Equities | Vietnam | Real Estate Development

Phuoc Hoa Rubber JSC (PHR - HSX)

Company Focus 07 January 2024

Add (unchanged) Positive outlook on IPs; retain Add

Target price: VND57,400 (from VND57,100)
Up/downside: 15.4%
▪ We retain our Add rating but slightly lift our SOTP-based TP by 0.5% to
Share price (VND) (as of 5 Jan 2024) 49,750 VND57,400 (upside: 15.5%) as we roll forward our valuation basis to end-
Bloomberg code PHR VN FY24.
52-week range (VND) 37,329-53,200
Trading value (5D) (VNDmn) 49,663 ▪ We lift our FY24 net profit forecast by 22% but cut by 4% that for FY25 on
Market cap. (VNDbn) 6,741 adjustments to key IP projects and rubber. While our FY25 estimate is
Market cap. (USDmn) 277 below the street, we still see an FY23-25 clean net profit CAGR of 22%.
Shares outstanding (mn) 135
Total FOL share room (mn) 66.4 ▪ PHR is up 19% over the last 2M and is now trading at a 21.4% discount to
Current FOL share room (mn) 18.9 RNAV, slightly wider than its 3Y avg. of 20%. We think that the discount
Foreign ownership limit 49.0% should narrow further on good outlook for industrial parks (IPs).
Foreign owned ratio 14.0%
Free float 20.8%
Major shareholder Vietnam Rubber Grp (66.6%) Event: Reviewing FY24-25 outlook
Source: Company, HSC Research estimates
We revisit our estimates following a comprehensive review of the FY24-25
Share price performance outlook for PHR. Overall, we retain our positive view on the company, mostly
PHR (VND) VN30 Index (rebas ed) re. its IP divisions. Meanwhile, the recovery of rubber prices is expected to
improve profitability.
54,000
52,000
50,000
48,000
46,000
44,000
Impact: Net earnings revisions, but largely on timing
42,000

We lift our FY24 net profit forecast by 22% to VND401bn, on revisions of

40,000
38,000

income (incl. 2nd tranche compensation income of VND77bn) from VSIP III and
36,000

more optimistic assumptions on rubber (including a lift to selling prices of 4%

Volume

Jan-23 Mar-23 May -23 Jul-23 Sep-23 Nov -23 Jan-24 to VND36.5mn/tonne). In FY25, meanwhile, we slightly cut our net profit
Share price (%) -1 mth -3 mth -12 mth forecast by 4% to VND485bn, still suggesting 21% y/y growth, aided by
Ordinary shares 2.79 4.41 24.3 earnings shared from NTC 3, VSIP III (2nd tranche compensation income:
Relative to index (2.59) 1.11 13.7 VND72bn), and first bookings from Tan Lap 1.
Relative to sector - - -
Source: Company, FactSet Excluding actual/forecast 1st tranche compensation income one-offs, our profit
estimates suggest growth of -1%, 24%, and 21% over FY23-25, respectively.
HSC vs. consensus Meanwhile, while our FY25 estimates are now well below the street, we see an
EPS adj. (VND) HSC Cons % diff FY22-25 net profit CAGR clean of 1st tranche compensation income one-offs
2023F 3,498 3,548 (1.4) of 14% (FY23-25: 22%)
2024F 2,899 3,045 (4.8)
2025F 3,500 4,910 (28.7) Valuation and recommendation
Source: Bloomberg, HSC Research estimates
Following a 19% rise over the last 2M, outperforming the VN Index by 6%, PHR
Company description is now trading at a 21.4% discount to RNAV, slightly wider than its 3Y avg. of
PHR, originally a pure rubber company, is 20%; we see the discount narrowing on PHR’s improving prospects. Overall,
transitioning into an industrial park developer. It we lift our TP by 0.5% to VND57,400 (upside: 15%) as we roll forward our
holds a land bank totaling 10,340 ha land in Binh
Duong province, largely used for rubber
valuation basis to end-FY24 (from mid-FY24).
cultivation. PHR’s IP outlook is encouraging. With 1,300 ha of rubber landbank in a
strategic location (Binh Duong) – currently the second most attractive province
for FDI flows in the country – being actively converted into industrial land, and
significant additional land, earnings look poised to grow strongly over the next
5Y. The dividend yield also looks decent for FY23 at 6% while we expect 3-4%
for FY24-25.
Year end: December 12-21A 12-22A 12-23F 12-24F 12-25F
EBITDA adj. (VNDbn) 482 378 302  240  501 
Reported net profit (VNDbn) 478 887 484  401  485
EPS adj. (VND) 3,423 6,425 3,498  2,899  3,500
Analysts DPS (VND) 4,500 2,669 3,000 2,000 1,500 
Pham Ngoc Trung BVPS (VND) 22,057 24,248 24,746 25,645 27,645
Senior Analyst, Real Estate and Infrastr. EV/EBITDA adj. (x) 14.6 18.1 23.7 31.2 15.3
trung.pn@hsc.com.vn P/E adj. (x) 14.5 7.74 14.2 17.2 14.2
+84 28 3823 3299 Ext. 172 Dividend yield (%) 9.05 5.36 6.03 4.02 3.02
Ho Thi Kieu Trang, CFA P/B (x) 2.26 2.05 2.01 1.94 1.80
Director, Head of Real Estate EPS adj. growth (%) (58.0) 87.7 (45.6) (17.1) 20.7
trang.htk@hsc.com.vn Ret. on avg. equity (%) 15.4 28.3 14.6 11.7 13.4
+84 28 3823 3299 Ext. 129 Note: Use of ▲ ▼ indicates that the item has changed by at least 5%.
Source: Bloomberg, HSC Research estimates

