244 3,820 DPS - 1,300 500 Averaged O/S shares - 3,963,264 4,880,598



TAC – TUONG AN VEGETABLE OIL JOINT STOCK COMPANY

Market: HOSE

Sector: Oil cooking

HRS Equity Research

29th February 2008

Daily QTAC.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QTAC.HM, Last Trade(Last)2/22/2008, 113,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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Vol, QTAC.HM, Last Trade2/22/2008, 44,220

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Source: Reuters

Stock profile/ StatisticsReuter ticker TAC.HMPrice Last (VND): 22-Feb-08 113,000 52 Wk high (VND): 9-Oct-07 186,000 52 Wk low (VND): 17-Apr-07 52,500 Market capital:(mln' dongs) 2,134,593 Outstanding Share 18,890,200 Free float 4,600,000 Beta 0.92 3 months average daily volume 71,061 Current room for foreign investor 3,882,798 Share performance (%) YTD 1M 3M 6MAbsolute (%) -8% 3% -16% -9%Index change (%) -24% -10% -31% -24%Relative (%) 16% 13% 14% 15% Key Indicators 2005 2006 2007*Net Sales 1,181,594 1,515,469 2,554,229 Sales growth (%) N/A 28.3% 68.5%EPS growth (%) N/A N/A 175.1%P/E (x) N/A 46.94 x 17.06 xP/CF (x) N/A 34.36 x 15.62 xEV/EBIDA (x) 3.95 x 54.33 x 19.72 xDPS (VND) N/A 1,200 1,500 DY (%) N/A 1.1% 1.3%Net gearing (%) 5.9% 12.0% 0.0%Altman Z-score N/A 7.56 6.59ROE (%) 16.6% 17.3% 34.8%BV (VND) N/A 13,915 19,043 P/BV (x) N/A 8.12 x 5.93 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Tuong An Vegetable Oil JSC was established in 1977. It was equitized in 2004 and listed on HOSE two years later. The company imports 90% of raw materials and mainly manufactures cooking oil from oilseeds and animal fats. The company is a subsidiary of the National Company for Vegetable Oils, Aromas and Cosmetics of Vietnam, and has two processing factories. The capacity is 130,000 tons per year.

In 2007, the company reported revenue of VND2,556bln (US$159.75mln), up 68.5% compared to 2006 and net income of VND125.7bln (US$7.85mln), up 175%.

Ownership & major shareholders

Major holders are Vocarimex Co. (51%), J.P. Morgan Whitefriars INC. (7.37%), Jaccar Capital Fund Ltd (6.01%), and Amersham Industries Ltd (5.93%).

Foreigners29%

Others20%

State51%


ManagementName Title Background Start date % of SharesMr. Doan Tan Nghiep Chairman Engineer Oct-04 0.55%Ms. Huynh Tan Phuong Mai CEO Bachelor of Economic Oct-04 0.64%Ms. Nguyen Thi Phuong Nga Chief of Compliance Bachelor of Economic Oct-04 0.04% Source: Company data


The company continues to invest in Phu My Oil factory in Phu My 1 industrial park in Ba Ria Vung Tau. The total investment for this project is more than VND330bln (US$20.6mln).

The company is using the new splitting oil line to increase the capacity to 400 tons per day.



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF (16,108) 62,421 N/AProfit (loss) before tax 40,080 45,693 125,712

Depreciation & amortisation 14,031 13,705 11,609 Change in working capital (69,233) 3,678 N/AOthers (986) (656) N/A

Investment CF (200,499) 15,379 N/AFinancing CF (6,961) (5,178) N/ANet increase (decrease) in cash and cash equivalents (223,568) 72,622 137,321


COGS (1,053,047) (1,381,676) (2,342,189) Gross profit 128,547 133,793 212,040

Operating expenses (106,214) (104,926) (109,250) EBIT 22,333 28,868 102,790 Net Interest - (440) -

