20171019_BSC_Vietnam company update_EN_NTP_ICB2353

Valuation
We recommend BUY for NTP with a target price of VND 83,900/share based on FCFF, upside 15% from current price.
Investment Highlights
•    NTP is a leading plastic pipe manufacturer with a capacity of 122,000 tonnes/year, accounting for over 60% of the market in the North.
•    Expected business results improved after SCIC divestment, shareholder structure changes.
•    Subsidiary of Central Tien Phong plastic Ltd is currently enjoying tax incentives 0% until 2017, 7.5% from 2018-2028 and 15% for the remaining time..
Investment risk.
•    High competition, especially after HSG and Tan A Dai Thanh opened new factories in the North.
•    Input prices go up. 9M2017, average input price of plastic resins rose by 21% yoy.