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

Value here still, on strong IP base

A rolling forward of our valuation basis to end-FY24 (from mid-FY24) is seeing us
slightly lift our target price for PHR by 0.5% to VND57,400. While we cut by 4% our
FY25F net earnings, we still see earnings outlook for PHR is encouraging over FY24-
25 on its promising IP division and an expected recovery of rubber prices; indeed,
our new FY23-25 forecasts call for a 22% CAGR in clean net profit (excluding
actual/forecast 1st tranche compensation income one-offs). Following recent solid
performance, the stock now trades at a 21.4% discount to RNAV – still wider than its
3-yr average of 20.9%. We retain Add for PHR with 15% upside on our new TP, which
based on an assumed 10% discount to RNAV (unchanged).

IP division to benefit from limited supply in Binh Duong

We remain bullish on the industrial parks sector in Vietnam, with the sector benefiting
from a strong FDI inflows. In 2023, FDI commitments increased strongly by 32.1% y/y
to USD36.6bn while FDI disbursement rose 3.5% y/y to USD23.2bn. We think that
these results are encouraging amidst the global slowdown, which is a drag on
investment, as well as concerns regarding the minimum income tax impacting larger
foreign companies. Strong FDI flows will boost the industrial parks sector in Vietnam.
Figure 1: FDI commitments, selected Vietnam provinces Figure 2: Accum’d FDI commitments, selected Vn provs.
Binh Duong attracted USD1.6bn in FDI commitment in FY23 Binh Duong is ranked the third position in attracting FDI

HCMC Hai Phong Bac Giang Hanoi

HCMC
Bac Ninh Binh Duong Dong Nai Other
Hanoi
40,000
Binh Duong
35,000
Dong Nai
30,000
BT-VT
25,000 Hai Phong
USD mn

20,000 Bac Ninh

15,000 Thanh Hoa

10,000 Long An
Quang Ninh
5,000
Other
0
2018 2019 2020 2021 2022 2023 0 50 100 150 200
USC mn
Source: FIA, HSC Research Source: FIA, HSC Research

Figure 3: IP supply and performance by Southern provinces in 1H23

Occupancy rate was 92% and the avg. price was USD174 psm

Occupied Vacant Avg rent

8,000 400
7,000 350
6,000 300
5,000 250
ha

4,000 200
3,000 150
2,000 100
1,000 50
0 0
Binh Duong Dong Nai Ba Ria-Vung Long An HCMC
Tau
Source: Savills, HSC Research

Binh Duong attracted USD1.6bn in FY23, down by 50% y/y. We think that one of the
reasons for the decline was a limited supply of industrial land in Binh Duong (Figure

