Title DBC - TP 69,600 - Post Peak Period
Report Type Phân tích công ty
Source BSC
Industry Consumer Goods
Bussiness DBC
Detail Date : 19/01/2022
Total pages : 10
Language : English
File Type : .PDF
FileSize : 693 Kb
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Short Content

 

VALUATION

We recommend NEUTRAL for DBC with target price of VND 69,600/share, 11% upside compared to the price on September 15, 2021 with DCF and P/E methods, with a weight of 40% - 60%.

FORECAST OF BUSINESS RESULTS

BSC forecasts revenue and NPAT in 2021 is expected to reach VND 10,750 billion (+7.3% YoY) and VND 1,127 billion (-19.5% YoY), equivalent to EPS fw of VND 9,683, PE fw of 6.5x, PB fw is 1.5x.

INVESTMENT THESIS

§  Take advantage of scale and control the value chain in the 3F segment: proactively supply internal feed from 80-90% of DBC livestock demand, optimize gross profit margin compared to small businesses and livestock farmers. feed.

§  Long-term growth potential, thanks to (1) Livestock segment: capacity expansion of 3 project complexes in the pork segment in the period 2022-2023 (2) Vegetable oil segment: Expected oil press plant Phase 2 is expected to come into operation in Q4/2022 (3) Real estate segment: Promote investment in projects in Bac Ninh.

CATALYST

The potential comes from investment cooperation with large enterprises (Masan, CP, ...)

RISKS

§  Raw material price fluctuations affect profit margin.

§  Animal and poultry diseases.

§  Live hog price fluctuations.

COMPANY UPDATE

Net revenue and EAT in 1H/2021 is estimated at VND 5,070 billion (+10% YoY) and VND 580 billion (-23% YoY). In which, (1) Revenue from 3F segment (+8% YoY) but GPM decreased by 7.9 ppt YoY due to the 10%-15% YoY increase in feed price could only partially offset the 60% YoY increase in raw materials. and a decrease of more than 12% YoY in hog and chicken prices. (2) Revenue from commercial activities and real estate business decreased by 30% YoY and 76% respectively due to the Covid-19 epidemic causing hotels to close and delaying the handover of Lotus Center real estate project.