Psi Report

Industry: Finance| Insurance| Non-life insurance

PVI– PetroVietnam Insurance Corporation The company's shares are valued at VND 23,200 per share.

OVERVIEW  Stable market at second position in Vietnam: Since 2007, PVI has been ranked second in Vietnam in non-life insurance field, only after Bao Viet. In the first six months of 2010, PVI occupied the first position with market share of 23.9%, and then fell backed to the second place with 22.9% market share.  After nine months of 2010, revenue and profit have increased markedly compared to the same period last year: Premium revenue from first nine months of 2010 reached 2,850 billion, a 33% increase over the same period of 2009. Profit after tax was 217.48 billion, increasing by 45% over the same period of 2009. The increase in revenue of PVI resulted from the increase of revenue from the main business lines such as petroleum insurance, properties risk insurance, health and accidents insurance.  Additional supply of capital: The increase of capital from 1,035 billion dong to 1,597 billion dong has provided PVI with 500 billion dong of chartered capital and 600 billion dong of surplus. This has helped improve PVI’s operation and investment activities in Q3/2010 and in 2010 as a whole.  Advantage from a fast growing market: Vietnam insurance market is still young with much potential to grow. The total premium from life insurance only accounts for 0.8% of GDP, much lower than the region’s and in the world’s average.  Valuation: PVI’s share is valued at about VND 23,200 / share. This price is estimated using a combination of 2 methods (P/E, P/B). This price level implies a P/E ratio of about 10,81x in 2010, which is a relatively attractive PE ratio among insurance companies in Vietnam and among listed companies in the market.

KEY FINANCIAL FIGURES 2007 Net revenue (VND mil) Profit after tax (VND mil) Total assets (VND mil) Owners’ equity (VND mil) ROA ROE EPS (VND) 1,598,791 250,054 4,519,181 890,000 5.53%...