GVR [OUTPERFORM +18.7%] - Lower valuation to reflect slower land conversion outlook - Update
  • 2022-11-29T00:00:00
  • Company Research

We maintain our OUTPERFORM rating for GVR despite cutting our target price (TP) by 41% to VND16,300/share.

Our lower TP is mainly driven by (1) our 3.2-ppt higher WACC assumption and (2) our more conservative valuation for GVR’s future projects as we value projects that have obtained master development plan approval. These downward revisions are partially offset by the positive effect of rolling our TP horizon forward to end-2023.

We cut our 2022F and 2023F NPAT-MI forecasts by 4.3% and 1.1%, respectively, to mainly reflect our lower average selling price (ASP) forecasts for the natural rubber segment as we believe the global supply will improve while demand is expected to soften over the short term. In addition, we cut our 2024F NPAT-MI forecast by 7.5% as we are now more conservative about GVR launching IP land sales of future projects.

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