LIX [NR] – Growing dependence on Unilever – Small Cap Research
Processing detergents for Unilever is profitable but creates dependency. Ultra conservative FY15 guidance given robust 1Q15 NPAT +139%. An abnormal earning of VND ~60b from sale of the factory land in Hanoi to VIC will be recognized in late 2015 or 2Q16 at the latest. At the current price, LIX is trading at a FY15 PER of 10.3x based on management guidance, relatively high compared to 8.4x of its competitor NET.