Investment Recommendation

CTR_BUY_TP 94,500 VND_Upside 16%_Viettel Construction Joint Stock Company_BSC Company Report

Date

28/07/2022
Language

Tiếng Việt
Number of Downloads

267

Detailed report

VALUATION

We recommend BUY for CTR stock with a target price of VND94,500, (+16% compared to May 27, 2022) for 2022 based on two methods FCFE and PE with a weight of 50 %/50%.

Forecast business results in 2022

BSC forecasts that CTR's revenue and profit in 2022 are estimated at 8,578 billion VND (+15.2% YoY) and profit after tax at 462 billion VND (+23.2% YoY). EPS FW 2022 = VND4,875. PE FW 2022 = 15.8 times.

Business plan in 2022

CTR targets annual revenue of 8,586 billion VND (+15% YoY) and profit after tax of 414 billion VND (+10% YoY).

Business outlook in 2022

Telecommunications-related business: Telecommunication construction declines due to low new demand; Operating, exploiting and responding to growth information from foreign markets; The rental infrastructure (TowerCo) grew strongly as the company increased the number of stations and improved the sharing rate

Non-telecommunications business: Civil construction is expected to move sideways when the price of construction materials is anchored; The integrated solution has not yet benefited from energy projects.

Risk

- Risks related to doing business abroad

- Risks related to rising construction material prices

Risks related to the progress of 5G deployment in Vietnam

Business Update

At the end of the first quarter of 2022, CTR recorded revenue and profit after tax of 2,001 billion dong (+14.3% YoY) and 89 billion dong (+24.7% YoY) respectively. The slight increase in gross profit margin (to 7.5% from 7.0% in the same period) and a slight decrease in the G&A expense ratio (to 1.9% from 2.0% in the same period) helped to boost profit growth better than revenue.