- We maintain our BUY rating for IDC but cut our target price (TP) by 51% to VND45,500/share.
- Our lower TP is mainly driven by (1) our 3.5-ppt higher WACC, (2) removing all of IDC’s future IP projects (total site area of 2,046 ha) from our valuation and (3) our newly applied valuation discount of 10% to factor in IDC’s conglomerate structure, which are partially offset by the positive effect from rolling our TP horizon forward to end-2023. We apply a conservative valuation approach for IDC as we now only incorporate IP and residential projects that have already obtained investment approval and are in development into our valuation and TP.
- We raise our 2022F NPAT-MI forecast by 7% due to higher-than-expected IP revenue recognition (notably from the fully-occupied My Xuan B1 IP) while broadly maintaining our 2023-2024F NPAT-MI forecasts.
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