Title BMI_BUY_TP 47,00_Prospect of divestment_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness BMI
Detail Date : 12/04/2022
Total pages : 9
Language : English
File Type : .PDF
FileSize : 989 Kb
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Short Content
Valuation 
BSC recommends BUY BMI stock with the recommended price of 47,000 VND/share (equivalent to 27.7% upside compared to the closing price on February 7, 2022 of 36,800 VND/share) with the target PB = 2.1x .
 
Forecasting business results
BSC forecasts that BMI's net profit and net profit in 2022 will reach VND 4,737 billion (+12.8% yoy ) and VND 268 billion (+7.1% yoy ), EPS FW = VND 2,448/share with the assumption (1) Premium revenue will reach VND 5,329 billion (+10.1% yoy); (2) The combined ratio increased to 98.9%, of which the loss ratio was 34%; and (3) The gross and net return on investment of investment assets are 9.7% and 7.4%, respectively.
 
Investment theme
  • Non-life insurance premium revenue is expected to grow again after the epidemic ;
  • BMI maintains a stable market share, with a nationwide branch network ;
 
Catalyst
The divestment at SCIC can help BMI be valued higher in the near future .
 
Risk
  • The prolonged epidemic affects the growth of insurance premium revenue.
  • Falling interest rates reduce BMI's financial returns.
 
Business Update
In 2021, BMI's net revenue and NPAT will reach VND 3,612 billion (+0.7% yoy) and VND 251 billion (+28.3% yoy) respectively due to (1) insurance business expenses -0.3% yoy, (2) expenses compensation and reserves -1% yoy, and (3) finance revenue +62.7% yoy .