20171201_BSC_Vietnam Company Visit Note_EN_BMP_ICB1350

On 04th, December, 2017 BMP share was traded at VND 97,000 per share, equivalent to P/E FW 2017 and P/E FW 2018 of 21x and 19x respectively.

Company Update
•Sales volume reached 64,500 tonnes in 9T2017 (+ 8% yoy). BMP target to get a full-year production growth of 9.7%, reaching 90,000 tonnes and a further increase of 10% in 2018.
•Adding 4% basic discount, applied from 9th, Oct to 16th, Nov, /2017.
•The average price of resin increased by 8.5% in 9M2017 compared to 2016 on average. It is expected that plastic resin price will increase by 8.5% YoY in 2017.
•BMP estimates EBT of 2017 reaching VND 600 billion.
•BSC forecasts the net sales and PAT in 2017 would reach VND 3,479 billion (+ 5% YoY) and VND 438 billion (-30% YoY) respectively. In 2018, these numbers would be VND 4,016 billion (+15 YoY) and VND 452 billion (+2 YoY), equivalent to EPS of VND 5,030 / share.

Catalysts:
•SCIC continues to complete the BMP divestment application in December 2017.