Report

FMC – Q2 2023 profit fell short of expectations, but 2H 2023 recovery outlook remains unchanged

  • In 1H2023,  net revenue and NPAT-MI stood at VND 2,041 bn (or USD 87 mn, -26% YoY) and VND 115 bn (or USD 5 mn, -26% YoY) respectively. The outcome fell slightly below our earlier forecast due to a slower-than-expected recovery in Q2.
  • Revised FY2023 forecasts: Net revenue expected at VND 4,900 bn (USD 208 mn, down 14% YoY), and NPAT-MI at VND 305 bn (USD 13 mn, down 1% YoY), compared to the previously anticipated single-digit growth of the latter.
  • We revise up our target price to VND 53,000/share, an 18% increase driven by (1) Rasing PE target to 9x from 8x in consideration of a brighter outlook in 2H 2023 & 2024; (2) Rolling valuation to mid-2024; (3) Adjusting down WACC from 13% to 11.8%. This TP reflects a 2023/2024 PE ratio at 11.4x/8.9x, corresponding to 2023/2024 EPS at VND 4,625/5,943. We recommend ACCUMULATING this stock with an upside of 10%.

 

Provider
Viet Dragon Securities
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
Loan Nguyen

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