{"id":9641,"date":"2021-08-05T08:39:04","date_gmt":"2021-08-05T01:39:04","guid":{"rendered":"https:\/\/gtjai.com.vn\/?post_type=research&p=9641"},"modified":"2021-10-14T08:40:07","modified_gmt":"2021-10-14T01:40:07","slug":"ctg-equity-report_buy-upside-16-1_fruitful-result-in-medium-long-term-2","status":"publish","type":"research","link":"https:\/\/gtjai.com.vn\/en\/research\/ctg-equity-report_buy-upside-16-1_fruitful-result-in-medium-long-term-2\/","title":{"rendered":"CTG Equity Report_Buy Upside 16.1_Fruitful result in medium long term"},"content":{"rendered":"

INVESTMENT THESIS<\/strong><\/span><\/p>\n

Business result 1H2021: CTG recorded credit growth of 6%ytd. Customer deposit growth is also at a good level compared to the whole industry, +5%ytd. In the first 6 months of the year, the bank’s TOI reached VND 27,000 billion, + 30.7% yoy. Meanwhile, operating expenses rose more slowly at +16.7%yoy, causing CIR ratio to fall from 31.9% to 28.5%. The bank’s 6-month accumulated pre-tax profit reached VND 10,850 billion (ranked 3rd in the industry), up 45.4%yoy.<\/span><\/p>\n

The post-restructuring phase of CTG will explode thanks to retail activity, through which we expect new SME and individual disbursement to lead the bank’s credit growth to 9.65% in 2021. NII improved thanks to more advantaged cost of funds; service income increased by 50%yoy and the improved CIR rate will help PBT grow by 31.74% yoy, reaching VND 22,507 billion in 2021. In addition, the resonated advantage from capital increase creates a strong capital buffer for the bank to grow strongly in the medium and long term.<\/span><\/p>\n

RISKS<\/strong><\/span><\/p>\n

In the short term, the bank’s profits are affected by the epidemic. Supporting packages and new bad debts leading to increased provision expenses, will lower the bank\u2019s profit.<\/span><\/p>\n

RECOMMENDATION<\/strong><\/span><\/p>\n

CTG shares have had a sharp increase of more than 100% in the past 1 year. Currently, the P\/B of the bank is relatively high compared to the peers, which are banks with the same size of equity and outstanding loan in Pacific- Asia countries. Despite this, CTG’s P\/B is currently 1.74, lower than the P\/B of the SOBs group and the industry-leading private commercial group such as TCB, MBB. Therefore, resonating with positive business prospects, we recommend “BUY<\/strong>” CTG shares with a target price of\u00a039,200VND\/share<\/strong>, equivalent to upside 16.1%.<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"template":"","cate_research":[80],"specialized":[],"class_list":["post-9641","research","type-research","status-publish","hentry","cate_research-bao-cao-doanh-nghiep-en"],"yoast_head":"CTG Equity Report_Buy Upside 16.1_Fruitful result in medium long term - GTJA<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/gtjai.com.vn\/en\/research\/ctg-equity-report_buy-upside-16-1_fruitful-result-in-medium-long-term-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CTG Equity Report_Buy Upside 16.1_Fruitful result in medium long term - GTJA\" \/>\n<meta property=\"og:description\" content=\"INVESTMENT THESIS Business result 1H2021: CTG recorded credit growth of 6%ytd. 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Customer deposit growth is also at a good level compared to the whole industry, +5%ytd. In the first 6 months of the year, the bank’s TOI reached VND 27,000 billion, + 30.7% yoy. 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