We raise our target price (TP) by 38% and maintain our BUY rating as we (1) increase our aggregate net income forecast for 2021-2025 by 27% relative to our previous forecast, (2) increase our target P/B to 2.3x vs 2.0x previously and (3) lower our cost of equity to 12.5% from 13%. We increase our 2021F net income by 12% vs our previous forecast to VND16.9tn (USD723mn; +33.9% YoY) as a result of (1) a 7% increase in projected net interest income (NII) and (2) 10% increase in total projected non
We maintain our OUTPERFORM rating for DXG while raising our target price by 11% to VND28,000/share mainly due to an increase in our assumed ASP for Gem Sky World (GSW) and higher valuation for the brokerage services segment. Q1 2021 pre-sales performance and earnings results were mostly in line with our expectation. We maintain our 2021F NPAT-MI forecast at VND1.3tn (USD55mn; vs a low base in 2020) as our upward revision in revenue and earnings of the brokerage services segment is offset by DX
We attended MWG’s investor calls on May 7, 2021. Our key takeaways reinforce our optimism on MWG’s strong business execution, which should bolster elevated earnings growth in the next few years. We see no material changes to our current forecasts, pending a more extensive review. Due to the current resurgence of COVID-19 in Vietnam and its potential prolonged negative impact on consumer income, management maintains a conservative view on domestic consumption of phones and consumer electronics
We initiate coverage on SZC with a BUY rating and a target price of VND45,000/share, implying a projected stock return of 35.7%, inclusive of a 2.9% dividend yield. SZC is one of the leading industrial park (IP) and urban area (UA) developers in Vietnam’s southern coastal Ba Ria-Vung Tau (BR-VT) Province (around 60-85 km from central HCMC). SZC developed the Chau Duc IP with a total site area of 1,556 ha, which was 39% occupied as of end-2020. Additionally, SZC is the developer
We maintain our MARKET PERFORM rating for NKG despite raising our target price by 58% to VND32,200/share. NKG’s share price has rallied 46% over the last three months. Our target price increase is driven by 1) an increase in 2021-25F NPAT-MI by 87% on average due to a projected improving EBIT margin, 2) higher targeted P/E of 8.1x compared to 7.8x previously, and 3) lower WACC due to a lower cost of equity.
We upgrade HSG to MARKET PERFORM from UNDERPERFORM following a 65% increase in our target price to VND38,500/share. HSG’s share price has rallied 55% over the last three months. Our target price increase is driven by 1) an increase in FY2021-25F NPAT-MI by 44% on average due to a projected improving EBIT margin, 2) higher targeted P/E of 8.1x compared to 7.8x previously, and 3) lower WACC due to a lower cost of equity.
We upgrade our rating for KBC to BUY from OUTPERFORM and raise our RNAV-based target price (TP) by 12% to VND48,500/share. Our higher TP is mainly due to our new incorporation of the Trang Due 3 industrial park (IP) in Hai Phong into our valuation for KBC as this IP has obtained critical approval from the Government. Moreover, our TP is positively affected by (1) rolling it over to mid-2022 from end-2021, (2) our 0.4-ppt lower WACC and (3) our increased IP land sales assumption for 2021-22F.
We maintain our target price at VND33,700/share but downgrade our rating from BUY to OUTPERFORM as BWE’s share price has increased by 7% over the past three months. Our target price is unchanged as a 3% downward revision in our 2021F-2025F aggregate core earnings forecast (due to lower volume assumptions) is offset by a 50-bp cut in our house cost of equity and a rollover of our TP to mid-2022 vs YE2021.
We reiterate our BUY rating for PPC thanks to its sustainable 7%-9% dividend yield and our view that its share price does not fully reflect the value of PPC’s investments in HND and QTP. We cut our target price by 1% mainly due to a 9% cut to our valuation for HND (see our HND Update Report, dated May 5, 2021), while our valuation for PPC’s standalone power generation business and QTP increased by 2% mainly thanks to a 0.5-ppt reduction of our WACC
We raise our target price by ~1% mainly due to a 50-bp reduction in our cost of equity that outweighs the negative impact of lowering our 2021-2030F NPAT-MI forecasts ~3% on average. We upgrade our rating from OUTPERFORM to BUY as GAS’s share price has fallen into attractive territory following a ~6% decline last month. We reiterate our optimistic view as we believe GAS will be the first beneficiary from Vietnam’s structural transition to LNG given the company’s monopoly position.