The increase of more than 30% of HTN went against the general market movement last week when the VN-Index decreased by 16.1 points and decreased by 1.76% within week.
On November 12th, 2018, Hung Thinh Incons Joint Stock Company listed 25 million shares on Ho Chi Minh City Stock Exchange (HOSE: HTN). HTN stocks had an active trading week and closed at the end of the week at 30,400 VND / share, up 30.47% compared to the offering price. This was also one of the stocks with the highest increase on Ho Chi Minh Stock Exchange in the past trading week.
The liquidity of HTN stocks averages about 245,000 stocks per session, it is high compared to other stocks in the same sector.
By Cafef.vn
The growth of the price of HTN stocks went against the general market movement last week when the VN-Index decreased by 16.1 points and decreased by 1.76% within week. So what factors did help HTN stocks create attraction to investors in the first trading week?
Strong inherent potential
In the most recent 5-year period, from 2013 to 2017, the average growth rate of net revenue of Hung Thinh Incons reached over 215% and the average growth rate of profit was up to 190%.
In 2018, the company set a revenue target of VND 4,054 billion and profit after tax of VND 180 billion, an increase of 50% and 64% respectively compared to the previous year. In the first 9 months of the year, Hung Thinh Incons earned over VND 2,590 billion in revenue and profit after tax recorded VND 114.5 billion. With the items under construction and unaccepted as of September 30th, 2018, it reached VND 1,260 billion (accounting for 98% of the proportion of inventories), according to the company’s leadership, the fourth quarter profit reached VND 66 billion and the profit plan for 2018 was ensured to complete.
9-month basic EPS reached 4,580 VND / share, quite high compared to many enterprises in construction and real estate sector.
Hung Thinh Incons is also the main general constructor of Hung Thinh Corp - the leading real estate investor and developer in the South today. The land fund of this Corporation is currently about 3,000ha in many provinces and cities nationwide such as:,... This is a great advantage for HTN.
With a dividend payment rate of 30%, of which 15% in cash and 15% by stock, Hung Thinh Incons will implement profit distribution in 2017 right after listing. By the end of the third quarter of 2018, Hung Thinh Incons has had nearly VND 269 billion retained profits. This was a great source of capital to ensure the company’s ability to pay dividends.
With equity of VND 479 billion in 2017, HTN has medium size compared to other companies in the same sector. However, the business performance of the enterprise was superior in 2017 with the profit after-tax / Return on Average Equity (ROEA) index reaching 28.64%, higher than the “elder” in the sector, Coteccons (24.40%).
With a high growth rate and the construction of a series of large projects, Hung Thinh Incons is affirming the strong development in the construction sector.
Attractive appraisal
According to calculations by SAIGON SECURITIES CORPORATION (SSI), listing companies in the same construction sector with HTN are Hoa Binh (HoSE: HBC), Coteccons (HoSE: CTD), Phuc Hung Holdings (HoSE: PHC) and Tan Ky Construction Real Estate Trading Corporation (TKC - HNX) have an average market price index on EPS (P/E) at density of 8.25.
In 2017, company's EPS reached a high rate of 4,407 VND / share. If temporarily calculated based on the average P / E ratio by the above density (the density of HBC and CTD is low because of large difference in capital size), the fair value of HTN stocks by P/E valuation method is 36,363 VND / share, 56% higher than the listing price.
It is attractive not only in term of P/E valuation, the valuation method based on book value P/B also gives positive results. Book value of Hung Thinh Incons in 2017 recorded 19,144 VND / share. Compared to other companies in the same sector, HTN is only ranked behind CTD (92,128 VND / share) but it is ranked above many “big man” in construction sector including HBC, PHC and TKC.
Thus, with strong inherent potential and attractive valuation, good price range and liquidity in the first trading week of HTN are positive signs showing stable growth prospects of HTN stocks.
Theo ndh.vn
