PC1 [OUTPERFORM +12.3%] - Nickel sales, Nomura IP to drive earnings rebound - Update
  • 2023-02-20T00:00:00
  • Company Research

- We raise our target price for PC1 by 14% to VND30,100/share but downgrade our rating from BUY to OUTPERFORM as PC1’s share has price increased ~60% over the past three months.  Our increased target price is due to our 9% higher 2023-2027F aggregate NPAT forecast.

- Our higher NPAT forecast is due to our higher projection for the power construction segment’s NPAT and incorporating NPAT from the Nomura Industrial Park (70%-stake subsidiary).

- We forecast 2023F NPAT-MI of VND706bn (+57% YoY), which is bolstered by (1) further earnings growth from the power construction segment, (2) the contribution from the newly-acquired Nomura Industrial Park; (3) 30%-stake associate Western Pacific’s land sales of its Yen Phong Industrial Park, (4) PC1’s nickel sales, and (5) lower FX translation losses YoY.

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