PVS - OUTPERFORM - Strains from oil evident but stock oversold - Update
FY14 EPS of VND3,937 beats our forecast by 4%; however, low oil prices strain gross margins across nearly all business segments. PVS FY15 guidance: 14% drop in revenue and 43% drop in PBT based on USD100/bbl oil; targets may be lowered 20% at USD50/bbl oil. We forecast FY15 NPAT to fall only 20% based on USD60/bbl oil. We think stock is oversold. At current price, PVS is trading at 8.7x VCSC’s forecast FY15 EPS of VND3,168. Reiterate Outperform rating.