We provide an update on CNG Vietnam JSC (HOSE: CNG) — hereafter referred to as CNG VN — which along with Southern Gas Trading JSC (HNX: PGS) form a duopoly in Vietnam’s compressed natural gas (CNG) market. In 2022, CNG VN plans to start a new business line of liquefied natural gas (LNG) distribution.
CNG VN had robust revenue and PBT in H1 2022 of VND2.2tn (+49% YoY) and VND91.8bn (+91% YoY), respectively. Thanks to (1) increased gas sales volume and (2) surging international oil & gas prices in H1 2022, CNG VN completed 68% and 84% of its 2022G revenue and PBT while surpassing its initial guidance for H1 by 135% and 168%, respectively.
CNG VN is currently trading at a TTM PER of 8.6x — a 27% discount vs our selected peer group median of 11.7x
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