Title DGC_BUY_TP 233,000_Benefit from high anchor export prices_BSC Company Update
Report Type Phân tích công ty
Source BSC
Industry Health Care
Bussiness DGC
Detail Date : 12/04/2022
Total pages : 11
Language : English
File Type : .PDF
FileSize : 603 Kb
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Short Content

Valuation

We maintain our BUY recommendation for DGC stock with a 2022 target price of VND233,000,+31% from the March 3, 2022 price of VND177,600 due to adjusted business forecast (core segment) of the company. in 2022 (+55% compared to the latest forecast) due to the adjustment of export prices with the expectation of high anchor commodity prices in 2022 (+10% compared to the last report).
 
Forecasting business results
  • BSC forecasts revenue and profit after tax (core business) in 2022 to reach 11,605 billion (+22% YoY) and 3,851 billion (+53% YoY). EPS FW 2022 = 22,200 VND, PE FW 2022 = 8.0 times. 
  • BSC forecasts RNAV value of Real Estate Project 44 Duc Giang at 349 billion.
Outlook for 2022
  • Continuing to benefit from high anchored commodity prices.
  • Production costs continue to be reduced thanks to self-reliance in Apatite ore sources.   
Risks
  • Policy risks related to the environment.
  • Risk of increasing input costs (coal costs). 
 
Business Update
  • Business results in 2021 grow strongly. Revenue and profit after tax reached 9,550 billion (+53% YoY) and 2,514 billion (+165% YoY). Gross profit margin increased sharply to 33.3% from 23.7% over the same period.
  • BSC believes that the strong growth in business results comes from (i) The selling prices of all products have increased according to world prices: The price of yellow phosphorus doubled; Fertilizer prices increased by 82% YoY (i) Costs were partially reduced by going into ore mining at the site 25.