Investment Recommendation

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

Ngày đăng

06/12/2021
Security code
CTD
Company

COTECCONS construction
Ngôn ngữ

Tiếng Anh
Number of Downloads

213

Báo cáo chi tiết

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)