Analyst Pin-board BFC – 2022 is still good but not extend to 2023
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· After posting positive results in 2021, BFC announced another good earnings in 1Q2022 with growth of 46.8% and 19.3% in net revenue and NPATMI respectively. · However, the revenue growth came from a higher ASP while sales volume fell 15.1% in 1Q2022. The gross margin stayed at 12%, compared to 12.6% in 1Q2021. · BFC maintained a huge inventories as in 4Q2021 to prevent the fluctuations in raw material as well as to ensure enough input for production. · Revenue and NPATMI are forecasted to post VND9,756bn (+26.6% YoY) and VND281bn (+28.1% YoY) respectively. However, there will be no significant earnings growth from 2023 onwards except the good cash dividend policy, which is a result of a favorable business operation in 2021-2022. · The fair price of BFC is VND31,300. Combined with the cash dividend of VND2,000, we recommend to HOLD. At the current market price, the investor could receive at least 4,000 cash dividends till 2023, equivalent to a dividend yield of 11.9%. |
Binh Dien Fertilizer Jsc. Binh Dien Fertilizer Joint Stock Company (BFC) is a Vietnam-based company, which is mainly engaged in the manufacture and commerce of agricultural chemicals. The Company's leading products are various types of nitrogen-phosphorus-potassium (NPK) fertilizers under the brand name of Dau Trau, as well as other chemicals and farm supplies. The Company's products are not only distributed within Vietnam, but also exported to foreign markets, such as Cambodia, Myanmar and Laos. Other regular undertakings of the Company include the trading of industrial machinery and equipment for fertilizer manufacturing activities, together with the leasing of warehouses. Via its subsidiary, the Company also partakes in the provision of marketing consulting services.
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