Experience from Taiwan apply for Equity

Investment in Vietnam

Investment Department May 2012

Taiwan Training Trip Sharing

Outline:

Three steps for stock investment

Macro Analysis

Sector Analysis

Company Analysis

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Three steps for Stock Investment

Economy Analysis

Sector Analysis

Stocks Analysis

Step 1: Economy Analysis

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1. Economy trend, cycle

GDP yoy

2. Inflation Trend, Cycle

%CPI yoy

Experience from Cathay TW:•When GDP is at bottom, or •Lower Government target => Time for Stock Investment

Inflation is on down trend (comparison with three consecutive mths) Government think that Inflation

is already down

High

Low

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3. Others investment channel:

Step 1: Economy Analysis

%Government Bond yield

4. Stock Index:

Deposit, bonds, … is at low level

Stock index is at cheap price(refer to latest bottom)

Resistance line

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Step 2: Sector analysis

Advise from Cathay Taiwan: choose sectors connect to GDP=> Financials, Consumer

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Large Stock

Weight

Others

8 Largest companies dominated the market(Cathay Taiwan advise we should choose some largest companies)

Step 3: Company analysis

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BVH AAM

Decide Investment Method (as advised, we should choose safety stock for first time investment )

RISKY Stock SAFETY Stock

Things to ConsiderStep 3: Company Analysis

3 Rules for Investment Decision

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BCI DAS

RULE # 1: For downward trend price, BUY when volume increase

Price chart

Volume

Price chart

Volume

Step 3: Company Analysis

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VE9 PHR

RULE # 2: BUY if Stock is sideway for longtime but suddenly increase both price and volume

3 Rules for Investment Decision

Price chart Price chart

Volume Volume

Step 3: Company Analysis

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SDD KMRPrice chart

Price chart

Volume Volume

RULE # 3: SELL when stock at high price and volume increase:

3 Rules for Investment Decision Step 3: Company Analysis

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P/E ratio analysis:

Valuation:Step 3: Company Analysis

Expensive price

Cheap price

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Broker views: Step 3: Company Analysis

Financial analysis:

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- Should based on 5 years

- Audit report from big four company

- Financial report should be released on time

- Company plan in the next five years

Step 3: Company Analysis

FA Criteria's:

How to get information?

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Step 3: Company Analysis

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How to get information?Step 3: Company Analysis

Thank you

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