Title | QNS_BUY_TP 56.800_Upside 22.0_OPPORTUNITIES FROM SUGAR INDUSTRY _BSC_Vietnam company update |
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Report Type | Phân tích công ty |
Source | BSC |
Bussiness | QNS |
Detail |
Date : 23/09/2022 Total pages : 0 Language : English File Type : .PDF FileSize : 393 Kb Download: 258 Download |
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Short Content |
VIEWPOINT OF PRICE We recommend a BUY with stock ticker QNS with a target price of VND56,800 – Upside 22% from the closing price on September 23, 2022, following the DCF method with WACC =10%. Based on (1) the positive outlook of the sugar industry; (2) material prices cooled down and (3) healthy financial structure. FORECAST FORECAST OF INCOME STATEMENT BSC expects QNS's revenue and net profit in 2022 to reach VND 8,147 billion (+11%YoY) and VND 1,352 billion (8%YoY), EPS FW = VND 3,637, P/E FW =12.8 times. Revenue growth was mainly driven by (1) revenue from sugar segment up 14%YoY; (2) revenue from soy milk segment up 9%YoY. In 2023, DTT and NPAT will reach VND 8,950 billion (+10%YoY) and VND 1,527 billion (+13%YoY) respectively, mainly from (1) Sugar segment supported in both price and operating efficiency of the house. RE sugar machine increased from 8% CS (2022E) to 13% CS (2023F) (2) Gross profit margin of Soy milk segment improved from 39.7% to 41% thanks to the downtrend in raw material prices. INVESTMENT THESIS ▪ Gross profit margin improved from 2H/2022 thanks to (1) domestic sugar price supported by Decision 1514/QD-BCT dated August 1st, 2022 and (2) soy milk segment: increased selling price in 1H/2022 and the price of raw materials tends to decrease. ▪ Healthy financial structure, stable dividend from 4%-5%/year. Catalyst ▪ Domestic sugar prices are supported by Decision 1514/QD-BCT dated August 1, 2022, applying measures to combat trade remedies for some imported cane sugar products from 5 Asian countries. ▪ Strategic investors and BOM increase their ownership ratio. ▪ Potential comes from investment cooperation with large enterprises. RISK ▪ Fluctuations in world sugar prices and smuggled sugar output increased after Decision 1514/QD-BCT. ▪ Price fluctuations of raw materials due to political instability in the world . |