Ngày đăng: 30/07/2019
Flat earnings for FY19 and FY20
- We revise down our 12-month target price by 9% to VND 102,600 (-4% upside) and maintain our HOLD recommendation for GAS. Any upside potential of our target price will come from new pricing mechanism for take-or-pay volume, translating to a 14% increase to our FY19 net profit forecast. On the other hand, territorial disputes in the South China Sea imply a downside risk.
- Long-term provisions for pipeline decommissioning and abandonment plans lower earnings forecast in FY19 and FY20 by 6% and 7% respectively. We anticipate annual provision of VND 560bn on average in the period of 2020-2022.