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

3). Currently, Binh Duong has 29 industrial parks with a total site area of 12,662 ha.
Notably, the occupancy rate of Industrial parks here is very high at 93% and hence
investors have few choices to locate their factories. Binh Duong initially plans to add
18 new industrial parks with total sites of 6,573 by 2030. However, the official numbers
will be identified in the official masterplan for the whole province, which is expected to
be approved by the Prime Minister in the future (the timings are uncertain).
We note that Binh Duong is a one of top economic and manufacturing provinces in
Vietnam with population of 2.5mn people at the present, adjacent to HCMC, the
biggest economic center and consumer market, well-established industrial hubs over
many years of development. Total accumulated FDI commitment reached
USD40.4bn, ranked at the third position in Vietnam. As such, we think that demand
for industrial parks in Binh Duong is still strong. In the next few years, VSIP III (1,000
ha, PHR holds 36% economic interest including 2nd tranche compensation and 20%
stake) and NTC III (346 ha, 33% owned by PHR) will be the main industrial land supply
sources in Binh Duong. As such, PHR will benefit significantly from this.
We show our updated IP project pipeline in Figure 4 below:
• Nam Tan Uyen JSC (NTC; Not Rated), 33% owned by PHR, obtained land lease
decision on 24 May 2023, for the Nam Tan Uyen III IP project (344 ha, Binh Duong).
The project is waiting for the land using fees numbers (LUR) from Binh Duong
province. After finishing LUR payment, NTC can start constructing infrastructure
and delivering land to tenants. We are forecasting the project to start delivering 50-
60 ha industrial land at this project in FY24.
• VSIP III: This project includes three phases with the 1st phase of 200 ha under
operation. VSIP has delivered 44 ha to LEGO, the Danish plastic construction toys
produces in FY23, and expected to deliver 20 ha to Pandora, a Danish jewelry
manufacturer and retailer in FY24. Currently, PHR is working with its partners (VSIP
Group) to identify total adjusted investment capital before contributing 20% capital
to this project – expected to be completed in FY24. We expect that compensation
income (2nd tranche, totaling VND77bn) from handover land to tenants (Lego and
Pandora) and profit shared from this project (for 20% stake, totaling VND76bn) will
be booked in FY24.
The 2nd phase: VSIP III has just received a decision from Binh Duong province
identifying the land using fees amounts for the site are of 478 ha in Dec-23. We
expect this phase to be developed in the near future.
Overall, we expect this project can contribute earnings to PHR from FY24-25,
VND100bn-150bn each year including the 2nd tranche compensation income and
20% profit sharing.
• For the Tan Lap I IP project, the company is waiting for the investment license.
Management share that working process with authorities is speeding up and can
get investment license by the end of this year, start developing in FY24 and put it
into operation from FY25. We think that it is sensible and achievable.
Figure 4: Industrial park project pipeline, PHR
PHR’s Total site Total leasable Expected
Industrial park Project status
ownership area (ha) area (ha) launch year
Subsidiaries 1,608 1,124
Tan Binh 1 80% 352 244 Fully occupied
Expects to get investment license in late
Tan Lap 1 51% 200 140 2025-2026
FY23 /early FY24
Tan Binh 2 80% 1,056 739 2026-2027 Under paperwork
Associates 1,346 905
Granted land lease decision in 2Q23, expects
Nam Tan Uyen 3 (NTC 3) 33% 346 255 2023
to deliver land in FY24
VSIP 3 (*) 20% 1,000 650 2023 Identifying total adjusted investment capital
Notes: PHR handed over 691 ha of rubber land to VSIP 3 in return for two tranches of compensation income, including VND898bn in a 1st tranche (equivalent to
VND1.3bn/ha, booked all in FY22-23) and 16% of annual profit after tax when VSIP 3 commence (the 2nd tranche, equivalent to VND1.2bn/ha). Also, PHR will contribute
capital to own 20% stake in this project. Overall, PHR receives VND893bn compensation income and 36% profit sharing from VSIP 3.
Source: Company data, HSC Research

