VHC – Earnings Review 4Q2019 [BUY +18.4%] U.S. rebound to offset China slowdown
In 2020, we expect the rebound of the U.S. market to offset the 2019-nCoV-induced slowdown of Chinese one. Moreover, the recent price plunge has made VHC share valuation attractive. We revise downward VHC target price to VND37,800 by the end of 2020 but maintain BUY recommendation. Including VND2,000 cash dividend, total 1-year expected return for Vinh Hoan’s share is 18.4%.