Viet Dragon Securities - Analyst Pin-board VNM – Covid-19 resurgence to hinder growth prospects

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Viet Dragon Securities

Son Tran

Analyst Pin-board VNM – Covid-19 resurgence to hinder growth prospects

· We are cautious about VNM’s results. The company will witness low single-digit decrease of both revenue and NPAT in FY2021, mainly due to (1) the weakening demand of dairy products amid Covid-19’s spread in Vietnam and (2) negative impact of material price surge on profit margin.

· FY2021 estimated revenue and NPAT to be VND 58,653 Bn (or USD 2.5 Bn, -1.6% YoY) and VND 10,668 Bn (or USD 462 Mn, -3.7% YoY) respectively, completing 94% of revenue and 95% NPAT target. FY2021 EPS will be VND 4,594, and FY2021 forward PE will be 19x.

· We are prudent about the upside prospect in FY2021 as the company will face a difficult year under the impact of Covid-19 while new investment projects still need many years to create significant synergies on results and stock valuation. Therefore, we recommend to ACCUMULATE with a TP of VND 94,000 and total stock return of 15%.

21/07/2021 7 EN

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Viet Dragon Securities

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Analysts

Son Tran

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Analyst Pin-board VNM – Covid-19 resurgence to hinder growth prospects

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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