Title CTI_BUY_TP 30,80_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness CTI
Detail Date : 12/04/2022
Total pages : 15
Language : English
File Type : .PDF
FileSize : 1402 Kb
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Short Content
VALUATION
We recommend BUY stock code CTI with a target price of 30,800 VND/share, upside +23.1% compared to the price on March 28, 2022 according to the partial valuation method (SoTP).
 
BUSINESS PERFORMANCES FORECAST
BSC forecasts that  net revenue and PAT in 2022 will reach VND 1,014 billion (+33% YoY) and VND 98 billion (+32 times higher than 2021), EPS fw= VND 1,625/share and P/E fw=15.8x, P/B fw= 1.52x.
 
INVESTMENT THESIS
  • BOT toll-fee projects fully operational and no longer interrupted by the epidemic are expected to bring stable and good cash flow for many years to come.
  • Benefiting from public investment in Dong Nai because (1) the construction segment has a high probability of winning bids thanks to its experience in developing transport infrastructure, (2) the construction stone segment has only exploited 25% of its capacity. There is still plenty of room for growth.
  • High growth prospect from 2023 thanks to (1) implementation of CTI Diamond Center residential project (10.4 ha) and Tan An industrial cluster (49 ha), (2) land fund of Phuoc Binh Industrial Park - Urban Area (658 ha) secured for long-term development.
 
RISKS
  • BOT Highway 91 T2 slow compensation
  • Progress of project implementation of CTI Diamond Center and Phuoc Binh Industrial Park - Urban Area is slower than expected.

BUSINESS UPDATE

The business results in 2021 were less positive when the net revenue and PAT for the whole year only reached VND 762 billion (-17% YoY) and VND 3 billion (-97% YoY) respectively due to (1) the epidemic in the southern provinces affected the business segment. BOT toll collection, (2) low revenue and GPM of construction segment due to Tam Hoa Social Housing implementation as well as most of the contract value were already recorded in 2020, (3) high base 2020 from transfer Tan Cang 8.