Yuanta - BCG: Real estate segment to lead the growth in 2022


Recommendation: BUY

Closing price (VND): 24,900

Target price (VND): 30,324

Upside: +22%

Exchange: HOSE

Sector: Special Finance (ICB: L4)

4Q21 Results Update

BCG’s 4Q21 net revenue reached VND 685bn, rocketed by +221% YoY while 4Q21 PATMI reached VND 98bn, down by -41% YoY. The YoY increase in revenue was driven by construction contracts and services; while PATMI declined due to sharp increase in interest expenses and higher minority interest.

Bright outlook for 2022

Real estate revenue will be booked as BCG completes the handover at Malibu Hoi An and Hoi An D’or projects. Besides, BCG plans to launch many new projects and the left-over of projects in 2022, when COVID-19 pandemic is contained.

Renewable energy output volume is expected to grow by +51% YoY as 1) improved efficiency at current projects and 2) the additional capacity of 114MWp at Phu My project has come into operation.

2022 results forecasts

For 2022, we forecast BCG’s 2022F net revenue to reach VND 5,842bn (+125% YoY) and NPAT to reach VND 1,591bn (+63.5%).

Recommendation and Valuation

We recommend BUY on BCG with the target price of VND 30,324 per share, implying +22% potential upside.

Risks to our call are 1) longer-than-expected real estate project development and selling process, and 2) delayed incentive policies for renewable engery (such as wind and solar power).

See full report via this link: BCG-4Q21