- 2023-12-22T00:00:00
- Company Research
- We reiterate our SELL rating for DIG but increase our target price by 19% to VND18,200/share. DIG’s share price has increased 80% YTD due to positive investor sentiment towards DIG’s bond repurchases and the State Bank of Vietnam’s (SBV) policy rate cuts, but we believe it has run ahead of fundamental progress.
- Our higher target price is mainly due to (i) the removal of our previous 20% RNAV discount, (ii) applying a DCF valuation for the Vung Tau Centre Point project and (iii) rolling forward our target price horizon to end-2024. These are partially offset by excluding Logistics Cai Mep from our valuation, and our 1.8-ppt higher WACC assumption.
- We forecast 2023F NPAT-MI of VND125bn (USD5.1mn; -13% YoY) which is mainly supported by ongoing handovers at the Nam Vinh Yen project and the start of sales recognition at the Vi Thanh project in Q4 2023F. We lower our 2023F NPAT-MI forecast by 37% as we reduce our projection for property handovers following weak 9M 2023 results, which is partly offset by higher financial income.
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