Business Outlook

Revenue from the M.E.P segment and telecommunications services is secured by work volume from major shareholders, Becamex and VNPT. In the M.E.P segment, revenue is expected to remain stable, driven by Becamex’s industrial park expansion and a high absorption rate (90%). Meanwhile, the telecommunications segment’s growth outlook is supported by the anticipated digital infrastructure expansion and VNPT’s leading position in network infrastructure and prepaid television services in Vietnam. The Data Center segment is projected to grow at a promising rate of 10% per year. The company possesses high-quality assets, carries no debt, and holds substantial cash deposits, generating stable interest income. On the other hand, despite the ongoing digital infrastructure development trend, TTN has yet to demonstrate a strong commitment to expanding its service capacity. The company’s growth potential could accelerate significantly if it adopts a more aggressive investment strategy in trend-driven solutions such as data centers and digital infrastructure solutions. TTN maintains a stable cash dividend payout of 700-1,200 VND per share per year.

Based on our valuation of TTN at 21,168 VND per share and the closing price of 22,000 VND per share on February 16, 2025, we recommend a “HOLD” rating for TTN.

Investment Risks The information technology sector has experienced a strong rally in 2024, with an average gain of 77%. TTN’s stock has tripled in value, indicating a high risk of correction within this sector.