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Price target BID of 86,500 VND ($USD 3.78) per share

Friday - 22/06/2018 02:24
BID - Bank for Investment and Development of Vietnam (BIDV) has been operating in the finance and banking sector. At present, the transaction price on the stock exchange at the end of 06/21/2018 at the price of VND 26,800 / share is not reflecting its full value. of BIDV Bank. We expect BIDV to stand at VND 86,500 per share, equivalent to a increase of nearly 220% from the current price.
 
bid revenue profit capital cophieuviet com 2018
bid revenue profit capital 2018
S & P rated long-term issuers for BIDV at B +; short-term publisher rating B; stable prospects.

According to S & P, BIDV's rating reflects the profitability and quality of assets compared to local banks, leading in the system of joint stock commercial banks in terms of total assets, the second largest in terms of Debt, capital mobilization from customers and distribution network - Bank accounts for about 13% of credit market share and 12% market share of deposits.

S & P also noted BIDV's progress in retail banking development, and assessed that BIDV's shift to focus on retail credit will help diversify its lending portfolio and improve its profit. In addition, S & P assesses the ability of the Bank to receive government support due to its importance in the system.
 
BIDV's liquidity is supported by stable deposits and the ability to access government funds as well as funds to support development projects from international organizations.

The "stable" outlook reflects S & P's forecast that BIDV will continue to maintain its profitability, improve asset quality, and handle bad debt and outstanding debt in the next 12-18 months.

BIDV plans to achieve pre-tax profit of VND9,300 billion in 2018, up 7.3% over 2017; At the same time, we focus on raising charter capital from issuance of shares to foreign investors. In addition, BIDV plans to pay dividends in 2017 at a rate of 7% in cash.

According to the document, in 2017, BIDV has completed the targets of business plan in 2017 by the General Meeting of Shareholders. Specifically, total assets reached VND1,202,284 billion, up 19.5% compared to 2016, maintaining its position as the leading bank of the commercial banking system.

Capital mobilization increased by 19.7%, of which mobilizing capital from organizations, residents (banks alone) increased by 17.4%; Outstanding credit and investment increased by 21.4%, of which outstanding loans increased 17%; Bank's bad debt was 1.44%; profit before tax reached VND8,665 billion.

Regarding the increase of charter capital, last year, the ESOP component and share issuance from the remaining profit has not been approved by the competent authority; Private placement of shares to investors, issuance to strategic investors are submitted to state management agencies for consideration and approval according to regulations. The convertible bond issue was of interest to BIDV but was only favorable when BIDV selected strategic shareholders.

In 2018, BIDV set the credit growth target up to 17% and within the limits allocated by the SBV; Capital mobilization increased 17%; NPL ratio is below 2%.

Notably, BIDV plans to achieve pre-tax profit of VND9,300 billion in 2018, up 7.3% from 2017.

In addition, the bank plans to pay dividends in 2017 at a rate of 7% in cash

BIDV's Board of Directors said that in 2018, the bank will focus on raising charter capital from issuing shares to foreign investors (including strategic investors and financial investors) and implement measures other capital increase.

Together with that, BIDV will implement the BIDV structural plan in association with NPLs up to 2020, focusing on improving asset quality and controlling credit quality through measures to recover overdue debts. , VAMC selling debt, controlling credit limits for high-risk industries; credit restructuring in the right direction.

BIDV said that the bank will focus on increasing and strengthening the quality of customer base, especially the segment of retail customers and SMEs; Gradually focus on the large group of high risk customers. At the same time, boosting non-credit revenues, especially focusing on net fee income to improve net income structure.

Like many commercial banks, BIDV also prioritizes the development of its digital banking strategy on all aspects of its business operations, product processes and distribution channels.

Based on BID's prospects for the period from 2018 to 2027, we calculate the discounted cash flow of the current business at a discount rate of 10% per annum, PLX is about 86,500 VND (3,78 usd) per share.
bid intrinsic value cophieuviet com 2018
bid intrinsic value

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