Report

FMC – Solid fundamentals allow the company to weather the storm

  • In Q4/2022, FMC delivered net revenue of VND 1,211 Bn (or USD 51 Mn, -16% YoY) and NPAT of VND 78 Bn (or USD 3.3 Mn, -26% YoY).  For the whole year of 2022, net revenue and NPAT achieved VND 5,702 Bn (or USD 237 Mn, +10% YoY) and VND 308 Bn (or USD 13 Mn, +15% YoY).
  • We expect that the weak demand can prolong until Q1/2023 then gradually recover along with the inflation cooldown.  In general, we believe that business results in 2023, although decelerating compared to the previous optimistic plan, are still able to maintain a single-digit increase thanks to well-managed operation and steady customer base.
  • We are reviewing our 2023 earnings forecast after 2022 earnings were slightly below our previous forecast. While it takes time to scrutinize, we see not much change in FMC's 2023 onwards outlook and valuation compared to previous reports. Our previous target price of 45,000 VND/share, plus a cash dividend of 2,000 VND/share expected for 2022. This is equivalent to an expected return of 27%, based on the closing price on January 19th, 2023. At the target price, P/E 2023 is at 8.3x, corresponding to 2023 EPS of VND5,450.

 

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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