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We value VNM using a DCF (70%) and PE (30%) methodology. We maintain our HOLD rating with our target price of VND83,900. Our target price implies a target 2022F PE of 18.9x, which is equal to its peers. The sluggish outlook has been relatively reflected in the share price, VNM has underperformed the market by 20% over the last six months. Therefore, we maintain our Hold rating despite the subdued outlook and cheap valuation. At our target price of VND83,900, the upside is 14.9%.

The input-price volatility caused by the geopolitical tension and the pent-up demand for the energy post-COVID19 would compress the company’s margin in 2022F. We estimate gross margin contraction by 4.4%p from 27.4% in 2021 to 23.0% in 2022F. The 1Q22 NPATMI is forecasted at VND8,900bn, +27.7% yoy.

On April 7th, FPT made an AGM presentation briefing for the 2022F business plan and the long-term business expansion plan. FPT sets 2022F guidance of VND42.4tn revenue (+19% yoy), and VND7.6tn PBT (+20.2% yoy), this growth guidance is similar to 2021. Particularly, per management, the 2022F revenue estimate consists of some key contributors: Technology of VND24.9tn (+21.1% yoy), Telecommunications of VND14,6tn (+14.8% yoy) and Education, Investment & Others of VND2.96tn (32.5% yoy). The 2022F PBT guidance comprises of Technology with VND3,360bn (+19.3% yoy), Telecommunications with VND2,812bn (+17.4% yoy), and Education, Investment & Others with VND1,446tn (+28.4% yoy).

On April 5, VIC released its audited 2021 balance sheet featuring an NPATMI profit of VND367.2bn vs a loss of VND453.7bn in the preliminary report. The 2021 NPATMI in the audited income statement recorded less loss to VND2.5tn vs -VND2.7tn in the prelim result. The Ho Chi Minh Exchange (HSX) removed VIC from the margin list and could add back in Aug after the reviewing VIC's semi-annual financial statement,

On April 2nd, we tuned in to QNS’s AGM session which gave the audience a walkthrough of the upcoming business plan, 2022F guidance, and optimistic long-term strategy. In 1Q22, QNS recorded a volume of milk segment of 54.3mn litters (+13.6% yoy), the revenue of nearly VND877bn (+21% yoy). The growth rate of 1Q22 revenue was high due to hiking average selling price by about 7% yoy in1Q22 and the low base caused by the Covid-19 pandemic in 1Q21.

STK held an AGM session on March 31st to articulate the business plan, coming out with optimistic business guidance. The company targets a VND2,605.7bn revenue, +27.6% yoy and a VND300.2bn NPAT, +7.8% yoy in 2022F. A 15% cash dividend at par will be paid this year. Based on guidance of 2022F profit, 12MF PE is 14.87x and 12MF PB is 3.02x, higher than 2-year median of 11.33x and 1.99x, respectively.

On Mar 31, REE Corp (REE) held the Annual General Meeting. While revenue is expected to soar up to VND9,247bn (+59.2% yoy) in 2022F, NPATMI only edges up 11.1% yoy to VND2,061bn due to the high proportion of M&E in revenue (42.5%) when net margin of M&E is only 5-6%, per management. Based on guidance of 2022F profit, 12MF PE is 14.1x and 12MF PB is 1.6x, slightly higher than the 2-year median of 10x and 1.4x, respectively.

MCM sets conservative FY2022F guidance of VND3,122bn revenue, +6.7% yoy and VND343.5bn NPAT, +7.6% yoy. Per management, the dairy industry is being affected by an inflationary cost, in which, the prices of animal feed, especially concentrate increased by 40-50% yoy, it happened worldwide.

On Mar 29, SZC made an AGM presentation briefing for the upcoming business expansion plan. Key issues covered were the 2022F guidance and their long-term targets. In 2022F, SZC’s earnings guidance retreats by 43.2% yoy despite a flattish revenue growth forecast of 7.3% yoy, per management. Based on management's guidance of 2022F profit, 12MF PE is 42.3 times and 12MF PB is 4.7 times, remarkably higher than the 2-year median of 17.2x and 2.7x, respectively.