Analyst Pin-board PVS – Short-term outlook relies on big projects whereas renewable energy drives long-term potential
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· Although revenue went up strongly thanks to mechanics & construction (M&C) segment, 2Q2022 and 1H’s profit as well dropped compared to the same period last year. In details, revenue in 6M2022 reached VND 7,579 billion (+33.6% YoY), NPATMI in contrast was only VND 223 billion (-24.7% YoY). · In 6M2022, PVS posted a decrease in gross profit margin from 7.3% to 4.4% while G&A expenses rose by 19.7%. · We project that total revenue and NPATMI will come at VND 16,584 billion (+16.8% YoY) and VND 663 billion (+10.3% YoY) for the whole year 2022. Then, 2H 2022 business result will outperform the first half’s. · Currently, PVS is expected to gain large backlog in the M&C segment thanks to Block B project. However, the project's FID has not yet finalized even though it’s expected that FID could be announced in July 2022. The prolonged delay of the project will affect PVS's business results in the next 1 or 2 years as the company has not won many huge backlock projects so far. PVS's long-term potential comes from switching to the renewable energy industry as an investor and general contractor. Hence, we maintain a conservative view on PVS. The target price of the stock is VND21,500 per share. P/E 2022 forward at this target price is 21.1x. |
Petrovietnam Technical Services Corp. Petrovietnam Technical Services Corporation (PTSC) is a Vietnam-based provider of oil and gas related services and equipment industry. The Company provides petroleum storage services and marine transportation services using sea-borne tankers and specialized vessels. It is also involved in the provision of engineering services, geophysical surveying and mapping services and ship repair services. Moreover, it manufactures and installs tanks and gas pipelines. The Company also offers marine port services and offshore facility management and maintenance services. Other operations include the trading of petroleum and other petrochemicals. As of December 31, 2012, the Company was a subsidiary of Vietnam National Oil and Gas Group (Petrovietnam), and it had 13 subsidiaries, three joint ventures, five affiliates, along with six branches.
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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