ITC_BUY_TP 27,400_Upside 26.8__Attractive Valuation_BSC_Vietnam company update

 VALUATION

We recommend BUY ITC with target price of VND 27,400/share, upside +26.8% compared to price on 11/26/2021 by P/B method and 20% discount to price.

FORECAST OF BUSINESS RESULTS

BSC forecasts that ITC's revenue and NPAT in 2021 will reach VND 705 billion (-24% YoY) and VND 137 billion (+1% YoY), EPS fw = VND 1,724 and P/E fw=13.0, P/B fw= 1.1.

INVESTMENT THESIS

§  ITC is trading at an attractive valuation compared to its peers.

§  Implementation of key projects on schedule and positive signals from long backlog projects.

RISKS

§  The Covid-19 epidemic will affect the construction, sales and leasing of shopping centers and hotels .

COMPANY UPDATE

§  9M2021 business results: Revenue and NPAT in the first 9 months of 2021 of ITC reached VND 350 billion (+1% YoY) and VND 62 billion (-11% YoY) respectively, mainly contributed from the apartment business at Terra Royal .