Analyst Pin-board MBB – 2022/2023 outlook: credit growth and credit cost margin are solid growth factors
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· The consumer finance segment of the group has expanded to make up circa 6% of the consolidated loan book. Despite the growing contribution of riskier segments, we expect operating costs control and easing credit cost margin to prevail to contribute significantly to earnings growth in the 2022-2023 period. · Notwithstanding the potential of exclusive quota granted, we conservatively factor in a 26% consolidated credit growth in 2022. Given that, we have a 2022-2023 PBT forecasts at VND 21.8 trillion (USD 948 mn, 32% YoY) and VND 27.0 trillion (USD 1.2 bn, 24% YoY), respectively. TOI is projected to expand 21% in 2022 and 18% in 2023 despite robust NIM and NFI due to the static growth of other non-II. · The forward 2022 book value per share is VND 19,802, translating to a forward P/B of 1.6x. We anticipate tailwinds in 1H2022 and see sustainable enhancement in credit cost margin and CIR in the next few years, which should lead to stably high ROE. Therefore, we raise our target price to VND 42,800/share and maintain a BUY recommendation. This translates to an upside of 36% from the closing price of March 28, 2022. |
MBB SE, formerly MBB Industries AG, is a German-based private equity firm specializing in acquisitions of established medium-sized industrial companies. The Company makes investments in entities seeking to sell off a part of their business or the entire operation, perhaps as part of a succession process; selling a subdivision or an affiliated entity that no longer forms part of the organization's core business, and seeking for a management buyout or buy-in. It targets investments in firms with turnovers of 10 million euros and above. Its portfolio consists of Aumann AG, specializing in e-mobility, coil winding and automation, CT Formpolster GmbH, a producer of flexible polyurethane foams, Delignit AG, a supplier of ecological hardwood-based materials, DTS IT AG, a cloud computing and cyber security provider, Hanke Tissue Spolka Z O.O., a producer of tissue paper, and OBO-Werke GmbH, a supplier of products for model construction, toolmaking and mould production, among others.
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