Interest income - - - Interest expense - (440) -

Net Investment income (loss) 17,216 15,428 22,440 Net other non-op. JV+Assoc. - - - Net exceptionals 531 1,397 482 Profit (loss) before tax 40,080 45,693 125,712 Income taxes - - - Minority Interest - - - Net profit (loss) after tax 40,080 45,693 125,712 EBITDA 36,364 42,573 114,399 EPS basic (VND) N/A 2,407 6,623 EPS fully diluted (VND) N/A 2,407 6,623 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 427,828 547,409 837,061 Current Assets 324,770 263,111 601,396


Non-Current Assets 103,058 284,298 235,665 Investment properties - - - LT invesments 1,376 131,984 1,984 Fixed Asset 101,682 152,314 225,499 LT receivales - - - Others - - 8,182


AP 110,769 187,985 - ST borrowings - - 372,170 Others 61,282 63,417 -

Non-Current Liabilities 14,242 31,902 103,451 Long term debts 14,179 31,775 - Others 63 127 103,451

Owners’ Equity 241,535 264,105 361,440 Paid-in capital 189,802 189,802 189,802 Reserve 25,478 44,506 93,449 Undistributed earnings 26,255 29,798 78,189 Others - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 28.3% 68.5%Operating profit N/A 12.0% 182.7%EBITDA N/A 17.1% 168.7%Net profit N/A 14.0% 175.1%EPS N/A N/A 175.1%Profitability (%)Gross Margin 10.9% 8.8% 8.3%Operating Margin 1.9% 1.9% 4.0%EBITDA Margin 3.1% 2.8% 4.5%Net Profit Margin 3.4% 3.0% 4.9%ROA 18.7% 9.4% 18.2%ROE 33.2% 18.1% 40.2%Liquidity and SolvencyGross debt/equity (%) 77.1% 107.3% 131.6%Net debt/equity (%) 59.5% 63.6% 30.8%Int. coverage (x) N/A 65.56 x N/ACF int. coverage (x) N/A 142.77 x N/ACurrent ratio (x) 1.89 x 1.05 x 1.62 xQuick ratio (x) 1.42 x 0.57 x 1.19 xNet debt (VND'mln) 143,722 168,025 111,393 Per share data (VND)EPS basic N/A 2,407 6,623 EPS fully diluted N/A 2,407 6,623 CFPS N/A 3,289 7,235 Book value N/A 13,915 19,043 Sales per share N/A 79,845 134,573 EBITDA per share N/A 2,243 6,027 DPS N/A 1,200 1,500 Average O/S shares N/A 18,980,200 18,980,200



LSS –LAMSON SUGAR JOINT STOCK CORPORATION Market: HOSE

Sector: Sugar

HRS Equity Research

29th February 2008

Daily QLSS.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QLSS.HM, Last Trade(Last)2/22/2008, 30,000Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

029,00030,000

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PriceVND

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Vol, QLSS.HM, Last Trade2/22/2008, 46,300

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16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 01 16 01Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008

Source: Reuter

Stock profile/ StatisticsReuter ticker L SS.HMPrice Last (VND): 22-Feb-08 30,000 52 W k high (V ND): - 52 W k low (VND): - Market capital:(mln' dongs) 900,000 O utstanding Share 30,000,000 F ree float - Beta N/A3 months average daily volume - C urrent room for foreign investor 14,688,400 Share performance (%) Y T D 1M 3M 6MAbsolute (% ) N/A -8% N/A N/AIndex change (% ) -24% -10% -31% -24%Relative (% ) N/A 2% N/A N/A

Business summary

Lam Son JSC grows sugar canes and processes 10.13% of the national sugar production. Together, its two processing facilities have a capacity of 7,000 TMN.

The company’s main market is Vietnam. Where it has over 500 retailers and wholesalers.

LSS was listed on HOSE since December 2007.

