- We maintain our BUY rating for SZC and raise our target price (TP) by 3% to VND40,500/share.
- Our higher TP is mainly due to (1) factoring the Chau Duc golf course and BOT 768 projects into our valuation, (2) a higher P/B valuation for the Chau Duc UA to reflect its increased book value and (3) rolling our TP horizon from end-2023 to mid-2024. However, these positive impacts are partially offset by our lower valuation for the IP segment as we expect slower sales progress.
- For 2023F, we cut our revenue and NPAT-MI forecasts by 40% and 29% to VND825bn (USD35mn; -4% YoY) and VND229bn (USD10mn; +16% YoY), respectively. We expect stronger growth for NPAT-MI due to (1) GPM expansion for the IP segment thanks to land price appreciation and (2) an increasing contribution from the Huu Thanh UA project that has a higher margin (80% in 2022).