INVESTMENT THESIS

The telecommunications infrastructure construction & operation segment benefits from the Vietnam telecommunications infrastructure development plan. With the 5G infrastructure development roadmap, Viettel Group aims to own 30,000-50,000 5G BTS stations nationwide by 2030, showing a large amount of work and growth prospects for CTR in the next 5-10 years.

TowerCo business outlook. With the number of BTSs constantly increasing, CTR currently owns the largest number of BTS stations among the Towercos operating in Vietnam. However, the company’s tenancy rate is still very low compared to domestic and international businesses in the same industry (about 1.4-1.5). CTR’s Towerco profit margin and sales will increase sharply if the business can raise the tenancy ratio to be on par with other Towercos.

Prospects in providing integrated solutions along with green society trends and smart city development.

RECOMMENDATION

We believe that CTR’s business model is very potential in the long term. With the target price of 144,800VND/share, equivalent to 4.9% lower than the closing price on June 14, we recommend “HOLD” for CTR stock.