CTR_BUY_TP 94,500 VND_Upside 16%_Viettel Construction Joint Stock Company_BSC Company Report

VALUATION

We recommend BUY for CTR stock with a target price of VND94,500, (+16% compared to May 27, 2022) for 2022 based on two methods FCFE and PE with a weight of 50 %/50%.

Forecast business results in 2022

BSC forecasts that CTR's revenue and profit in 2022 are estimated at 8,578 billion VND (+15.2% YoY) and profit after tax at 462 billion VND (+23.2% YoY). EPS FW 2022 = VND4,875. PE FW 2022 = 15.8 times.

Business plan in 2022              

CTR targets annual revenue of 8,586 billion VND (+15% YoY) and profit after tax of 414 billion VND (+10% YoY).

Business outlook in 2022            

Telecommunications-related business: Telecommunication construction declines due to low new demand; Operating, exploiting and responding to growth information from foreign markets; The rental infrastructure (TowerCo) grew strongly as the company increased the number of stations and improved the sharing rate

Non-telecommunications business: Civil construction is expected to move sideways when the price of construction materials is anchored; The integrated solution has not yet benefited from energy projects.

Risk

-       Risks related to doing business abroad

-       Risks related to rising construction material prices

Risks related to the progress of 5G deployment in Vietnam

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