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.
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