- We upgrade our rating from MARKET PERFORM to OUTPERFORM despite trimming our target price by 5% due to PTB’s share price correcting 23% over the past two months. We cut our target price mainly because we lower our discounted target P/E for PTB’s core business from 9.2x to 8.8x in order to incorporate an increase in our house risk-free rate from 5.5% to 6.0%. 

- We keep our NPAT forecasts almost unchanged as lower projected wood exports are offset by our more optimistic forecasts for stone sales and total G&A expenses.

- We forecast 2022F wood revenue growth of 13% that will continue to outperform Vietnam’s overall wooden furniture exports, which experienced a slight YoY decline in H1 2022. In addition, we forecast 2022F stone sales growth of 15%. These growth rates are from a low base because Vietnam’s manufacturing was disrupted by COVID-19 in H2 2021.

Powered by Froala Editor