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Title Company report DBC ICB 3570
Report Type Phân tích công ty
Source BSC
Industry Consumer Goods
Bussiness DBC
Detail Date : 04/04/2014
Total pages : 8
Language : English
File Type : .PDF
FileSize : 573 Kb
Download: 357
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Short Content DBC is the first domestic animal feed company owns a closed business model from breedings, animal feed, contracted farming to food processing and selling. This model not only utilizes the advantages of the existing business of the DBC but also towards Vietnam food markets having high growth rate and competes with foreign brands in context of economic integration under WTO and upcoming TPP, Vietnam-EU FTA commitments. However, TPP will bring many challenges for the company; DBC has enhanced its capacity by investing its farms, machinery technology of USA such as breeder farms, hatchery station, animal feed warehouse, etc. DBC is one of the ten biggest company proceduring animal feeds in Vietnam. Revenues from animal feeds got highest proportion in DBC’s revenue structure (62.27%). The company accounted for 20% of market share in the North and Center. DBC has 4 manufacturing plants with total capacity of 520.000 tons per year and many trusted brands such as Dabaco, Topfeeds, Nasaco, Khangti Vina and Kinh Bac. In 2014, the company plans to sell 398.000 tons, up 15.27% compared to 2013, contribute about 60% to its revenues. In 2014, input material prices are expected to fall: Price of corn, wheat and soybeans are expected to remain low or decline in 2014 due to oversupply. USDA forecasts that the world production of corn, wheat and soybeans 2014 will increase by 12%; 9.5% and 7.2%, respectively, while demand wil increase by only 9.5%; 3.6% and 4.2%, respectively. DBC stored enough corn for production till November 2014. DBC’s expected performance in 2014: The company targets its revenue of VND8,256 billion (there are approximately 30% of internal sales and it does not include real estate sales), profit before tax and profit after tax of VND266 billion and VND210 billion, respectively. In more cautious view, we forecast that in 2014 DBC’s revenue will reach VND5,039 billion, an increase of 7.11% compared to 2013, net profit will reach VND219 billion (equivalent to EPS of VND3,500). Investment points: DBC is the largest animal feed firm listed on the exchange. Its comparitive valuation ratios are quite attractive: P/B is smaller than 1 and P/E stands at 7.5 times. Business performance in 2014 is expected positive due to the decrease in raw material prices and lower interest costs. We strongly recommend buying DBC with expected price in 12 months is VND30,400.