Company Report

Our current base case assumption that Brent oil price will average at USD 65/bbl in 2019-2020. Accordingly, our 1-year target price for PVS arrives at VND 25,100/share (from VND 27,000/share) on a lower earnings forecast for 2019F/2020F, which is based on a lower target P/E of 12x (from 13x, vs. regional median level of 12.8x) and target P/B of 1x. We reiterate an Outperform rating for the ticker, based on current market price.

At the current share price of VND 35,000/share, VRE is trading at an EV/EBITDA of 14.1x, which is relatively lower than the regional peer average of 15.7x and 10.7% below fair value. Our rating is MARKET PERFORM for the stock

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.

Assuming that GVR will achieve its 2019 target, 2019 EPS would be VND 805. At the current price of VND 14,600 per share, GVR is being 2019 PER and PBR of 18x and 1.3x respectively. Amid a comparatively lower natural rubber price, more attention is being drawn to GVR divestment from its non-core business, land compensation income, and its land bank, particularly during the period of rising demand for industrial park.

At the current price, HSG is trading at 2019 and 2020 PER forward metrics of 9.4x and 9x respectively. We maintain our Market Perform rating on the stock, with a target price of VND 8,100/share based on consistent PE, PB and EV/EBITDA targets of 7x, 0.6x and 6.5x respectively. We think that the recovery in profit margin and the stabilization in the galvanized steel market can be supportive factors for HSG in the coming time. However, we think that the stock can be more attractive in case the company shows improvement in sales volume and market share.

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.