Some stocks to watch on March 10

VOV.VN - Securities companies have just made recommendations on some stocks to watch for today's trading session, March 10.

► Stock market commentary March 10-14: Possibility of a correction to the support zone of 1,290 - 1,310

Neutral recommendation on BCM stock

According to Vietcap Securities Company (VCSC), Becamex IDC Corporation (BCM) is a prominent domestic industrial park (IP) developer in Vietnam with land funds mainly located in Binh Duong province, one of the leading provinces attracting FDI in Vietnam. BCM owns a large land fund, including 950 hectares of commercial IP land and 1,200 hectares of commercial urban area (UU) land by the end of 2024.

BCM also has a significant presence in the industry through joint ventures/associates, including VSIP (Vietnam's largest industrial park developer with a land fund of approximately 11,600 hectares; BCM owns 49%), BW Industrial (Vietnam's leading logistics developer with over 1,000 hectares of industrial/logistics land fund; BCM owns 24%), Becamex Binh Phuoc (4,668 hectares; BCM directly owns 40%) and Becamex VSIP Binh Dinh (1,374 hectares; BCM owns 40%).

Some stocks to watch on March 10 (Illustration: KT)

Our FY25/26 forecast for net profit after tax (NPAT) growth after minority interests (MINI) is driven by a recovery in Binh Duong residential land sales as regional infrastructure continues to develop; associate income to increase by 17%/18% in FY25/26 due to earnings growth from VSIP and BW Industrial, and the launch of Cay Truong IP (total land area of ​​700 ha) and the remaining phase of Bau Bang Expansion IP (total land area of ​​320 ha).

BCM is currently trading at a high P/B of 4.0x in the latest quarter, compared to the median P/B of some industry peers at 2.1x. VCSC believes that BCM currently has a reasonable P/B due to its leading position in the industrial park development sector, large land fund ownership as well as valuable affiliated companies.

Positive recommendation for CTG stock

Saigon - Hanoi Securities Company (SHS) recommends positively for CTG shares of Vietnam Joint Stock Commercial Bank for Industry and Trade ( Vietinbank ) based on the following investment thesis: Credit growth is forecast to continue to be positive in the period of 2025-2026. In 2024, CTG's credit growth will reach 16.88%, higher than the industry average, supported by retail credit and FDI enterprises. The trend of promoting investment in basic construction and interest rate competition among banks supports credit growth of the group of State-owned commercial banks.

Some stocks to watch on March 10 (Illustration: KT)

Asset quality continues to improve. The NPL formation rate in 2024 will decrease to 1.6% from 2.2% in 2023. The NPL ratio at the end of 2024 will reach 1.25%, the NPL coverage ratio will be 170.7%, the second highest in the industry. CTG's credit costs are on a downward trend, down to 1.7% in 2024 from a peak of around 1.8-2% in the previous 3 years. SHS sees a positive trend in asset quality and forecasts that credit costs will continue to decrease in 2025.

Pre-tax profit in 2025 is forecast to increase by 25%, supported by continued credit expansion and lower credit costs after the period of increased bad debt provisioning in 2023-2024.

Expected to be approved by the State Bank to increase charter capital from retained earnings in 2025. CTG currently plans to pay dividends in shares from retained earnings from 2023 and earlier with a total amount of VND 37,905 billion, equivalent to 70.59% of charter capital.

Attractive stock valuation compared to its position and operating efficiency. After an upward trend since the beginning of the year, CTG is trading at PB 1.5x, 11% higher than the average PB in the period 2019-2025, but still significantly lower than the group of State-owned banks. At the current price, PB forward 2025 will decrease to 1.23x, an attractive level for investment.