PLX report - VIETNAM NATIONAL PETROLEUM GROUP(PLX PETROLIMEX April 14th 2017 INITIAL COMPANY REPORT PLX PROFIT 2016 STRONG GROWTH PLX PETROLIMEX STOCK

PLX report - VIETNAM NATIONAL PETROLEUM GROUP(PLX...

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STOCK INFORMATION (April, 14 th 2016) Exchange HSX Market price (VND) N/A Avg. volume (10d) N/A Market cap (bn. VND) N/A Outstanding shares 1,293,878,081 % foreign ownership 8% EQUITY ANALYST Nguyen Phuong NGUYEN [email protected] +84-4 3936 6425 ext 116 VCBS’ reports system VCBS Bloomberg Page: <VCBS><go> VIETNAM NATIONAL PETROLEUM GROUP (PLX - PETROLIMEX) INITIAL COMPANY REPORT April, 14 th 2017 PLX PETROLIMEX VCBS Research Department PLX: PROFIT 2016 STRONG GROWTH 2016 Earnings: PLX reported 2016 consolidated revenue of VND 123,096 billion, decreasing by 16.21% compared with last year revenue and reaching 91.86% of 2016 target. However, net income in 2016 grew impressively, reaching VND 5,147 billion (+68.35% yoy), while net income of the parent company reached VND 4,669 billion (+71.39% yoy). 2017 Outlook: We believe that 2017 will be a promising year for PLX thanks to the two core businesses: petroleum distribution and petrochemical products, which accounted for 85.71% of PLX’s revenue. VCBS forecasted that in 2017, PLX ’s revenue will reach 143,087 billion VND (+16.24% yoy), net income will reach 6,983 billion VND (+10.84% yoy), and net income attributable to shareholders of the parent company will reach 5,057 billion VND (+8.30% yoy). We forecast 2017's EPS of 3,908 VND (calculated using the expected shares outstanding of 1,293,878,081 shares). Recommendation: PLX is one of the largest corporations in Vietnam with a leading position in the petroleum distribution market. The Group has many competitive advantages including its system infrastructure, transportation and distribution network as well as low business risks thanks to the base price regulation. Given bright outlook, we believe that the fair value of PLX to be 55,691 VND per share . Financial indicators 2013 2014 2015 2016 Total revenue (VND bn) 195,928 206,781 146,916 123,097 +/- yoy (%) -2.45% 5.54% -28.95% -16.21% Net income (VND bn) 1,579 (9) 3,058 5,147 +/- yoy (%) 104.61% -100.58% N/A 68.35% Total Equity (VND bn) 15,635 14,092 16,291 26,423 D/A (%) 72.80% 74.56% 67.69% 57.23% Gross profit margin (%) 4.07% 3.43% 8.74% 11.54% Net profit margin (%) 0.81% N/A 2.08% 4.18% ROA (%) 2.75% -0.02% 6.06% 9.42% ROE (%) 10.10% -0.06% 18.77% 22.19% EPS (VND) 1,476 N/A 2,858 3,976 BVPS (VND) 12,086 10,551 15,225 17,931
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VCBS Research Department Page | 1 PLX INITIAL COMPANY REPORT COMPANY PROFILE Description Vietnam National Petroleum Group (Petrolimex), formerly known as The Oil, Lub and Grease Corporation, which was established in 1956 by the Ministry of Commerce, later known as Vietnam Petroleum Corporation. In 2011, the Prime Minister issued a decision on restructure and equitization of Vietnam Petroleum Corporation. In August 2012, Petrolimex officially operated as a public company. According to SCIC's divestment plan, Petrolimex is scheduled to be listed on the HSX in April 2017 with the trading ticker as PLX. Capital raising history - At the time of the IPO in 2011, Petrolimex has a chartered capital of VND 10,700 billion, equivalent to 1,070,000,000 shares with a 94.99% stake owned by the State. - In early 2016, PLX had paid the 2015 dividend as stocks at the rate of 15% of face value. By mid- 2016, Petrolimex has increased its chartered capital and reduced its State ownership through the issuance of 103.5 million shares to a strategic investor, namely JX Nippon Oil & Energy Vietnam at VND 39,017 per share, equivalent to 8% of its share capital. Those shares are subject to transferable
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