Title BMP_BUY_TP 76,900_Upside 24.0_BENEFITS FROM REDUCED MATERIALS PRICES_BSC_Vietnam company update
Report Type Phân tích công ty
Source BSC
Bussiness BMP
Detail Date : 07/09/2022
Total pages : 12
Language : English
File Type : .PDF
FileSize : 724 Kb
Download: 117
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Short Content

 

Valuation

  • BSC recommends to BUY BMP stock with a target price of VND 76,900/share, equivalent to 24% upside compared to the price on September 7, 2022 based on two valuation methods PE and FCFF, ratio 50:50.

Forecasting business results

  • BSC forecasts BMP's revenue and net profit in 2022 at VND 5,527 billion (+21.4% yoy) and VND 513 billion (+139.7% yoy) assuming: output +5.8% yoy, gross margin increase 23.6% thanks to +15% yoy selling price and flat raw material price compared to 2021.
  • In 2023, BSC forecasts net profit and NPAT at VND5,937 billion (+7.1% yoy) and VND531 billion (+3.5% yoy) respectively, assuming sales volume recovers to 105-110 thousand tons before the pandemic , approaching the maximum power level.

Investment perspective

  • Consumption output gradually recovered to maximum capacity thanks to the control of the epidemic and the dominant advantage in the market share of plastic pipes in the South.
  • Gross margin improved thanks to a downward trend in input prices, while selling prices decreased more slowly than cost of goods sold.
  • High and regular dividends. Valuation (P/E) drops to historical average 

Risk  

  • Material price fluctuations;
  • Declining demand for plastic pipes..

Business Update

  • Accumulated 6M2022, BMP's revenue is 2,905 billion VND (+11% yoy) and EAT is 273 billion VND (+117% yoy). Gross profit margin recovered to 24.4% (+930 bps ).
  • Cumulative sales volume in 6M2022 -12% yoy, reaching 48,988 thousand tons.