PVD - BUY - Earning forecast revised upward thanks to higher day rates & longer operating days - Update
We revise our target price upwards to VND112,900 following a higher FY14 NPAT growth forecast of 12.9% to USD102mn vs. 7% to USD96mn (previous update). Contracts for PVD I and PVD II were renewed last month resulting in avg. 8% higher day rate vs. 2013 and additionally, the operating days for hired rigs is up 29% yoy for FY14 on our estimates. Our revenue growth forecast for well-related services is unchanged at 15% yoy at a stable GPM of 24%.