Viglacera Corporation – JSC​ – ​Outperform​ (VGC : HNX​ – ​Construction & Materials)

Viglacera Corporation – JSC​ – ​Outperform​ (VGC : HNX​ – ​Construction & Materials)
 
•     VGC (OUTPERFORM, FV: VND 20,600, 2019 P/E of 14.3x) released relatively poor earnings for FY2018, showing net sales of VND 8,984 billion (-2.3% y/y) and PBT of 843 billion (-7.8% y/y), respectively fulfilling 98.7% and 88.7% of the Company’s full-year targets.
 
•     For Q4 only, however, performance improved with net sales amounting to VND 2,610 billion (+15.3% y/y), while NPATMI increased slightly by 2.0% y/y to VND 101 billion.
 
•     Drop in GPM from 23.3% in 2017 to 22.4% mainly  due to a considerable drop in the GPM for construction material segment given fierce competition.
 
•     NPATMI dropped 6.4% y/y to VND 562 billion, with the Company’s EPS equaling VND 1,253 translated to P/E of 15.3x.
 
•     Guidance from the Company suggests relatively high targets for FY2019 with 18.6% y/y and 27.6% y/y growth in revenue and PBT respectively.
 
•     For FY2019, our latest forecast calls for NPATMI of VND 617 billion (+9.8% y/y), generating a forward EPS of VND 1,375, equivalent to a FY2019 P/E of 13.9x.
 
 
 
 
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