Viet Nam JS Commercial Bank For Industry And Trade – Downgrade from Hold to Underperform (CTG : HSX – Bank)

Viet Nam JS Commercial Bank For Industry And Trade – Downgrade from Hold to Underperform (CTG : HSX – Bank)

 

  • Vietinbank announced unexpectedly low FY2018 targets at its EGM.

 

  • The FY2017 earnings distribution plan was approved, excluding however a decision regarding dividends.

 

  • Basel 2 will be applied from the beginning of FY2019.

 

  • CTG proposed and got approval from shareholders to restructure the Vietinbank Tower project.

 

  • At the EGM shareholders approved the new BOD and management members.

 

  • For FY2018, HSC revises down our forecast and now calls for a PBT decrease of 25.8% y/y to only VND 6,831 billion, from our previous forecast of VND 10,500 billion (+14.06% y/y).

 

  • For FY2019, HSC’s forecast call for a PBT increase of 10.6% to VND 7,555 billion.

 

  • HSC sees fair value at VND 22,000, which would value the bank at a P/B of 1.25x.

 

  • Downgrade to Underperform.

 

 

 

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