PTB [OUTPERFORM +14.9%] - Wood segment to lead earnings recovery in 2024 - Update
  • 2024-07-09T00:00:00
  • Company Research

 We increase our target price (TP) for PTB by 11% to VND80,700/share but downgrade our rating from BUY to OUTPERFORM because PTB’s share price has rallied 16% over the last four months.

- Our higher TP is due to (1) a 1% increase in our 2024-26F aggregate NPAT-MI forecast with respective changes of -6%/2%/1% in 2024F/25F/26F, (2) rolling our TP horizon forward from end-2024 to mid-2025, and (3) increasing our target P/E multiple from 12.5x to 13.2x.

- PTB’s Q1 2024 NPAT-MI grew 42% YoY setting an optimistic tone for 2024. However, profits trailed our previous expectations across segments. We assume a slower recovery in wooden furniture demand, while we are more optimistic on the prospects for stone exports as PTB’s quartz factories ran at 87% utilization in Q1 2024 (vs our previous 2024F forecast of 80%).

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