Report
Viet Dragon Securities
Hung Le

Analyst Pin-board PHR - Land handover deals will be fulcrums for earnings

  • In 9M2022, PHR posted VND 1,131 billion in revenue (-11.6% yoy), NPAT-MI came at VND 495.36 billion (+45.6% yoy). In which, PHR’s Q3 revenue reached VND 522.75 billion (+0.19% yoy), NPAT-MI was VND 122 billion (-15.86% yoy). Specifically, the performance of rubber segment, wood processing and trees liquidation was not so favorable. However, the income from compensation is the main pillar for PHR's profit.
  • PHR's prospects are still positive thanks to (1) interests from VSIP deal, (2) recovery of rubber segment on the low base of this year when the demand from the Chinese market bounces back, (3) as well as the landing handover compensation of other potential projects such as Lai Hung, solid waste treatment project.
  • We maintain a positive long-term view of PHR. Target price adjusted down by 32,3%  to VND 59,800/share due to (1) adjustment in the discount rate that is more reasonable under the context of interest rate hiking pressure, (2) delaying timeline and decreasing probability of being approved as an investor of Ip projects including Tan Lap 1 and Tan Binh Expansion. (3) Adjustment in the scale of VSIP 3 project in a way that is more reasonable. In which, VSIP could lease on area that has been transferred from PHR, the clearance of the remaining area will be more difficult as it has to negotiate with many other parties. Combined with an annual cash dividend of VND4,000/share, the total expected return is +70.1% (based on the closing price as of October 26, 2022).

 

27/10/2022 7 EN
Underlying
Phuoc Hoa Rubber
Phuoc Hoa Rubber

Phuoc Hoa Rubber Joint Stock Company is a Vietnam-based company active in the rubber industry. The Company is engaged in rubber plantations and the manufacturing of rubber products. It processes latex and manufactures basic rubber products, such as Standard Vietnamese Rubber (SVR) products. The Company is also involved in the processing and trading of rubber wood harvested from its rubber plantations. In addition, it is engaged in the operation of gasoline stations. Other activities include construction and real estate operations.

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VN000000PHR1 Hochiminh Stock Exchange Vietnam
Provider
Viet Dragon Securities
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.

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Analysts
Hung Le

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