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GVR - Rubber plantation owner with 492,000ha land bank launching IPO - IPO Note

Starting auction price looks attractive given significant land bank. The VND13,000 price translates to a 2017 P/E of 18.9x, 2016 P/E of 20.9x and 2016 P/B of 1.3x, which we believe appears attractive compared to peers, who are trading at a median TM P/E of 27.5x and a TTM P/B of 1.5x. The investment thesis for VRG is its significant land bank of 492,000ha of mostly rubber plantations, which could be converted to industrial park or real estate developments at low land clearance costs.