GTJASVN_DPR Equity Report_AM update Q4 2021

Investment thesis

• Large landbank, which is going to be converted to industrial land development.
• Stable rubber business, which enjoy benefit from higher selling price and high demand of export.
• 2000 ha estate handover for next 10 years, approximately 200 ha per year, will bring stable cash flow about 200 bil VND/year.
• Bac Dong Phu and Nam Dong Phu industrial park were already approved to be developed in master planning. We expect these projects will start in 2022 and bring cashflow in 2023.

Risk

• The legal process may prolong than expected.
• Industrial Park in Binh Phuoc is not attractive as in Binh Duong;
• Slow infrastructure disbursement by the government, which restrict investment in industrial park in Binh Phuoc.

Recommendation: 

We value 3 separated cashflow streams from estate handover, rubber business and industrial park, then we estimate DPR stock at 73,500 VND/share. We recommend Neutral for DPR stock.