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Price target ACB of VND 79,000 (USD 3.44) per share

Monday - 25/06/2018 21:58
ACB - Asia Commercial Joint Stock Bank has been operating in the finance and banking sector. At present, the transaction price on the stock exchange at the end of 06/25/2018 at the price of VND 39,300 / share is not reflecting its full value of ACB Bank. We expect ACB to stand at VND 79,000 (USD 3.44) per share, equivalent to a increase of nearly 100% from the current price.
ACB Intrinsic Value 2018
ACB Intrinsic Value 2018
In 2018, the bank targets total asset growth of 18%; customer deposits increased by 18%, credit increased by 15%, according to the limit set by SBV. NPL ratio is below 2%. Profit before tax of the group reached about VND5,699 billion, 2.14 times higher than that achieved in 2017 (VND2,656 billion).
 
acb revenue profit capital equity liabilities 2018 cophieuviet com
Revenue/profit/Capital Growth of ACB


In order to achieve this target, ACB will continue to promote retail credit growth according to the set target. At the same time, the bank will also focus on handling and recovering bad debts.

Regarding the distribution of profit in 2017, the Board of Directors will submit to the shareholders a share dividend plan of 15%. Accordingly, the dividend payout in 2017 is approximately VND 1,626 billion, derived from un-distributed profit after tax. Dividends will be paid this year.

Along with paying dividends by shares, the chartered capital of ACB will increase by VND1,627 billion to VND12,885 billion.

Meanwhile, with a profit target of VND5,699 billion this year, the bank also aims to pay a dividend of 30% in 2018 and continue to pay dividends of VND3,740 billion in shares.

Reduce bad debt burden

According to the bank leader, one of the concerns of ACB for many years is that the burden of bad debt affects the total profit. But now, the bank handles "smooth, neat" and one year earlier than expected.

By the end of 2017, ACB's bad debt ratio is only 0.7% while the capital adequacy ratio (CAR) is 11.49%. The bank has bought over VND1,500 billion in VAMC bonds. This year, the bank aims to control bad debt ratio below 2%.

"This year, we do not have to set aside provisions for outstanding loans, even to record extraordinary profit from reimbursement, with the ability to handle bad debt thoroughly, ACB has been lifted by Moody. From B1 to B1, this is the basis for the bank to make a remarkable profit compared to previous years, "said by General Director Do Minh Toan.

In 2017, ACB is in the high growth group. In the first three months of this year, banking profit was VND1,491 billion, up 151% y / y. "The figure of VND5,700 billion is based on this basis," ACB said.

This year, ACB also set a credit growth target of 15% for state-owned banks. Mobilization of deposits from customers, total assets increased by 18%. Consolidated profit before tax increased 2.2 times compared to 2017.

Human factor advantage

According to the General Director of ACB, in order to achieve all business ambitions, in the past many years, the bank actively invested in people; From changing policies to attracting and retaining talents to training to improve the capacity of 10,000 existing staff.

"We expect 2018 to be the time when ACB is picking fruit for the seeds of talent that the bank has cultivated for years." ACB's 10,000 staff will be the key drivers for all of the goals. which we set out, "the CEO said.

Technology Heads

According to the plan, this year, ACB continues to push up its retail strategy as it focuses on credit growth of individual customers, small and medium enterprises in parallel with the development of digital banking.

Bank leaders said that preferential loans for individual customers and enterprises with appropriate interest rates and many accompanying preferential policies were introduced. In addition to expanding the network will help the bank to reach faster and closer to customers.

In 2017 ACB had outstanding personal loans of 111.135 trillion dong, up 29% and outstanding loans of 87.379 trillion dong, up 13.5%.

In addition, the bank invests more in financial technology, providing services tailored to the needs of clients in their work and life, in order to increase the competitive edge between banks and fintech firms. Other technology companies ...

"ACB will not limit itself to traditional products, services and services that will expand, increase interactivity, connect with its customers with wider ecosystems. higher technology, more connected, "said Tran Hung Huy - Chairman of the Board.

Based on ACB's prospects for the period from 2018 to 2028, we calculate the discounted cash flow of the current business at a discount rate of 10% per annum, ACB is about VND 79,000 (USD 3,78) per share.
acb intrinsic value 2018 cophieuviet com
ACB Intrinsic Value Calculator

 

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