FPT announced preliminary Q1 2018 NPAT-MI of VND509bn (USD22mn, +23% YoY), which is broadly in line with our expectation. We foresee non-material changes to our target price. FPT is trading at an attractive 2018F PER of 13.0x; the dividend yield is solid at 4.5%. Long-term growth pillars, namely Software Outsourcing and Telecom, delivered outstanding PBT growth of 24% and 19% YoY, respectively.
We attended KDH’s 2018 AGM on April 26, 2018. Management released 2018 guidance for revenue growth of +14% YoY to VND3.5tn (USD154mn) and NPAT-MI growth of +59% YoY to VND800bn (USD35mn) for 2018. These are broadly in line with our current forecasts. Strong revenue and earnings growth will be presumably fueled by several project transfers and scheduled deliveries of 400 units at KDH’s Jamila project, which is already 100% pre-sold.
We attended NVL’s 2018 AGM on April 25, 2018 in Ho Chi Minh City. Management released revenue guidance of VND21.8tn (USD956mn) and NPAT-MI guidance of VND3.2tn (USD140mn) for 2018, implying 87% YoY and 55% YoY growth, respectively. NVL’s guidance is broadly in line with our forecast, mainly driven by VND1.3tn (USD60mm) of estimated one-off gains following consolidation of some subsidiaries and scheduled deliveries of 6,500 pre-sold units. Shareholders approved a dividend ratio of up
DPM’s AGM was held today. Shareholders raised a lot questions about the dismal 2018 guidance, the input VAT amendment and the Government’s divestment progress. Extremely low 2018 guidance, with revenue growth of 7.3% and a NPAT drop of 47.6%, is due to high depreciation expenses from NH3/NPK plants, management said. This guidance is lower than our expectation and management’s explanation did not satisfy shareholders.
We attended VJC’s AGM on April 26, 2018, in Ho Chi Minh City. Management released official 2018 guidance for revenue of VND50.9tn (USD2.2bn, +20.5% YoY) and PBT of VND5.8tn (USD256mn, +9.49% YoY). VJC also announced strong preliminary Q1 2018 results, which were supportive of its guidance and our forecasts. The remaining FY2017 dividend will be paid in two parts: (1) a VND1,000 per share cash dividend in May 2018 with an ex-rights date of May 9, 2018
TPB released results for Q1 2018 with a bottom line of VND513bn (USD23mn, +138% Y-o-Y and +104% Q-o-Q) with ROA and ROE at 1.7% and 29.4%, respectively. The results were driven by: Net interest income (NII) increased 52.3% Y-o-Y with a NIM of 3.3% (vs FY2017 at 3.0%). NII contributed 78.5% to TOI. Net fee income (NFI) increased 168.3% Y-o-Y to VND75bn (USD3.3mn), contributing 6.3% to TOI. Income from investment securities grew 70% YoY to VND174bn (USD7.7mn), contributing 14.7% to TOI.
we attended HT1’s AGM on April 26, 2018 in Ho Chi Minh City. HT1’s full-year profit before tax guidance of 20% YoY growth looks ambitious given weak Q1 results. We see downside pressure to our target price and reiterate our intention to revise down our forecasts. Shareholders approved the FY2017 cash dividend of VND1,500 per share, equivalent to an attractive dividend yield of 11.4% based on the current price.
FRT released its preliminary Q1 2018 results, including revenue of VND3.9tn (USD171mn, +17% YoY) and NPAT of VND64bn (USD3mn, +33% YoY). This impressive performance was driven by solid same-store-sales growth (SSSG), new store openings and full contribution from stores opened in 2017. Given that these results are broadly in line with our forecasts, we reiterate our BUY rating on FRT with a target price of VND177,700. See more details in our initiation report dated April 23, 2018.
We update MSN with a BUY rating with 25.3% upside. The 20% upward revision in our TP is driven by an improved F&B outlook, revaluation of associate companies and higher metal prices. 2018F PER seems high at 25.6x, but is supported by a strong earnings outlook. We forecast an EPS CAGR of 34% during 2019-2020 driven by robust core business growth and deleveraging. Proceeds from MSN's potential sale of treasury shares (up to 110 million shares) will accelerate the deleveraging process and, he
We reiterate our BUY rating with 36.9% total return including a 9.4% dividend yield. We cut our target price by 4.7% due to a higher market risk premium in our DCF model. Q1 recurring NPAT was in line with our forecast and Q2 earnings will likely be solid due to hot weather.