Title VTP_NEUTRAL_TP VND 87,100_Upside 10.2%_The stage of corporate restructuring_BSC Company Update
Report Type Phân tích công ty
Source BSC
Industry Technology
Bussiness VTP
Detail Date : 18/06/2021
Total pages : 11
Language : English
File Type : .PDF
FileSize : 551 Kb
Download: 454
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Short Content
Valuation
  • We change our recommendation from BUY to NEUTRAL for VTP stocks with a 2021 target price of VND87,100 (+ 10.2% upside potential from its closing price on April 28th 2021, including dividends in 2020) after re-evaluating: (i) Company’s competitive positioning (ii) Growth potential in 2021 when the competition of the fast delivery service industry is becoming increasingly fierce. 
 
Business plan for 2021
  • VTP sets 2021’s revenue and profit target of VND21,420 billion (+23.5% YoY) and VND620 billion (+29% YoY), respectively. 
Forecast of business performance in 2021
  • We forecast that VTP’s net revenue and NPAT in 2021 will reach VND20,049 billion (+16.3% YoY) and VND440 billion (+14.6% YoY) respectively, equivalent to 2021F EPS of VND4,557 /share and a forward P/E of 18.8.
 
Catalyst 
  • Listing switches to Ho Chi Minh stock exchange (HOSE).
Investment risks
  • To attract users, players in the sector compete fiercely by reducing freight rates.
Financial results & Business update
  • In 2020, Viettel Post recorded the lowest growth rate since listing with net revenue and net profit after tax reaching VND17,236 billion (+120.7% YoY) and VND384 billion (+1% YoY) respectively.
  • Investment thesis: BSC supposes that the decrease in Viettel Post's share prices in the recent period reflects the declining growth rate of the corporation when market competition is getting increasingly fierce.