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

New earnings estimates

For FY24, we revised up our FY24 net profit forecast by 22.2% to VND401bn, mainly
on our new higher assumed rubber selling prices (revised up 4% to
VND36.5mn/tonne) and tweaks on earnings shared from the VSIP III IP project,
including 2nd compensation income of VND77bn vs. VND36bn in our old forecast and
profit sharing from this project of VND76bn vs. VND46bn in our old forecast. This is
related to the 20% stake which PHR is working with VSIP to finalize total adjusted
investment capital – expected to be completed in FY24.
Our new FY24 net profit suggests a decline of 17.2% y/y vs. FY23F (which is aided by
VND200bn in 1st tranche compensation income from VSIP III). Excluding the effects
on 1st tranche of compensation income which is one-time booking, FY24 earnings are
expected to grow by 23.7% y/y.
We mostly keep our FY24 revenue unchanged at VND1.4tbn, up 5.1% y/y. We
forecast revenue from rubber division to increase by 24% y/y to VND1.2tn, accounting
for 86% of PHR’s consolidated revenue while revenue from industrial parks is
expected to drop by 79% y/y to VND48bn as PHR has completed leased out the Tan
Binh 1 IP project. In FY24, VSIP III (PHR holds 36% economic interest in total) and
NTU III (again, PHR holds 33% economic interest) are expected to contribute earnings
to PHR, reflected in financial income, income from affiliates, other income.
On mixed effect of revisions of earnings from IP projects and the rubber division, we
slightly cut our FY25 net profit by 4.0% to VND485bn, still up 21.0% y/y (clean of 1st
tranche compensation income one-offs), on revenue of VND2.0tn, up 48.1% y/y. FY25
growth drivers are expected to be recovery of the rubber division and the booking from
the early first phase of the Tan Lap 1 IP project which will be consolidated in PHR’s
financial reporting.
Figure 5: FY23F-FY25F earnings forecasts, PHR
‘Clean’ profit is forecast to grow at a CAGR of 14% over FY22A-25F (FY23F-25F: 22%)
New Growth New Growth Growth
VNDbn FY22 Revision FY25F Revision
FY23F y/y FY24F y/y y/y
Total revenue 1,709 1,295 -24.2% 1,360 -0.6% 5.1% 2,015 -10.6% 48.1%
Rubber & Woods 1,457 1,056 -27.5% 1,301 -0.5% 23.2% 1,382 -3.2% 6.2%
IP leases 253 228 -9.9% 48 -18.5% -78.9% 620 -24.8% 1190%
Gross profit 390 277 -28.9% 204 3.3% -26.3% 500 -17.4% 144.8%
SG&A expenses (146) (131) -10.4% (133) -5.7% 1.6% (176) 4.8% 32.4%
Net financial income 159 144 -9.2% 166 -16.8% 15.4% 125 22.2% -25.1%
Income from JV/associates 30 65 120.0% 129 95.4% 98.5% 119 18.3% -7.4%
Other income 696 278 -60.0% 135 51.5% -51.6% 132 7.1% -2.3%
PBT 1,129 634 -43.8% 502 22.0% -20.9% 700 -8.5% 39.6%
Net profit 887 484 -45.4% 401 22.2% -17.2% 485 -4.1% 21.1%
Net 1st tranche comp. income one-off 559 160 -71.4% - - - - -
‘Clean’ net profit 328 324 -1.2% 401 22.2% 23.7% 485 -4.1% 21.1%
Source: HSC Research

We stress again that we aren’t forecasting any unusual items over the FY24-25 period.
Overall, our forecasts call for a net profit CAGR of (18%) over FY22A-25F; excluding
1st tranche of compensation income in all periods, the profit CAGR over the same
period goes to 14%.

Valuation: Slightly revised up TP; retain Add rating

Conclusions and methodology
We value PHR on a sum of the parts basis (Figure 6). We slightly revise up our
RNAV/share by 0.5% (to VND63,800) as we roll forward our valuation basis to end-
FY24 (from mid-FY24). To derive our target price at VND57,400 (upside: 15%), we
apply an assumed discount to RNAV of 10% (unchanged), lower than its historical
average discount of 20% reflecting what we see as a better industry outlook for
industrial parks. We retain our Add rating.

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

Details of our valuation:

• We roll forward our PHR’s estimated RNAV into end-FY24 from mid-FY24.
• We use a WACC of 15.2% (unchanged).
• We value all industrial parks using DCF. We include Tan Binh 1, Tan Binh 2, Tan
Lap 1, VSIP3, NTC 3 industrial parks (NTC 3 is under Nam Tan Uyen JSC (NTC,
Not rated). PHR owns 33% of NTC which we value based on RNAV.
• Collectively, the gross operating asset value of the industrial park division (including
the value of industrial parks, the investment in NTC, and land transfer income)
accounts for 75%, on average, of PHR’s total gross asset value.
• We use DCF to value the rubber business including production and sales of rubber
and wood. This division accounted for 25%, on average, of PHR’s gross operating
asset value.
We also conduct a sensitivity analysis of our target price against changes in the risk-
free rate assumption in Figure 7.
Figure 6: RNAV calculation, PHR
PHR's
VNDbn Methodology End-FY24
interest
Industrial parks DCF 20-100% 3,589
Rubber and woods DCF 100% 1,374
Other assets BV 100% 384
Investment in NTC RNAV 33% 1,642
Total revaluation value 6,989
(+) Net (debt)/cash 1,664
Equity value 8,653
Total outstanding shares (mn) 135.5
Value per share (VND) 63,800
Discount 10%
Target price (VND) 57,400
Source: HSC Research

