Title MBB_BUY TP 28,413 VND_Upside 28.6%_Update 2018 business result_BSC Company Update
Report Type Phân tích công ty
Source BSC
Industry Financials
Bussiness MBB
Detail Date : 22/03/2019
Total pages : 6
Language : English
File Type : .PDF
FileSize : 889 Kb
Download: 133
Download
Vote (You must be logged in to vote)
Short Content
Valuation
We recommend to BUY with MBB shares with a target price of VND 28,413 / share, upside 28.6% by valuation method P / B = 1.5x. MBB is our favorite stock with high NIM advantage and good asset quality. 
 
Forecast of business results 2019. 
BSC forecasts that MBB will record TOI and PBT at VND 23,057 billion (18% yoy) and VND 9,538 billion (+ 22.8% yoy) with the assumption (1) Parent bank credit growth reached 14%, MB Shinsei credit growth + 100% yoy, (2) NIM reached 4.61% yoy in 2019 due to continuing to take advantage of low-cost sources and shifting trend to retail lending, (3) NPL = 1.35%, the rate of bad debt reached 115% , (4) LDR = 80%. 
 
Investment Risk
Bad debt increased due to disbursement pressure and operation of Mcredit.
 
Business update (Refer to page 2 for details) 
2018 business results. In 2018, MBB recorded TOI and PBT at VND 19,539 billion (+ 40.9% yoy) and VND 7,767 billion (+ 68.3% yoy). 
TOI increased strongly, + 68.3% yoy due to strong growth from (1) Net interest income + 30% yoy, (2) Non-interest income (NII) + 87% yoy and currently accounts for about 25% of TOI
Operating expenses + 45.6% yoy, CIR increased, reached 44.7% (same period 43.3%) due to (1) number of employees + 18% yoy, (2) average employee salary + 14.8% yoy. 
Bad debt + 27.9% yoy, NPL reached 1.26% (1.15% in the same period of 2017), according to our assessment, due to MB Shinsei's loan expansion. (lower than bad debt of the whole industry = 1.65%). 
MBB is currently buying 108 million treasury shares - 5% of the market shares (expected to use about VND 2,000 billion from undistributed EAT + other equity). This will reduce the number of shares circulating in the market, which many investors fear when investing in MBB shares.