Company Report

At the current price of VND 23,450/share, KDH is trading at 2019F and 2020F PE of 12.7x and 9.6x respectively, with a 2019F and 2020F PB of 1.7x and 1.5x. Our RNAV estimation for KDH is VND 30,167, a 29% upside compared to the market price. At this RNAV price, KDH is traded at a PE and PB target 2019 of 16.3x and 2.1x. We have a BUY rating on the stock.

At the current market price of VND 52,200/share, FPT’s shares are trading at 2019E and 2020E PER’s of 12.0x and 10.1x respectively, which we think are still attractive for long-term investors. We revise up our 2019 & 2020 estimates, mainly on higher software outsourcing sales from all export markets. We roll-over our valuation, and use the average net profit of 2019 & 2020 in our SoTP valuation, using the same target multiples for each segment. Accordingly, we derive a new 12-month target price of VND 67,000/share, which offers +28% upside potential from current levels, and reiterate our BUY call.

We raise our 12-month target price to VND82,400, based on an unchanged PBR target of 3.0x applied to our 2020E BVPS of VND27,452 (previously VND81,300 using 2020E BVPS of VND27,093), for a potential upside of 2.36% from the current price of VND80,500. Please note that this does not consider the cash dividend of 8% at par in 2019E and 2020E. Given the limited potential upside, we maintain our Market Perform rating.

At the current price of VND 103,700, shares of MWG are trading at 2019E and 2020E PERs of 12.0x and 10.1x respectively. The stock price has increased by 14% in the past one month. We think the main reasons for the good performance of the stock include: (i) the impressive business results of the company in 5M19, especially Bachhoaxanh; and (ii) the impressive performance of its covered warrants. We maintain our SOTP-based 12-month TP for MWG of VND160,300/share for a 54.6% upside potential, and reiterate our BUY rating.

At the current price, PLX is trading at 2019 level of 20.6x, which is equivalent to regional peers. We apply the SoTP method to estimate fair value of the stock price, with the target PE of 21x for the parent company thanks to its strong market position and 9-10x multiple for PLX subsidiaries. Accordingly, our 1-year target price arrives at VND 73,100 share, implying an upside of 14% from the current share price. Our rating for the stock is Outperform.

At the current price, VGC is trading at a 2019 and 2020 PERs of 13.5x and 12.1x respectively. We maintain our Outperform rating for the stock, with a 1- year target price of VND 22,800/share, implying an upside of 13.2% from the current price. We think that encouraging earnings growth in 2019, as well as upcoming government divestment, would together be supportive catalysts for the stock over the next 12 months.

At the current price of VND 55,000, shares of FRT are trading at 2019 and 2020 forward PER levels of 9.4x and 9.2x respectively. We apply a target PER of 10x for FRT to arrive at a price of VND 58,330/share, a 6.1% upside. Our current recommendation is MARKET PERFORM rating for the stock in 2019.

We raise our 12-month target price to VND81,300, based on an unchanged PBR target of 3.0x applied to our 2020E BVPS (previously VND68,600 using 2019E BVPS), for a potential upside of 8.4% from the current price of VND75,000. Please note that this does not consider the cash dividend of 8% at par in 2019 and 2020 that we had previously assumed. Given the reduced potential upside, we downgrade our rating from Buy to Market Perform.

We revised upwards our forecast for ACB 2019 PBT to VND 7.58 tn, at +18.7% YoY and +2.9%, elevated compared to our previous forecast of VND 7.37 tn. This raised outlook comes from higher forecasts of credit growth from the previous 13% YoY to 16.5% YoY. For 2020, we expect ACB to earn VND 8.79 tn of PBT at +16% YoY, given credit and deposit growing by 16% YoY and 15% YoY respectively. Using average BVPS of 2019F & 2020F and the target PBR of 1.8x, we arrive at a 1Y target price of VND 44,000 per share, which is equivalent to a dynamic upside of 46.2% from the current price. Therefore, we reiterate our BUY recommendation on the stock.

At the current price of VND 23,300 per share, LTG is being traded at a 2019 PER of 4.2x on total earnings and 5.7x on core earnings. We think that the main business (CPC – making up 53% of net sales and 77% of gross profit in 2018) will face more competition from cheaper generic products imported from China, while the improvement in rice and seed businesses may not be adequate to offset the decline in CPC earnings in the near term. In the longer term, LTG growth will depend on the potential of the rice business, which is quite uncertain at the moment. Nevertheless, LTG is traded at a cheaper valuation compared with industry peers, with a decent dividend yield (6.9%). For valuation, we use a target PER of 6x, lower than the peer average owing to high D/E ratio amid thin net profit margin. As such, we arrive at 1Y target price of VND 25,500, which is equivalent an upside of 9% from the current price and a MARKET PERFORMANCE rating.

We maintain our 20x PE target for 2020, and revise upwards our target price for VTP to VND 170,900/share (an upside of 26%) as we roll forward our valuation using our 2020 earnings estimate, and reiterate our OUTPERFORM rating for the stock. In a nutshell, we believe the market reaction is overblown regarding the news of the new businesses, and if continues, we feel this creates a buying opportunity for long-term investors.