Initiate coverage with BUY rating with target price of VND62,500
We initiate coverage Mocchau Milk (MCM VN) with a BUY rating and target price of VND62,500 which is based on DCF valuation methodology. Our target price is translated into 2021F PBR of 3.1x, which is a relatively attractive valuation for such an untapped potential company. We believe that Mocchau Milk will be successful in implementing projects, including: 1) enlarging the coverage of "MocChau Milk" brand recognization; 2) upgrading production capacity; and 3) developing premium products. Thus, the company's revenue and profits are expected to grow at a double-digit rate in the period of 2021-25.
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