PET - UNDERPERFORM - Samsung : friend or foe? - Update
After a year with Samsung, PET’s overall sales increased by 13.4%, but net profit dropped by 15.3% yoy. As Samsung provides lower contribution margin than Nokia, and with Samsung products taking a greater piece of PET’s total sales, blended gross margins have progressively fallen. We believe that growing exposure to Samsung remains a real risk for PET, thus lower our target price to VND19,000/share which is based on a forward PER of 8.3x on EPS of VND2,347. UNDERPERFORM.