Investment Recommendation

CTD_TP 97,900_Upside 28__After rain comes sunshine_BSC_Vietnam company update

Date

06/12/2021
Language

Tiếng Việt
Number of Downloads

211

Detailed report

VALUATION

We recommend BUY for CTD with target price of VND 97,900/share, upside +28% compared to price on December 3, 2021 by P/B method and 15% discount

FORECAST OF BUSINESS RESULTS

BSC forecasts CTD's revenue and net profit in 2022 will reach VND 16.118 billion (+61% YoY) and VND 716 billion (+230% YoY), EPS fw = VND 9,026 and P/E fw=8.5, P/B fw= 0.67.

INVESTMENT THESIS

§ Corporate restructuring begins to show results in 2022.

§ Recovered from low base, high new contract value and improved profit margin.

§ Positive outlook of construction industry in medium and long term.

§ Attractive valuation relative to the industry.

RISKS

§ The Covid-19 epidemic will affect construction work.

§ High cost of raw materials.

§ Risk of provisioning comes from receivables from projects from the old management period.

COMPANY UPDATE

9M2021 business results: CTD's net revenue and NPAT in the first 9 months of 2021 reached VND 6,189 billion (-39.9% YoY) and VND 87 billion (-76% YoY) respectively due to (1) the epidemic affecting construction work, (2) high cost of raw materials and (3) provisioning for short-term bad debts reached VND 55 billion (12.3 times higher than the same period last year)