SSI [M-PF -0%] - Valuation is one facet; outsized tail risk is another - Update
We reiterate our MARKETPERFORM rating on SSI (Saigon Securities Incorporation) and raise our TP to VND23,000 (from VND21,030). Valuation is the key driver behind the rating. FVTPL (fair value through P&L) securities mask underlying performance: We forecast non-core FVTPL driven revenue to reduce by 25% in 2017F (from reported VND772 billion/USD34.3 million in 2016) and tapering off by 81% (2016 base) by 2019F. FVTPL sales revenue share declines from 35% in 2016 to a marginal 7% by 2018.