NTC’s 2023 AGM: THE GROWTH ENGINE RETURNED
- The critical bottleneck at NTU-3 has been solved. With the investment and business operation of NTU3 in the coming time, it will create a growth engine as well as add value to NTC enterprise value owing to (1) favorable location and (2) scarce supply in nearby area. Regarding the sales, we estimate that the project could bring a total of VND 9,099 billion (USD 386.7 million) from signed contracts in 8 years from 2024. The NPV of the project as of the beginning of 2023 is VND 3,096 billion (USD 131.5 million) or contribute value per share is ~VND 129,000.
- In 2023, NTC plans to lease 90 hectares, combining with the current recurring incomes from IP services, RBFs (ready built factories) leasing and financial assets could bring VND 813 billion (USD4 million) revenue and VND 284 billion (USD 12 million) NPAT. However, we conservatively expect NTC’s performance to be similar to the previous year with the estimated total revenue of ~ VND 389 billion (USD 16.5 million, -9% YoY) and VND 232 billion (USD 9.8 million, -10% YoY) of NPAT, respectively.
- In addition, the company plans to disburse VND 235 billion (USD 9 million) to its associate investments related to new IP projects in Binh Phuoc including Nam Dong Phu Extension Industrial Park (480ha) and Minh Hung 3 Extension Industrial Park (577.53ha).
- We saw a positive outlook for the long-term horizon in NTC due to its new growth engine, NTU-3 project, and its investment portfolio. All of them are recorded at the historical cost, which does not reflect the real accumulated earnings from these investments, as well as fair value for the stable dividend during the current years. In addition, some of these are exposed to the new industrial park projects, which could add additional value to NTC’s investment portfolio. Besides, a healthy balance sheet will help NTC maintain an annual cash dividend of at least 6,000 VND/share for the coming year.
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