In 2007, net revenue increased 35.56% and net profit before tax increased 34.36%.

Key Indicators 2006 2007*Net Sales 626,661 813,958 Sales growth (% ) N/A 29.9%EPS growth (% ) N/A 24.6%P/E (x) 13.44 x 10.78 xP/C F (x ) 28.75 x 5.13 xEV /EBIDA (x ) 5.37 x 5.56 xDPS (V ND) N/A N/ADY (% ) N/A N/ANet gearing (% ) 29.7% 17.3%A ltman Z-score 3.43 4.09RO E (% ) 13.0% 13.0%BV (V ND) 17,124 21,335 P/BV (x ) 1.75 x 1.41 x

Source: Reuters, Company data, Horizon Securities; (*) Unaudited Projects and investments

LSS plans to invest in raising dairy cattle , constructing Lam Son cultural and sport zone, building representative office in Ho Chi Minh City.

It keeps on building feasible project and to widen and upgrade the second sugar manufacture capacity to 4,000TMN, cattle-feed manufacture (5,000 tons per year).

Management also announced its intention to expand into banking and insurance sector as well as the education sector.


Their major share holders are Vietnam General Corporation of Sugar (12.24%), Sacombank (9.37%), Lam Son Milk Joint Stock Company (8.5%).

Lam Son Milk9%

others70%

Sacombank9%

State12%

ManagementName Title Background Start date % of SharesMr. Le Van Tam Chairman Bachelor of Economic Aug-02 0.45%Mr. Le Van Thanh CEO Engineer Sep-94 0.19%Ms. Le Thi Tien Chief of Compliance Bachelor of Economic Dec-89 0.14%Ms. Le Thi Hue Chief accountant Bachelor of Economic Nov-93 0.07% Source: Company data



Financial Data Cashflow (VND'mln) 2006 2007*Operating CF 30,596 173,144

Pofit (loss) before tax 74,424 112,307 Depreciation & amortisation 83,239 59,073 Change in working capital (127,067) N/AOthers - 1,764

Investment CF 48,818 (198,387) Financing CF 16,186 32,353 Net increase (decrease) in cash and cash equivalents 95,600 5,457

Income Statement (VND'mln) 2006 2007*Net Sales 626,661 813,958

COGS (472,453) (658,635) Gross profit 154,208 155,323

Operating expenses (38,490) (36,518) EBIT 115,718 118,805 Net Interest (18,900) (8,110)

Interest income - - Interest expense (18,900) (8,110)

Net Investment income (loss) (38,332) 6,105 Net other non-op. JV+Assoc. - - Net exceptionals (2,962) (12,603) Profit (loss) before tax 74,424 112,307 Income taxes (8,968) (30,738) Minority Interest - - Net profit (loss) after tax 65,456 81,569 EBITDA 198,957 177,878 EPS basic (VND) 2,232 2,782 EPS fully diluted (VND) 2,232 2,782 Balance Sheet (VND'mln) 2006 2007*Total Assets 817,394 869,251 Current Assets 451,194 432,303

Cash & ST investment 214,496 229,133 Stock & debtors 223,058 192,320 Others 13,640 10,850

Non-Current Assets 366,200 436,948 Investment properties - - LT invesments 92,139 246,738 Fixed Asset 271,981 187,991 LT receivales 142 95 Others 1,938 2,124

Total liabilities 315,323 243,719 Current Liabilities 165,378 135,063

AP 58,472 65,338 ST borrowings 2,613 2,100 Others 104,293 67,625

Non-Current Liabilities 149,945 108,656 Long term debts 149,135 108,095 Others 810 561

Owners’ Equity 502,071 625,532 Paid-in capital 260,000 300,000 Reserve 105,981 128,074 Undistributed earnings 65,569 82,463 Others 70,521 114,995


