Company Report

Based on audited financial statements, 2018 BVPS and EPS of BVH were VND 22,065 and VND 1,612 respectively. At the current price of VND 81,300 per share, the stock is trading at 2018 PBR and PER of 3.7x and 50.4x respectively. Based on the company’s 2019 plan, 2019 BVPS and EPS of BVH on a respective basis are estimated at VND 22,748 and VND 1,676, with current PBR and PER at 3.57x and 48.5x. We estimate that if the capital issuance is implemented in 2H 2019, at the price equal to 3 times BVPS as of June 2019 at VND67,220 per share, BVH would have the proceeds of VND 2.785 tn. 2019F BVPS would pop up at +11% to VND 25,231. The PBR at current price would then be 3.22x.

At the current price, VGC is trading at 2019 PER of 13.6x. Our rating for the stock is Outperform, with a 1 year target price of VND 23,600/share, imlying an upside of 16% from the current price. We think that encouraging earnings growth in 2019, as well as the government divestment, would together be supportive catalysts for the stock in the next 12 months. Used to be mainly regarded as a construction material manufacturer, VGC should be rather viewed as a property developer in the next 12 months given the tremendous growth of the industrial park segment and the expected contribution of around 60% of consolidated PBT in 2019.

We maintain our 1Y-TP for ACV at VND 95,200/share (10% upside), based on a target EV/EBITDA of 16x (15% premium compared with the global average). Given the limited potential upside to current market price, our rating is Neutral. We will give further updates in our upcoming 2Q19 earnings report.

At VND 21,500 per share, MBB is traded at 2019E PBR of 1.3x. In general, management’s plan is along line with our expectations. Besides, the fact that the management expect to issue new shares at a higher valuation is a positive sign to the market. We reiterate our BUY recommendation, with a 1-year target price of VND 32,000 per share, equivalent to 2019E PBR of 2x.

At the current price of VND 19,050/share, VPB is trading at a 2019F PBR of 1.09x based on the bank’s plan of 2019F PBT at VND 9.5 tn, at 3.3% YoY. The PBR is lower than peers average of 1.5x. 

The revenue target for 2019 has been approved at the AGM at VND 16.7 tn, an increase by 22% YoY. However, the PBT target is set to drop by -10% YoY to VND 1.38 tn, which is also -14% lower than our current estimates for 2019 PBT of VND 1.602 tn (+4% YoY). At the current price, GEX is trading at 2019 PE forward of 11x. We maintain our Market Perform rating of GEX with 1-year target price of VND 24,200/share.

At the current price, PAC is trading at 2019 PE forward of 11.7x. Our rating for the stock is market perform with 1-year target price of VND 40,200/shared based on consistent PE of 12.5x. We think that the short term outlook of PAC is positive thanks to the low level of lead price and the company’s effort to address the capacity limitation of CMF battery line. However, amid the rising competition pressure and the change in market demand toward more modern product lines such as CMF or battery for electric vehicle, the long term prospect of the company would depend on the success of the company’s technology innovation to catch up the overall trend.

We maintain our BUY recommendation for PTB, with an upside of 28%. Our unchanged 1Y-target price is VND 83,300 / share using sum of the parts methodology. At a current price of VND64,800 / share, PTB is being traded at 2019F-2020F of 7.1x and 6.2x, which is considered low in our view. In addition, given the 2019 cash dividend worth VND 3,200/share, the current dividend yield is 4.9%, which is high for a growth stock. Our target price using sum of the parts is equivalent to a 2019F PER of 9.6x.

DPM’s revenue increased notably to VND 9.395 tn (+16% YoY), surpassing its 3.8% revised guidance provided in December 2018. Net income arrived at VND 712 bn (-20% YoY, based on the post-audit financials of 2017), accounting for 115% of the 2018 revised target. At the current price of VND 17,550 per share, DPM is trading at 2019E PER of 18.5x on our revised 2019 earnings. These revisions were influenced by (1) the decline in sales volume of urea, NH3 and NPK and (2) increase in transportation tariffs. With equal weight assigned to PER, PBR and EV/EBITDA multiples of 9.5x, 1x and 5x (unchanged), respectively on our revised 2019 forecasts, we arrive at a new TP of VND 17,600 per share (from VND 21,700), and downgrade our rating to UNDERPERFORM (from Neutral).