HAX - Benefiting from the favorable luxury car market
At current market price, HAX is trading at a P/E ratio of 5.4x, which we consider quite attractive given the positive prospects for 2019. We expect a growth in earnings of 9.2% YoY in 2019 thanks to anticipated improvement in the high-range automobile segment. In the long-term, we forecast that profits of the dealer will see a CAGR of 11% for the next five years. That is based on the strong position of MBV in the luxury auto industry and HAX’s ambitions to expand market share of Mercedes car sales.
Our target price is VND 19,600 per share. This target price, coupled with a VND 1,500 cash dividend in the next 12 months, would yield a total return of 30% (calculated based on the closing price on 21 December). Therefore, we have a BUY recommendation on HAX.
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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