Title | 20161010_BSC_Vietnam Company Visit Note_EN_DHC_ICB2723 |
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Report Type | Báo cáo chuyên đề |
Source | BSC |
Industry | Industrials |
Bussiness | DGC |
Detail |
Date : 24/10/2016 Total pages : 3 Language : English File Type : .PDF FileSize : 842 Kb Download: 100 Download |
Vote | (You must be logged in to vote) |
Short Content |
We recommend Buy DHC at target price of VND 46,500 per share in the next 12 months (18% upside). On 07th, Oct, 2016, DHC was traded at VND 39,500 per share, equivalent to a P/ E FW of 11.21x and P/ B of 2.03x. 9M2016 positive business result. DHC’s Kraft consumption fell by 16% yoy in 6T2016 because of low quality of OCC materials during salt intrusion. 3Q2016 paper production and consumption recovered sharply, by 6.8% yoy (14,533 tons) and 16% yoy (12,905 tons, respecitvely. Accumulated 9M2016, Kraft paper and cartons consumption reached 30,652 tons (-5% yoy) and 20 million units (+ 33% yoy), respectively. 9M2016 DHC’s net revenue and net income were VND 473 billion (+ 1.3% yoy) and VND 61 billion (+ 23% yoy), respectively. 2016 earning forecast. We believe that 2016 net revenue and net income will reach VND 694 billion (+8% yoy) and VND 94 billion (+17% yoy), respectively, equivalent to 2016 EPS of VND 3,525/share (calculated on the number of current shares outstanding of 25.6 million). Our forecast is based on assumption that Kraft consumption increase by 7% yoy to 54,728 tons, and carton’s sales volume rose by 30% to 29 million units. In 2017, the performance of Giao Long plant No.1 is expected to remain stable because the plant is operated at full capacity. The sales volume of the packaging plant is expected to expand by 15-20% because of a supplemental printer, overtime working and high demand. |