PPC [BUY +22.7%] - Removal of upgrade projects is net positive - Update
  • 2019-05-20T19:13:47
  • Company Research
We maintain a BUY rating and raise our target price by 12.7% to VND31,000/share, mainly due to the cancellation of machinery and environment upgrade projects (capex of VND4.7tn/USD204mn) and higher terminal growth rate due to the expected Pha Lai 3 plant. We raise our cash dividend assumption for 2019-2023 from VND2,500/share (9.0% yield) to VND3,000/share (10.8% yield) given a higher available cash after removing the above projects.