GROUP 5

Ngô Thị Mỹ Linh – 2192600

Nguyễn Trần Chương – 2182503
Trần Đức Quỳnh Như – 2183709
Man Diệu Phối – 2181218
Trần Liên Hương - 2182969
stock
 We lower our recommendation for Asia Commercial Bank (ACB
Valuation
VN) to HOLD (from a BUY recommendation a year ago), with a
target price of VND25,200 (equivalent to expected return of
6.3%).
 Investment thesis
Solid fundamentals
The bank aims to maintain an average ROE of no
less than 20% over the next 5 years, although shares
continue to be diluted. Property quality is generally
maintained at a good level compared to the general
premises.
 Strong recovery with the economy:
Moreover, in the best scenario, the bank's NIM
is forecasted to be equivalent to 2019 level (at
3.55%); Meanwhile, profit after tax can grow up
to 14.2% (compared to the base scenario, only
5.5%).
Other positive factors supporting stock prices:

1) Signing exclusive bancassurance contracts

2) Selling 51% shares of a subsidiary (ACBS) to a strategic partner
3) Switch to listing on the main stock exchange (HOSE).

—
● Risks to the bank's prospect
1) NIM cannot be improved: ACB's average yield on assets is inherently
high compared to the industry thanks to the strategy of promoting
retail banking
2) The relatively high operating costs make ACB less attractive than
the industry; Meanwhile, ACB cannot lower its operating expense
(CIR) ratio in the next 3 years.
D1=25x10000=2500
r=12%
P1= 33500 đ/cp

ACB: P0=D1+P1/(1+r)^1
P0= 3000+33500/(1+12%)
= 32142.85714 đ/cp
FPT stock
The reasons for choosing FPT to invest Risks when choosing FPT to invest

• FPT is the leading technology and • Many competitors from domestic and
telecommunications brand in Vietnam
international competitors
• Ability to develop new technologies, the
• Stealing ideas and copyrights
ability to reach customers in the Forunes 500

• FPT has an education system that provides

high-quality IT human resources.

• Financial is strong, profitable is growing

• Management board has in-depth knowledge

D1=10%x10000=1000
r=12%
P0= 81700 đ/cp

FPT: P0=D1+P1/(1+r)^1
P0=1000+81700/(1+12%)
=73839 đ/cp
 If P / B is greater than 1, the company is doing well and the income on assets
is high. P / B ratios are only really useful when looking at financial firms, or
companies with relatively large asset values.
Whether the company grows fast or not (if the growth is only 5-7% and the P /
E is still high, the stock price is too high);