Key ratios 2006 2007*Growth (%YoY)Sales N/A 29.9%Operating profit N/A 61.4%EBITDA N/A -10.6%Net profit N/A 24.6%EPS N/A 24.6%Profitability (%)Gross Margin 18.5% 14.6%Operating Margin 18.5% 14.6%EBITDA Margin 31.7% 21.9%Net Profit Margin 10.4% 10.0%ROA 16.0% 9.7%ROE 26.1% 14.5%Liquidity and sovencyGross debt/equity (%) 62.8% 39.0%Net debt/equity (%) 37.4% 17.5%Int. coverage (x) 6.12 x 14.65 xCF int. coverage (x) 2.62 x 22.15 xCurrent ratio (x) 2.73 x 3.20 xQuick ratio (x) 2.01 x 2.67 xNet debt (VND'mln) 187,827 109,519 Per share data (VND)EPS basic 2,232 2,782 EPS fully diluted 2,232 2,782 CFPS 1,044 5,849 Book value 17,124 21,335 Sales per share 21,373 27,762 EBITDA per share 6,786 6,067 DPS - - Average O/S shares 29,319,637 29,319,637



BHS – BIEN HOA SUGAR JOINT STOCK COMPANY Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008

Daily QBHS.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QBHS.HM, Last Trade(Last)2/22/2008, 36,500Line, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

035,000

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PriceVND

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Vol, QBHS.HM, Last Trade2/22/2008, 15,550

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Source: Reuter

Stock profile/ StatisticsReuter ticker BHS.HMPrice Last (VND): 22-Feb-08 36,500 52 Wk high (VND): 13-Mar-07 65,385 52 Wk low (VND): 22-Feb-08 36,500 Market capital:(mln' dongs) 614,942 Outstanding Share 16,847,727 Free float 11,100,000 Beta 0.93 3 months average daily volume 51,056 Current room for foreign investor 5,037,730 Share performance (%) YTD 1M 3M 6MAbsolute (%) -27% -9% -30% -14%Index change (%) -24% -10% -31% -24%Relative (%) -3% 1% 0% 10% Key Indicators 2005 2006 2007*Net Sales 540,656 766,123 643,945 Sales growth (%) N/A 41.7% -15.9%EPS growth (%) N/A N/A -45.6%P/E (x) N/A 6.23 x 11.47 xP/CF (x) N/A 1.76 x 68.56 xEV/EBIDA (x) N/A N/A N/ADPS (VND) 2,000 600 800 DY (%) 5.5% 1.6% 2.2%Net gearing (%) 153.2% 45.5% 48.8%Altman Z-score N/A 3.03 3.01ROE (%) 30.6% 13.4% 14.1%BV (VND) N/A 43,689 22,578 P/BV (x) N/A 0.84 x 1.62 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited

Business summary

Bien Hoa Sugar JSC (BHS) manufactures and trades sugar and sugar-related products. BHS operates on a production line of 3,500 tons per day.

BHS now has 10% market shares of the domestic sugar market. In the packaged sugar market, BHS has 60% of total market shares. Most of its products are distributed to consumers through retailing networks nationwide.

Since December 2006, the Company was listed on Ho Chi Minh Stock Exchange. In 2007, the Company reported a 15.9% decline in sales but the net income increased 13.1% from VND47.4bln (US$2.96mln) in 2006 to VND53.6bln (US$3.35mln), in which 86.65% came from processed sugar. BHS plans to increase its revenue by 11.48% to reach a net income growth of 10%, in 2008.


Major shareholders of BHS are the State (10.8%), Vinamilk (9.6%), Vietnam Investment Limited (5.6%), Grinling Vietnam Limited (5.4%), and Sacombank (5.3%).

