- We issue a Non-Rated report for PVB with a fair value of VND39,700/share. We have high regard for PVB as we believe significant earnings growth from 2025-27F when new domestic oil & gas projects, including the Block B gas field, officially break ground in H2 2024.

- We like PVB due to (1) its pure-monopoly position in the market of pipeline coating, (2) its European-standard production capability ranging from 100km to 480km p.a., and (3) its proven track record with an accumulated backlog of VND5.6tn.

- During 2013-15, PVB had a large workload with total revenue of VND2.4tn, resulting in reported NPAT-MI of VND281bn. Management guides that PVB is to secure a pipeline coating contract worth USD100mn (VND2.5tn). Based on this, we project total revenue of VND3.2tn and NPAT-MI of VND519bn in 2025-2027 (1.8x vs 2013-15 period).

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