SSI Securities is optimistic about the development of the real estate market

DNHN - SSI Securities remarked that despite the real estate market's significant correction and improvement, there are still obstacles to overcome.

As a result of interest rates falling earlier than anticipated and government support, SSI Securities Company is more optimistic about the real estate industry and has upgraded its recommendation for the industry from "Poor" to "Neutral."

However, SSI also noted that despite the real estate market's significant correction and improvement, there are still obstacles to overcome. First, lending rates must continue to decline to stimulate demand. Second, the support policy takes time to truly take effect on the market, particularly regarding project ssssssssssssssss. Thirdly, default risk persists when investors are unable to reach an agreement with creditors to extend or modify payment terms.

According to SSI, the successful investors will be those who (i) are not overly affected by the bond issue, (ii) possess a substantial land bank, and (iii) have the ability to develop and market their products. strong. With their emphasis on affordable and middle-market segments, prudent financial management, and robust project development and marketing capabilities, these securities firms favor stocks from investors like NLG. Strong; KBC and IDC, whose primary business is industrial park development, benefit from a steady flow of foreign direct investment; as well as VRE, which can significantly improve after the Covid-19 pandemic due to its leading position in the retail market.

In addition, consideration must be given to the two sessions of the National Assembly in 2023 (May and October), during which numerous real estate-related laws are anticipated to be discussed and passed.

SSI forecasts that the banking industry's pre-tax profit growth will decrease to 10% YoY (from 13.8% in the prior year) even though there are still numerous challenges in the banking industry. It is anticipated that state-owned banks will experience significant growth (18.5%), while foreign-owned banks will increase by 4.9%. SSI continues to recommend "Neutral" for banking stocks.

SSI's preferred stocks are VCB, ACB, and STB. SSI chose VCB and ACB due to their prudent lending and cost management. Similarly, SSI anticipates that STB will provide interesting stories in 2024.

In the scenario where the real estate market is "recovering from the bottom," SSI may monitor TCB and MBB, as several significant projects related to these banks may progress shortly. However, SSI emphasized that investors must closely monitor the development of these projects to identify key moments for TCB and MBB's fundamentals and growth prospects.

PV (t/h)