State11%

Others70%

Foreigners19%


ManagementName Title Background Start date % of SharesMs. Pham Thi Sum Chairman Engineer, journalism 1986 0.37%Mr. Nguyen Xuan Trinh CEO Bachelor of economics 1981 0.24%Mr. Nguyen Hoang Tuan Chief Accountant Bachelor of economics 2000 0.03%Mr. Vo Van Nhu Chief of Compliance Diploma of administration 1982 0.13% Source: Company data


BHS is currently investing in “The West Vam Co Dong Industrial Processing Area”. The VND500bln (US$31.25mln) project started in October 2007 and includes: a 6,000 tons per year sugar factory, a 220,000 liters per day ethanol factory, a furfuril alcohol factory, a fertilizer factory, an animal feed factory, a port, and houses for employees.

BHS cooperates with Fair Energy Asia Ltd., (Singapore) in building the ethanol factory as a sub-project in the “The West Vam Co Dong Industrial Processing Area” project.

BHS recently acquired the Tri An Sugar Company for VND53.5bln (US$3.34mln). This new subsidiary will be re-established in early 2008.




Collections from AR 517,431 776,990 682,305 Payment for AP (321,716) (514,753) (532,196) Payment for employees salaries (17,900) (21,425) (28,572) Payment for interest expense (19,767) (26,717) (12,539) Payment for enterprise tax (811) (7,491) (504) Other cash inflows from operating activities 564,150 1,759,999 1,629,396 Other cash outflows from operating activities (630,119) (1,798,304) (1,728,920)

Net cash flows from (used in) operating activities 91,268 168,299 8,970 Net cash flows from (used in) investing activities (21,650) 3,915 (753) Net cash flows from (used in) financing activities (37,428) (181,065) (27,035)

Net increase (decrease) in cash and cash equivalents 32,190 (8,851) (18,818)



Operating expenses (25,523) (29,007) (31,670) EBIT 53,292 69,429 44,783 Net Interest - (15,230) (13,387)

Interest income - - - Interest expense - (15,230) (13,387)

Net Investment income (loss) (17,395) (16,872) 8,637 Net other non-op. JV+Assoc. - - - Net exceptionals 1,390 (1,029) 213 Profit (loss) before tax 37,287 51,528 53,633 Income taxes (3,272) (4,106) - Minority Interest - - - Net profit (loss) after tax 34,015 47,422 53,633 EBITDA N/A N/A N/AEPS basic (VND) N/A 5,855 3,183 EPS fully diluted (VND) N/A 5,855 3,183 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 500,043 589,781 667,008 Current Assets 224,453 329,833 363,458


Non-Current Assets 275,590 259,948 303,550 Investment properties - - - LT invesments 1,226 1,370 17,770 Fixed Asset 273,546 231,239 269,825 LT receivales - 26,703 15,114 Others 818 636 841



Non-Current Liabilities 170,136 161,392 185,990 Long term debts 170,136 161,140 185,524 Others - 252 466

Owners’ Equity 111,039 353,878 380,383 Paid-in capital 81,000 162,000 168,477 Reserve 18,570 3,725 21,804 Undistributed earnings 11,469 33,676 35,625 Others - 154,477 154,477


Key ratios 2005 2006 2007*Growth (%YoY)Sales N/A 41.7% -15.9%Operating profit N/A 46.4% 1.6%EBITDA N/A N/A N/ANet profit N/A 39.4% 13.1%EPS N/A N/A -45.6%Profitability (%)Gross Margin 14.6% 12.8% 11.9%Operating Margin 9.9% 9.1% 7.0%EBITDA Margin N/A N/A N/ANet Profit Margin 6.3% 6.2% 8.3%ROA 13.6% 8.7% 8.5%ROE 61.3% 20.4% 14.6%Liquidity and SolvencyGross debt/equity (%) 350.3% 66.7% 75.4%Net debt/equity (%) 313.9% 57.7% 72.0%Int. coverage (x) N/A 2.59 x 3.35 xCF int. coverage (x) 5.62 x 7.30 x 1.72 xCurrent ratio (x) 1.03 x 4.43 x 3.61 xQuick ratio (x) 0.73 x 3.55 x 2.84 xNet debt (VND'mln) 348,536 204,254 273,794 Per share data (VND)EPS basic N/A 5,855 3,183 EPS fully diluted N/A 5,855 3,183 CFPS N/A 20,778 532 Book value N/A 43,689 22,578 Sales per share N/A 94,583 38,221 EBITDA per share N/A N/A N/ADPS 2,000 600 800 Average O/S shares N/A 8,100,000 16,847,840



