Title EVE_N/A_Company Update_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness EVE
Detail Date : 29/11/2021
Total pages : 6
Language : English
File Type : .PDF
FileSize : 434 Kb
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Short Content

 VALUATION

By the end of November 29th 2021, EVE closed at VND 17,950 per share, equivalent to trailling PE multiple of 14.9 which is   equivalent to the industry median P/E.

BUSSINESS PLAN

EVE set the target of revenue and profit before tax of VND 1,060bn (+24%  YoY) and VND 75bn (+78% YoY). Forward EPS for FY2021 is 1,973 VND/share, forward PE is 8.9.

TECHNICAL ANALYSIS

BSC recommends that medium and long-term investors open positions at an attractive price range of 17.5-18.0, take profits at 20.0 and cut losses if the stock loses the support level of 16.7.

COMPANY UPDATE

§  Revenue and Net Income in the third quarter of 2021 dropped sharply with revenue reaching 155 billion (-27% YoY) and 6 billion (-64% YoY). BSC believes that the sharp drop is due to (i) the outbreak of the Covid-19 epidemic, affecting retail activities and hotel orders (ii) Increased costs due to 3 on-site deployment (iii) Increased transportation costs high.

§  Revenue breakdown by product: Bed sheets reached 86 billion (-31% YoY), Cotton sheets reached 57 billion (-12% YoY) and Towels reached 11 billion (-46% YoY).

§  Revenue structure by geography: Export reached 83 billion (-17% YoY), domestic reached 72 billion (-36% YoY). 

Gross profit margin decreased from 33.5% to 30.8% as gross margin of Towel product plummeted from 12% to 4% due to increase in raw material prices and unusual costs related to employees. Meanwhile, the gross margin of Bedding and Cotton achieved a positive level (from 25% and 43% to 32% and 41%).