PVT [BUY +28.6%] - Significant fleet expansion to drive 2024 earnings and beyond - Update
  • 2023-11-03T00:00:00
  • Company Research

- We raise our target price (TP) for PVT by 11% to VND30,300/share and upgrade our rating from OUTPERFORM to BUY. Our higher TP reflects (1) a 6% increase in our aggregate 2023-2027F NPAT-MI (4%/9%/4%/6%/8% in 2023/24/25/26/27F), and (2) the positive impact of rolling our TP horizon to end-2024F. The higher aggregate 2023-2027F NPAT-MI due to new contributions from three new tankers acquired from July to end-October 2023, which outweighs delaying our assumption of the Very Large Crude Carrier acquisition from 2024 to 2025.

- We raise our 2023F reported NPAT-MI by 4% to VND988bn (+15% YoY), primarily due to higher core profits from the transportation segment when we factor in three new tankers. We also forecast 2024F reported NPAT-MI growth by 22% to VND1.2tn, affected by full-year contributions from six new tankers acquired in 2023.

- We forecast 2022-2025F recurring EPS CAGR of 26%, caused by further growth in tonne-miles demand and ~2x YoY capacity growth in 2023, which will boost PVT's transport volume across all segments.

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