Buy recommendation for MSN stock
Vietcap Securities Company (VCSC) maintains the target price at VND102,800/share and maintains a buy recommendation for MSSN shares of Masan Group Corporation.
VCSC reduces our net debt forecast in the SoTP valuation for MSN by 20% to VND24,000 billion as the company has received the full USD250 million investment from Bain Capital in April 2024 and is expected to receive the full USD134.5 million from the sale of 100% of HC Starck (HCS) to Mitsubishi Materials Corporation (MMC) by the end of FY2024. VCSC also adjusts the valuation of Masan Consumer Corporation ('MCH UpCOM') by 2% to reflect better-than-expected business results in 1H24. These positive factors are entirely driven by a 5% increase in the number of shares in our target price calculation, to reflect the potential dilution from Bain's 5% ownership in MSN through convertible preferred shares.
VCSC has revised up MSN's 2024 core net profit after tax (NPAT) after minority interests (MI) by 16%, as VCSC has revised up interest income by 14% to reflect 1H24 results. VCSC has maintained its 2025-2026 core NPAT after minority interests forecast almost unchanged.
Market-appropriate recommendation for DGW stock
VCSC reduced its target price for Digital World Corporation (stock code DGW) by 3% and maintained a market-matching recommendation.
VCSC’s lower target price mainly comes from our 7% reduction in our 2024 NPAT after MI forecast, due to VCSC’s 8% reduction in our 2024 non-ICT sales forecast. This leads to VCSC reducing our 2025-2027 NPAT after MI forecast by 5% per year.
VCSC still believes that DGW's valuation is reasonable with a 2025 projected P/E of 16x and a 3-year PEG of 1x.
Recommendation to watch for GMD stock
According to DSC Securities Company, in 2024, Gemadept Corporation (stock code GMD) will record revenue of VND 4,333 billion (up 13% over the previous year), after-tax profit of VND 1,448 billion (down 43%).
With the expectation that the Vietnamese seaport industry will continue to grow well in the coming period, the planned infrastructure projects in Hai Phong and Cai Mep - Thi Vai will soon be completed and put into operation, the profit of the joint venture will increase sharply with the main contribution from Gemalink and SCS. DSC estimates the target price of GMD in 2024 to reach VND 85,000/share.
► Stock market commentary August 20: VN-Index may test the support zone of 1,253 - 1,256 points
Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-208-post1115454.vov
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