Buy recommendation for CTR stock
Smart Invest Securities Company (AAS) recommends buying shares of Viettel Construction Joint Stock Corporation (CTR), target price of VND 137,000/share based on investment thesis: Strong increase in infrastructure rental revenue: As of August 2024, CTR owns 8,447 BTS stations (+57% over the same period), of which 335 are shared stations (+101% over the same period), the target by 2030 will reach 21,975 BTS stations, equivalent to about 3 times more than the present.
In September 2024, Typhoon Yagi caused significant damage to telecommunications infrastructure in the North, including more than 6,000 BTS stations losing communication/power. CTR has been participating in storm recovery.
The construction sector is considered to have great potential, especially the B2C sector. AAS expects the housing construction sector to lead growth thanks to a large backlog from 2023 and a newly signed backlog in 2024.
CTR signed a number of notable construction contracts/projects in the first 8 months of the year, such as Trung Minh B Urban Area (188 billion VND, Hoa Binh City), Mong Ban high-end resort (181 billion VND, Lao Cai Province), Trung Minh A Urban Area (158 billion VND, Hoa Binh City) and Gem Sky World (68 billion VND, Dong Nai Province).
The operations segment remains the core. In 2024, CTR expanded its fixed broadband network operations in Mandalay Province, Myanmar. In 2023, CTR began deploying this segment in Naypyidaw Province, Myanmar. However, AAS still sees significant political risks in this country due to the ongoing civil war (since 2021). Currently, the overseas market contributes 20%-30% of revenue to this segment.
Viettel won the auction for the golden frequency block for the 5G network. Viettel won the auction for the 2,500 - 2,600MHz frequency block, which is considered the golden frequency block of the 5G segment due to its superior performance compared to other frequency blocks. This will help the value of CTR's future BTS stations to be higher than that of other network operators owning other frequency blocks, thereby enhancing the competitive advantage of the enterprise in the BTS station leasing segment.
HSG's target price is 27,000 VND/share.
According to BIDV Securities Company (BSC), investment thesis for Hoa Sen Steel Group Corporation (HSG) shares: P/B FWD 2025 valuation = 1.02x, approaching the average valuation range of HSG in a steel cycle (0.7x - 1.2x).
In addition, consumption output is expected to recover in 2025 (up 10-15% compared to the previous year), led by the domestic market recovering thanks to the return of the real estate market, the Ministry of Industry and Trade approved the policy of imposing anti-dumping tax on cold-galvanized steel and color-coated steel from China.
In 2024, BSC forecasts that HSG will record net revenue of VND 36,868 billion (up 15%), profit after tax - minority shareholders of VND 731 billion (up 3,096%), equivalent to EPS FWD 2024 = VND 1,222/share, P/E FWD 2024 = 17.4x, P/B FWD 2024 = 1.1x with output of 1.8 million tons (up 28%), gross profit margin of 11.2%.
In 2025, BSC forecasts that HSG will record net revenue of VND 39,834 billion (up 8%), profit after tax - minority shareholders of VND 814 billion (up 11%), equivalent to EPS FWD 2025 = VND 1,360/share, P/E FWD 2024 = 15.7x, P/B FWD 2024 = 1.0x, with output of 1.99 million tons (up 10%), gross profit margin of 11.2%.
BSC assessed positively in October and gave a target price for HSG at VND 27,000/share.
>> Stock market commentary October 15: The market tends to fluctuate above the 1,283 point area
Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-1510-post1128371.vov
Comment (0)