Title PSD_BUY_TP 50,300_Like a day without storms_BSC Company Update
Report Type Phân tích công ty
Source BSC
Industry
Bussiness
Detail Date : 12/04/2022
Total pages : 7
Language : English
File Type : .PDF
FileSize : 920 Kb
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Short Content

VALUATION

We recommend BUY stock symbol PSD at 50,300 VND/share, 21% upside from March 1st, 2022, using P/E method with a target P/E of 9 times  - 17 times lower than the median P/E of similar sized firms and 16 times the P/E of DGW (companies in the same industry).17 times lower than the median P/E of similar sized firms and 16 times the P/E of DGW (companies in the same industry).
 
FORECAST OF BUSINESS PERFORMANCE
BSC forecasts net income and NPAT to reach VND 10,552 billion (+24% YoY) and VND 175 billion (+22% YoY). EPS fw = VND 5,592 and P/E fw=7.4 – 9 times lower than average PE from the Apple distribution period, P/B fw =2.
 
INVESTMENT THESIS
  • The growth driver of the phone and laptop segment comes from (1) the contribution of new models of Samsung and Apple; (2) The trend of premiumization thanks to (2.1) the turning off of mobile phones, (2.2) the increasing trend of studying, working online and playing games and (2.3) chip shortage is expected to continue until early 2023 ;
  • The new staffing system opens up medium-term growth expectations of the electronics and refrigeration segment and restructures the inefficient business segment.
Healthy financial structure, stable dividend yield ~6%
Factors to watch out for: Continued growth through horizontal diversification.
 
RISKS
  • The growth potential of the current brands is saturated;
  • Can't sign new brands.
  • Low liquidity makes stock price not fully reflect business results
 
BUSINESS UPDATE
Revenue and N PAT in 2021 will reach VND8,526 billion (+3.6%YoY) and VND139 billion (+237%YoY) respectively. Of which revenue grew by only 3.6%, we expect the contribution of the laptop and mobile phone double-digit growth to be offset by the decrease in Samsung revenue in 2021 due to the high 2020 base.