Figure 7: Target price sensitivity to risk-free rate assumption, PHR

Our base uses a 4% risk-free rate
Risk-free rate Target price
3.0% 60,300
3.5% 58,900
4.0% 57,400
4.5% 56,200
5.0% 54,900
Source: HSC Research

Figure 8: Historical discount to RNAV, PHR

PHR is trading at 21.4% discount to RNAV, vs. historical average discount of 20.0%

Discount to RNAV Average

40%
30%
20%
10%
0%
-10%
-20%
-30%
-40%
-50%
-60%
-70%
Jan-21 Jul-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23

Source: Bloomberg, HSC Research

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

Valuation context
PHR’s share price is up 19% in the past 2M – (and outperformed the VN Index by 6%).
PHR is trading at a 21.4% discount to RNAV, slightly wider than its historical average
discount of 20% seen over the last three years (Figure 8). As we expect landbank will
be unlocked in the mid-term, we believe the discount will narrow further. Upside to our
RNAV retains as more from the rubber land (1,900 ha) could be converted into
industrial park land either via transferred to other developers and retain minorities
interest or self-developed.
Risks
Legal risks: The approval time for Tan Binh 2, and Tan Lap 1 parks may be longer
than we expect and thus represents downside risks to our forecasts and valuation. On
the other hand, if ‘Decree 35’ has a more profound impact on the approval time, more
of PHR’s landbank may be unlocked, such as Hoi Nghia and Binh My, which is an
upside risk to our valuation.

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

Financial statements and key data

Income statements (VNDbn) 12-21A 12-22A 12-23F 12-24F 12-25F Cash flow statements (VNDbn) 12-21A 12-22A 12-23F 12-24F 12-25F
Sales 1,945 1,709 1,295 1,360 2,015 EBIT 370 244 147 71.5 324
Gross profit 517 390 277 204 500 Depreciation & amortisation (113) (134) (156) (169) (177)
SG&A (147) (146) (131) (133) (176) Net interest 96.4 100 121 81.1 41.8
Other income 0 0 0 0 0 Tax paid (84.1) (201) (127) (100) (140)
Other expenses 0 0 0 0 0 Changes in working capital (36.1) (113) 124 (190) 133
EBIT 370 244 147 71.5 324 Others (204) 626 39.9 (40.0) (38.9)
Net interest 96.4 100 121 81.1 41.8 Cash flow from operations 255 790 461 (8.81) 497
Associates/affiliates (13.5) 29.5 65.0 129 119 Capex (115) (137) (65.6) (503) (736)
Other non-operational - - - - - Acquisitions & investments (1,759) (2,035) (559) 0 0
Exceptional items 145 755 301 220 215 Disposals 1,984 1,749 74.7 252 54.0
Pre-tax profit 597 1,129 634 502 700 Others 204 182 167 212 203
Taxation (84.1) (201) (127) (100) (140) Cash flow from investing 315 (241) (383) (39.2) (479)
Minority interests (35.9) (40.3) (23.1) (0.46) (74.7) Dividends (636) (362) (406) (271) (203)
Exceptional items after tax - - - - - Issue of shares 0 0 0 0 0
Net profit 478 887 484 401 485 Change in debt (222) (161) 321 312 672
Other financing cash flow 0 0 0 0 0
Net profit adj'd 464 871 474 393 474 Cash flow from financing (858) (523) (85.1) 40.9 468
EBITDA adj. 482 378 302 240 501
Cash, beginning of period 428 139 166 158 151
EPS (VND) 3,524 6,546 3,573 2,958 3,583 Change in cash (289) 26.6 (7.39) (7.08) 486
EPS adj. (VND) 3,423 6,425 3,498 2,899 3,500 Exchange rate effects (0.20) (0.00) 0 0 0
DPS (VND) 4,500 2,669 3,000 2,000 1,500 Cash, end of period 139 166 158 151 638
Basic shares, average (mn) 135 135 135 135 135
Basic shares, period end (mn) 135 135 135 135 135 Free cash flow 140 653 395 (512) (240)
Fully diluted shares, period end (mn) 135 135 135 135 135