SBT- SUCRERIE DE BOURBON TAY NINH Market: HOSE

Sector: Fishery

HRS Equity Research

29th February 2008

Daily QSBT.HM, Q.VNI 1/2/2007 - 2/22/2008 (BKK)

Line, QSBT.HM, Last Trade(Last), Insuf f icient DataLine, Q.VNI, Last Trade(Last)2/22/2008, 687.1

PriceVND

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.1234 16 01 16 01 16 02 16 01 16 01 18 02 16 01 16 03 17 01 16 01 16 03 17 01 16 01 18

Jan 07 Feb 07 Mar 07 Apr 07 May 07 Jun 07 Jul 07 Aug 07 Sep 07 Oct 07 Nov 07 Dec 07 Jan 08 Feb 08 Source: Reuters

Stock profile/ StatisticsReuter ticker SBT.HMPrice Last (VND): 27-Feb-08 21,700 52 Wk high (VND): - 52 Wk low (VND): - Market capital:(mln' dongs) 972,685 Outstanding Share 44,824,172 Free float 44,820,000 Beta N/A3 months average daily volume - Current room for foreign investor N/AShare performance (%) YTD 1M 3M 6MAbsolute (%) N/A N/A N/A N/AIndex change (%) -24% -10% -31% -24%Relative (%) N/A N/A N/A N/A Key Indicators 2005 2006 2007*Net Sales 629,791 679,860 674,272 Sales growth (%) 80.6% 8.0% -0.8%EPS growth (%) N/A N/A N/AP/E (x) N/A N/A 5.08 xP/CF (x) N/A N/A 7.25 xEV/EBIDA (x) 0.44 x 0.15 x 4.48 xDPS (VND) N/A N/A N/ADY (%) N/A N/A N/ANet gearing (%) 0.03 0.02 0.02 Altman Z-score N/A N/A 686.1%ROE (%) 9.9% 13.6% 11.9%BV (VND) N/A N/A 35,931 P/BV (x) N/A N/A 0.60 x Source: Reuters, Company data, Horizon Securities; (*) Unaudited


SBT is investing on a 250ha land in An Hoa Industrial Park with an initial investment of VND2800bln (US$175mln).

SBT management also intended to diversify its business into electricity production and an ethanol plant with initial investment of VND880bln (US$55mln) and VND160bln (US$10mln), respectively.

The company established Bourbon Industry in which SBT contributed 60% of the VND290bln (US$18.13mln) chartered capital. This new subsidiary is responsible for the construction and management of An Hoa Industrial Park.

In 2007, SBT has started several projects in Tay Ninh province, including Ben Keo Industrial Zone and Tan Phu Industrial Zone.

Finally, it is planning to upgrade its capacity to 200,000 tons sugar per year in 2010.

Business summary

Sucrerie de Bourbon Tay Ninh (SBT) is a joint stock company with the charter capital of VND1,419bln (US$88.68mln). SBT was recently listed on HOSE in February 2008 at a reference price of VND30,000.

SBT primarily produces refined white sugar from sugar-cane and raw sugar, in which the brand Mimosa contributes up to 90% of total revenue. Its pressing capacity of raw sugar-cane is 1.2mln tons per year, resulting in 120,000 tons sugar per year. SBT accounted for 18% of refined white sugar market and 6.4% of total sugar market.

In 2007, SBT reported VND729bln (US$45.56mln) of total revenue, up 7.37% compared to 2006. SBT plans to reach VND783bln (US$48.93mln) of total revenue in 2008.


