Viet Dragon Securities - Analyst Pin-board NT2 – Low business results in 2Q2021

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Viet Dragon Securities

Son Tran

Analyst Pin-board NT2 – Low business results in 2Q2021

Volume in 2Q2021 reached 955 mn kWh, -23% YoY, nearly equal to that in 1Q2021. Contract volume (Qc) was 795 mn kWh, accounting for 83% of total volume, -28% YoY.
Revenue in 2Q2021 was VND 1,616 billion (or USD 70 million) -2% QoQ and -14% YoY; NPAT was VND 25 billion (or USD 1.1 million), -79% QoQ and -90% YoY because of (1) A decrease in fixed price in the sale price, (2) Gas price surging and (3) Retrospective in 1Q2021. Accordingly, the 1H2021 NPAT reached VND 139 billion (or USD 6 million), -67% YoY, completing 30% the 2021 target.
Better outlook is expected in 3Q2021, from a low base in 3Q2020. Longer term, NT2 will become a cash cow. It pays dividends for shareholders owing to no investing activity and debt payment obligation.
We revise down the target price to VND 22,900 due to a decrease in fixed price in sale price and a gas price upward trend in the medium term. With the remaining VND 1,000 dividend for the year 2020, it offers an upside of 29% compared to the closing price on 30^th Hence, we recommend to BUY this stock.

02/08/2021 6 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Son Tran

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Analyst Pin-board NT2 – Low business results in 2Q2021

CTG - Solid Growth Outlook as Provisioning Pressures Subside

BREAKING ABOVE 1,300 POINTS

Comparison of domestic natural gas and LNG fuel sources

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