Title MPC_Neutral_TP 33,500 VND_Upside 7.4%_Waiting for the investigation result_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness MPC
Detail Date : 21/09/2020
Total pages : 12
Language : English
File Type : .PDF
FileSize : 1199 Kb
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Short Content

Valuation

We maintain our NEUTRAL recommendation for MPC stock with the target price 2021 of 33,500 VND (+7.4% compared with the closing price of 21/09/2020) based on two approach FCFF and P/E.

 
Business forecast
For 2020, we expect MPC to post a respective VND 17,264 bn (+2% YoY) and VND 576bn (+30% YoY) in net revenue and profit after tax, equivalent to EPS 2020 of 2,901 VND/ share, PE fw 2020 of 10.0 
 
For 2021, we forecast net revenue and profit after tax reach VND 19,419 bn (+12.4% YoY) and VND 695 bn (+20.6% YoY). EPS 2021 is 3,498 VND/share.  
 
Catalyst
EV – FTA coming to effect will support exporting to EU market
MPC increase the ratio of self – supplying raw materials thanks to (i) applying new technology in current farmlands (ii) deploying of new 300 ha farmlands. 
 
 
Risks 
Negative result of anti – dumpting tax investigation lawsuit
Corona virus gets worse in the second half of 2020, preventing the recovery of the shrimp demand. 
 
Company Business Result Update
First half of FY 2020 business result saw a significant increase in net earnings thanks to cutting expenses. Net sales totaled VND 5,580bn (-25.7% YoY), fulfilling 37% of guidance while net profit posted VND 231bn (+49.7% YoY), fulfilling 25% of guidance. Exporting markets slumped in the first 6 month: USA (-67% YoY), EU (-39% YoY)….
BSC expect that EVFTA coming to effect since 1 August 2020 is a strong catalyst for MPC’s exporting value going forward. 
Mseafood’s anti – dumping tax investigation lawsuit progress: MPC had sent informations and documents related to the lawsuit, however, corona virus may slow down the progress of investigation.