SBT’s major shareholders are Bourbon Group (68.4%), Kinh Do Corp. (5%), and Vinamilk (5%).

others29%

foreigners71%

ManagementName Title Background Start date % of SharesMr. Jacques de Chateauvieux Chairman MBA 2007 0.01%Mr. Philippe Lombard CEO Engineer 1997 0.02%Ms. Nguyen Thi Thuy Tien Chief Accountant MBA 1996 0.01%Mr. Khong Van Minh Chief Compliance MBA 2007 0.00% Source: Company data



Financial Data Cashflow (VND'mln) 2005 2006 2007*Operating CF 292,781 211,823 134,192

Pofit (loss) before tax 120,961 192,525 191,321 Depreciation & amortisation 75,352 70,942 70,138 Change in working capital 96,468 (51,644) (127,312) Others - - 45

Investment CF (82,964) (207,679) (107,669) Financing CF (150,193) (8,386) 4,614 Net increase (decrease) in cash and cash equivalents 59,624 (4,242) 31,137





Net Investment income (loss) (299) 18,774 41,918 Net other non-op. JV+Assoc. - - - Net exceptionals 1,895 (96) 294 Profit (loss) before tax 120,961 192,525 191,321 Income taxes - - - Minority Interest - - - Net profit (loss) after tax 120,961 192,525 191,321 EBITDA 194,717 244,789 219,247 EPS basic (VND) N/A N/A 4,268 EPS fully diluted (VND) N/A N/A 4,268 Balance Sheet (VND'mln) 2005 2006 2007*Total Assets 1,380,551 1,519,125 1,715,676 Current Assets 365,711 566,729 752,035

Cash & ST investment 161,989 373,061 463,677 Stock & debtors 203,196 192,819 285,939 Others 526 849 2,419

Non-Current Assets 1,014,840 952,396 963,641 Investment properties - - - LT invesments 47,220 48,531 124,973 Fixed Asset 960,878 897,791 830,496 LT receivales - - - Others 6,742 6,074 8,172



Non-Current Liabilities 32,216 34,326 32,978 Long term debts 32,216 29,829 27,443 Others - 4,497 5,535

Owners’ Equity 1,226,734 1,419,258 1,610,579 Paid-in capital 1,524,043 1,524,042 1,419,258 Reserve (297,309) - - Undistributed earnings - (104,784) 191,321 Others - - -


Key ratios 2005 2006 2007*Growth (%YoY)Sales 80.6% 8.0% -0.8%Operating profit 254.6% 61.8% -0.8%EBITDA 62.1% 25.7% -10.4%Net profit 138.7% 59.2% -0.6%EPS N/A N/A N/AProfitability (%)Gross Margin 22.4% 28.9% 26.6%Operating Margin 19.0% 25.6% 22.1%EBITDA Margin 30.9% 36.0% 32.5%Net Profit Margin 19.2% 28.3% 28.4%ROA 8.8% 13.3% 11.8%ROE 10.4% 14.6% 12.6%StabilityGross debt/equity (%) 12.5% 7.0% 6.5%Net debt/equity (%) 7.0% 2.6% 0.7%Int. coverage (x) 15.44 x 108.86 x 100.82 xCF int. coverage (x) 38.86 x 133.64 x 91.73 xCurrent ratio (x) 3.01 x 8.65 x 10.43 xQuick ratio (x) 1.74 x 6.31 x 8.23 xNet debt (VND'mln) 86,240 36,531 10,625 Per share data (VND)EPS basic N/A N/A 4,268 EPS fully diluted N/A N/A 4,268 CFPS #DIV/0! #DIV/0! 2,994 Book value N/A N/A 35,931 Sales per share N/A N/A 15,043 EBITDA per share N/A N/A 4,891 DPS N/A N/A N/AAverage O/S shares - - 44,824,172



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