Tiêu đề DGC_BUY_TP VND 72,800_Upside 32.5%_Continue to benefit from 5G in 2021_BSC Company Update
Loại báo cáo Phân tích công ty
Nguồn BSC
Ngành Vật liệu cơ bản
Doanh nghiệp DGC
Chi tiết Ngày : 13/07/2021
Số trang : 18
Ngôn ngữ : English
Dạng tệp : .PDF
Kích thước : 759 Kb
Tải về: 708
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Tóm tắt

 Valuation

We maintain a BUY recommendation on DGC shares, with a 2021 target price of VND72,800/ share (+32.5% upside its closing price of VND58,400 on Feb 22nd 2021) due to (i) adjusting business forecast for 2021 increased by 9% (contributed by the traditional segment); (ii) raising target P/E to 9.5 and (iii) included in the RNAV forecast for 44 Duc Giang Real Estate Project (valued at ~VND352 billion).
 
Business plan for 2021
We forecast that DGC’s net revenue and NPAT (contributed by the traditional segment) in 2021 will reach VND7,144 billion (+14.5% YoY) and VND1,198 billon (+26.4% YoY) respectively, equivalent to 2021 forward P/E of 7.8, 10% lower than forward industry P/E and 55% forward VN-Index P/E.
We forecast RNAV value of 44 Duc Giang Real Estate Project at VND352 billion.
 
Catalyst
Profit from 44 Duc Giang Real Estate Project (Commencement date: Q4/2021, Completion date: Q4/2023)
Profit from Duc Giang - Nghi Son Complex Project (Phase 1 and 2) reach VND800 billion.
 
Investment risks
Risk of policy related to the environment
Risks related to the project “Duc Giang – Nghi Son Chemical Complex”
 
Financial results & Business update
Business results in 2020 recorded a remarkable growth rate with net revenue and net profit after tax reaching 6,236 billion (+22.5% YoY) and 948 billion (+65.8% YoY) respectively. This result is equivalent to 95.3% and 101% of BSC's latest forecast.
Outlook for 2021: BSC believes that demand for Yellow Phosphorus will continue to grow after seeing a positive order outlook for 5G devices (which require 40% more chips than 4G) in 2020 and other products (Phosphoric Acid, Fertilizer), BSC kept a cautious view with sales flat/increasing slightly.