HDB - Parent bank to lead growth in the near term
HDB set an ambitious PBT growth target of 27% YoY based on aggressive credit expansion (+24% YoY) for which it has not obtained SBV approval yet. Given the bank’s plans to open 23 more branches/TOs, maintain the largest consumer finance network, launch new digital banking products, and clear all VAMC bonds, we expect pressure on operating costs and provision expenses to persist. Therefore, the AGM PBT guidance will be challenging. The outlook also depends on SBV’s final credit cap and the merger progress with PGBank.
We reduce our target price for HDB to VND 31,000, equivalent to a total return of 13.6% based on closing price as of May 31st (VND 27,300). We thereby keep an ACCUMULATE rating on the stock.
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