Analyst Pin-board PAC – Low growth in 2021
2020 results were not positive as the company's business was negatively affected by Covid-19, which reduced demand for storage batteries. Due to this, the company had to increase trade discounts and advertising activities, increasing costs and reducing profits. In the coming years, the company's performance is likely to grow slowly as (1) the existing factories are operating at approximately 100% capacity. (2) from 2024, the new factory (An Phuoc) will come into operation, but will not operate at maximum capacity as it will produce moderately according to the market demand. The potential growth in the period of 2021-2025 is low, so we only adjust the PAC price from VND 26,900/share to VND 29,200/share as the storage battery demand recovers when the disease is partially controlled. Coupled with the expected cash dividend of VND 1,500/share in the next 12 months, the total return is -11%. We have a REDUCE recommendation on this stock.
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