Viet Dragon Securities - Ba Ria Vung Tau House Development (HDC) Analyst Pin-board HDC – Strong profit growth outlook in 2022 led by the Light City project

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Viet Dragon Securities

Son Tran

Analyst Pin-board HDC – Strong profit growth outlook in 2022 led by the Light City project

· In 2021, HDC posted positive outcome with revenue and NPAT-MI of VND 1,352 Bn (+61% YoY) and NPAT-MI of VND 309 Bn (+34% YoY), respectively thanks to the recognition of The Light City phase 1, Ngoc Tuoc 2, Ecotown and Tay 3/2.

· Management sets the target business plan of 2022 with a revenue of VND 1,913 Bn (+41% YoY) and NPAT of VND 430 Bn (+38% YoY). In which, the projects The Light City, Ngoc Tuoc 2, Tay 3/2 will make major contributions. In 2021, HDC reflected its commitment when they are completing legal procedures to acquire 24 ha of Long Dien project (Vung Tau) and acquired 60% stake of company holding Ke Ga project (8,6 ha in Binh Thuan). If this business plan is completed, EPS 2022 is equivalent to VND 4,970.

· From our view, key stories of HDC include: (1) The success of private placement in 2022 (min price of VND 100,000/share) with maximum of 8,6 mn shares, (2) The legal progress of mid to long-term projects namely Phuoc Thang, Long Dien, Dong 3/2, etc. HDC stock is currently trading at a P/B of 6.2x, higher than the industry average (~3.7x). We will need to observe for further progress of these stories in the upcoming time. Therefore, we recommend OBSERVING the stock.

30/03/2022 5 EN

Underlying

Ba Ria Vung Tau House Development

Ba Ria Vung Tau House Development JSC. Ba Ria - Vung Tau House Development Joint Stock Company (HODECO) is a Vietnam-based company engaged in real estate operations. It is involved in the development of residential areas, houses and apartment buildings for sale or lease. The Company is also engaged in construction of residential and office buildings and streets. It manufactures and trades construction materials, such as ready-mix concrete, sewage pipes and bricks. Additionally, the Company provides real estate brokerage services, securities brokerage services and tourism services. HODECO has two subsidiaries engaged in real estate operations and construction and concrete trading.

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VN000000HDC9 Hochiminh Stock Exchange Vietnam

Provider

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.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”

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Analysts

Son Tran

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Analyst Pin-board HDC – Strong profit growth outlook in 2022 led by the Light City project

Ba Ria - Vung Tau House Development Jsc: 1 director

Analyst Pin-board HDC – Favorable outlook led by the Light City project.

Rubber prices – supply shortage creates a driving force for price anchoring in the medium term

Divergence

The pharmaceutical retail market — Long Chau leads the market

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