Title | DBC_BUY_TP 31,800 VND_Upside 25%_EXPECTATIONS FROM THE BOTTOM GO UP_BSC Company Update_030822 |
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Report Type | Phân tích công ty |
Source | BSC |
Bussiness | DBC |
Detail |
Date : 04/08/2022 Total pages : 9 Language : English File Type : .PDF FileSize : 1085 Kb Download: 152 Download |
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Short Content |
PRICING PERSPECTIVES We recommend BUY for DBC with a target price of VND 31,800/ SHARE for 2023, upside 25% compared to the price on 03/08/2022 with P/E method with a target P/E of 7.5 times. BUSINESS RESULT FORECAST BSC expects DBC's net revenue and NI from the core contract in 2022 to reach VND 13,159 billion (+22%YoY) and VND 557 billion (-28%YoY), respectively, lower than 39% of DBC's early 2022 profit on the basis of (1) adjusting business results to decrease -96%YoY of 1H.2022 (2) adjusting TB pig prices to VND 61,300 equivalent to the average pig price of 2021, respectively, but gross profit margin still suffered a decline from 17.1% to 13.8% due to a sharp increase in the cost of hogs and input materials of feed prices; In 2023, we expect DBC's net revenue and NI from the core contract to reach VND 15,854 billion (+21%YoY) and VND 1,346 billion (+142%YoY), equivalent to EPS FW= VND 5,256, P/e FW= 4.9x due to (1) gross profit margin increasing from 14% to 18% due to an 8% increase in hog prices but a decrease of -4%YoY in hog prices; INVESTMENT THESIS
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