SJD [NON RATED] - Lower output due to drought but good M&A - AGM Notes
2015 EPS might decline due to drought (El Nino) but we think VND2,500 DPS is still possible as SJD still has ample cash on hand and is ready to increase pay out ratio. SJD will pay VND2,500 DPS for 2014 on 10 September, 8.6% yield. AGM approved the M&A of Se San 3A to double SJD’s capacity; risk from M&A strategy declines. SJD is trading at PER of 7.9x company guided EPS and cash dividend guidance of VND 2,000 (yield 6.8%).