Balance sheets (VNDbn) 12-21A 12-22A 12-23F 12-24F 12-25F Financial ratios and other 12-21A 12-22A 12-23F 12-24F 12-25F
Cash 139 166 158 151 638 Operating ratios
Short-term investments 1,898 2,234 2,234 2,034 2,034 Gross margin (%) 26.6 22.8 21.4 15.0 24.8
Accounts receivable 273 239 211 228 251 EBITDA adj. margin (%) 24.8 22.1 23.4 17.7 24.9
Inventory 336 322 190 373 231 Net profit margin (%) 24.5 51.9 37.4 29.5 24.1
Other current assets 91.8 75.4 75.4 75.4 75.4 Effective tax rate (%) 14.1 17.8 20.0 20.0 20.0
Total current assets 2,738 3,035 2,869 2,861 3,229 Sales growth (%) 19.2 (12.2) (24.2) 5.06 48.1
EBITDA adj. growth (%) 27.5 (21.6) (20.0) (20.6) 109
PP&E 1,743 1,767 1,685 1,590 1,479 Net profit adj. growth (%) (58.0) 87.7 (45.6) (17.1) 20.7
Intangible assets 0.81 0.70 0.57 0.44 0.30 EPS growth (%) (55.9) 85.7 (45.4) (17.2) 21.1
Investment properties 202 199 222 244 266 EPS adj. growth (%) (58.0) 87.7 (45.6) (17.1) 20.7
Long-term investments 161 139 139 139 139 DPS growth (%) 80.0 (40.7) 12.4 (33.3) (25.0)
Associates/JVs 215 242 867 996 1,115 Dividend payout ratio (%) 128 40.8 84.0 67.6 41.9
Other long-term assets 967 935 874 1,230 1,827
Total long-term assets 3,289 3,283 3,788 4,199 4,826 Efficiency ratios
Return on avg. equity (%) 15.4 28.3 14.6 11.7 13.4
Total assets 6,027 6,318 6,657 7,060 8,055 Return on avg. CE (%) 7.22 4.95 2.82 1.29 5.28
Asset turnover (x) 0.31 0.28 0.20 0.20 0.27
Short-term debt 176 119 151 196 299 Operating cash/EBIT (x) 0.69 3.23 3.14 (0.12) 1.53
Accounts payable 50.0 77.0 48.5 56.7 60.8 Inventory days 85.9 89.1 68.1 118 55.6
Other current liabilities 903 946 956 964 976 Accounts receivable days 69.8 66.0 75.9 71.9 60.5
Total current liabilities 1,192 1,282 1,290 1,352 1,480 Accounts payable days 12.8 21.3 17.4 17.9 14.7

Long-term debt 242 146 435 701 1,270 Leverage ratios

Deferred tax 1.65 1.49 1.49 1.49 1.49 Net debt*/equity (%) 10.8 3.81 13.3 22.1 25.7
Other long-term liabilities 1,483 1,452 1,404 1,356 1,308 Debt/capital (%) 7.67 4.61 9.10 13.0 19.9
Long-term liabilities 1,726 1,599 1,840 2,059 2,580 Interest coverage (x) N/a N/a N/a N/a N/a
Debt/EBITDA (x) 0.96 0.77 2.00 3.83 3.19
Total liabilities 2,918 2,882 3,130 3,411 4,060 Current ratio (x) 2.30 2.37 2.22 2.12 2.18

Shareholders' funds 2,989 3,286 3,353 3,475 3,746 Valuation

Minority interests 120 151 174 174 249 EV/sales (x) 3.61 4.00 5.54 5.50 3.81
Total equity 3,109 3,436 3,527 3,649 3,995 EV/EBITDA adj. (x) 14.6 18.1 23.7 31.2 15.3
P/E (x) 14.1 7.60 13.9 16.8 13.9
Total liabilities and equity 6,027 6,318 6,657 7,060 8,055 P/E adj. (x) 14.5 7.74 14.2 17.2 14.2
P/B (x) 2.26 2.05 2.01 1.94 1.80
BVPS (VND) 22,057 24,248 24,746 25,645 27,645 Dividend yield (%) 9.05 5.36 6.03 4.02 3.02
Net debt/(cash)* 279 98.3 427 746 931
Note: *Excluding short-term investments.
Source: Company, HSC Research estimates

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 Company Focus - Phuoc Hoa Rubber JSC (PHR) 07 January 2024

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Explanation of Institutional Equity Research Ratings

Buy: Expected to rise by more than 20% on an absolute basis in the next 12 months
Add: Expected to rise by between 5% and 20% on an absolute basis in the next 12 months
Hold: Expected to rise or decline by less than 5% on an absolute basis in the next 12 months
Reduce: Expected to decline by between 5% and 20% on an absolute basis in the next 12 months
Sell: Expected to decline by more than 20% on an absolute basis in the next 12 months

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