Some stocks to watch on September 20

Stock market commentary September 20: VN-Index may fluctuate in the range of 1,270 - 1,275 points

Positive recommendation for PVD stock

Vietcap Securities Company (VCSC) has revised down the target price for PetroVietnam Drilling and Well Services Corporation (stock code: PVD) by 14% to VND30,800/share but maintained our positive recommendation as PVD's stock price has fallen by 15% in the past 3 months. Our lower target price reflects a 14% reduction in our 2024-2028 net profit after tax (NPAT) forecast after minority interests (MINI) of the parent company (CEO) (-9%/-26%/-13%/-12%/-12% for 2024/2025/2026/2027/2028 forecasts, respectively).

VCSC revised down its forecast for total NPAT after reporting minority interest due to VCSC reducing its forecast for well-related service revenue and lower earnings from associates based on 1H24 results and VCSC delaying the Block B project commencement assumption from mid-2024 to late-2024. VCSC increased its operating expense forecast by 2% based on 1H24 results and delayed its assumption for the acquisition of PVD's used jack-up rig, shifting the income contribution from early 2025 to mid-2025.

Some stocks to watch on September 20 (Illustration: KT)

VCSC forecasts 2025 NPAT after MI core/reported to increase by 45%/58% YoY, driven by a 7% YoY increase in the average jack-up (JU) day rate forecast, strong growth from the well services segment and VCSC’s expectation that the USD/VND exchange rate will not increase in 2025. VCSC expects domestic exploration and production (E&P) activities to enter a new growth cycle in 2H24, driving double-digit earnings growth from 2025 onwards, with well-related services and associates benefiting, along with further improvements in JU day rates in the tightening Southeast Asian market.

Neutral recommendation for FPT stock

KB Securities Vietnam (KBSV) said that the revenue of FPT Corporation (stock code FPT) in the second quarter of 2024 reached VND 15,246 billion (up 22.11% over the same period), the corresponding gross profit margin reached about 37.06%; profit after tax reached VND 2,283 billion (up 23.07%). In the second quarter, FPT's information technology business segment in foreign markets witnessed a sharp increase in new sales of 76.6%, reaching VND 8,853 billion, thereby helping the total revenue of the segment reach VND 7,574 billion (up 30.76%).

Newly signed revenue reached VND 18,671 billion (up 22.4%), mainly because the Group has pushed forward the signing of new contracts to the end of 2023. In the first 6 months of 2024, FPT continued to record many large orders from foreign markets, winning bids for 27 large projects with a scale of over 5 million USD, 2 times higher than the same period last year, mainly concentrated in the Japanese and Asia- Pacific markets.

TheEducation & Investment segment will continue to maintain its growth momentum in the first half of 2024, bringing in revenue of VND 3,017 billion (up 32%) and pre-tax profit of VND 987 billion (up 20%). By steadily investing CAPEX in the education segment in the coming years, while improving the quality of education, FPT is able to maintain and attract the number of new students, thereby maintaining business growth.

Based on FCFF and P/E valuation, business prospects as well as considering possible risks, KBSV recommends neutral for FPT stock. Target price is 142,800 VND/share.

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-209-post1122631.vov