Some stocks to watch on October 2

► Stock market forecast 2/10: The market will continue to increase

Market-appropriate recommendation for VEA stock

Vietcap Securities Company (VCSC) continues to maintain our market-inclusive rating and keep our target price unchanged for Vietnam Engine and Agricultural Machinery Corporation (VEA). VCSC reduces our 2024-28 profit after tax (NPAT) forecast after minority interests by 1% (-3%/0%/1%/2%/4% for our 2024/2025/2026/2027/2028 NPAT forecast).

VCSC forecasts the compound annual growth rate (CAGR) of passenger car and two-wheeler sales to be 14%/5% respectively in the 2024-29 period, as VCSC believes that the long-term growth prospects of the automobile industry in Vietnam will be quite positive.

Some stocks to watch on October 2 (Illustration: KT)

While VCSC appreciates the company’s broad exposure to Vietnam’s two-wheeler and four-wheeler markets, along with its attractive dividend, VEA is trading at a trailing P/E of 9.4x, which is higher than its 10-year average trailing P/E of 8.6x.

Buy recommendation for PDR stock

BIDV Securities Company (BSC) raised its recommendation from hold to buy for shares of Phat Dat Real Estate Development Joint Stock Company (PDR) after the stock experienced a sharp correction of 43% from its peak in April 2024.

The upcoming business outlook has begun to turn positive as the company is expected to launch two key projects within the next year, including Bac Ha Thanh Urban Area in the fourth quarter of 2024 and Binh Duong Tower in the first half of 1H2025, although the launch of the projects is slower than initially expected due to delays in policy issuance.

Some stocks to watch on October 2 (Illustration: KT)

Compared to the latest report, BSC adjusted the target price down by 16% to VND26,400/share (upside +17.3%) due to the impact of additional issuance to existing shareholders at a ratio of 5.5:1, the target P/B decreased from 1.8x to 1.5x for tourism projects due to the risk that legal completion of these projects may be delayed longer than initially expected, adjusted the opening sale schedule to 2025, reduced the selling price from VND40 million/m2 to VND37 million/m2 and increased land use costs at the Binh Duong Tower project.

In 2024, BSC maintains its forecast for the contribution of the core real estate business segment at the Bac Ha Thanh project and increases its profit forecast by 26% thanks to extraordinary income from the 25% divestment of BIDICI Investment JSC in the second quarter of 2024. Accordingly, net revenue will reach VND 2,656 billion (up 330% compared to the previous year) and profit after tax - minority shareholders will reach VND 836 billion (up 22%).

In 2025, BSC adjusted down its forecast for revenue by 55.7% and profit after tax - minority shareholders by 50.4% compared to the previous report, reaching VND 3,628 billion (up 37% year-on-year) and VND 741 billion (down 11% year-on-year) respectively as the progress of Binh Duong Tower implementation was slower than expected, contributing to business results still mainly from the Bac Ha Thanh project while Binh Duong Tower started to be handed over from 2026. If excluding extraordinary income from BIDICI divestment in 2024, net profit from core business recorded an increase of 17%.

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-210-post1125442.vov