Title VTP_BUY_TP 145,900VND_Upside 16.7%_Good things for those who wait_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness VTP
Detail Date : 19/05/2020
Total pages : 6
Language : English
File Type : .PDF
FileSize : 1044 Kb
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Short Content

Valuation
BSC maintain our recommendation BUY for VTP stock with new target price of 145,900 VND per share, down 10.2% compared to latest target price (Link) due to adjustment of target PE (20.6 down from 21.0)
2020 Business forecsat
BSC forecast revenue and profit after tax in 2020 respectively of VND 11,358bn (+45.4% YoY) and VND 482bn (+26.8% YoY). EPS fw 2020 reach 7,085 VND, equivalent to PE fw 2020 of 17.6.
Investment risk               
Fierce competition among traditional portal companies and fast delivery start ups.
Business result update
Viettel Post announced first quarter performance with two digit growth. Revenue and profit after tax are VND 2,460bn (+83.6% YoY) and VND 97bn (+26.2% YoY).
Commercial sector (Voso,vn, telecom services, …) post a surprising increase of 5x times in revenue, accounting for 43.7% of revenue, up from 11.9% at the same time last year. Due to barely thin margin of this sector (~0.7%), gross profit margin decreases to 7.3%.
Delivery sector, on the other hand, maintain a stable gross margin. However, revenue growth of 17% was rather disapponting amid coronavirus crisis. It is much lower than our expectation of an overall growth of 37% in 2020.
We thinks that main driver continued to come from the increase of delivered parcels which observed a high growth of 162.2% in February 2020 to reach 10.1mn delivered parcels. 
Viettel Post launched new services (North South express train, MyGo Express) to meet the high demand of customers. In 2019, fast delivery took account of 60% in used service of company.