Company Insight

Binh Duong Water - Environment JSC (HSX: BWE) is one of the leading enterprises in the water and environment industry in Vietnam. BWE has a sustainable business model with steady growth and a promising development strategy. For a long-term view, BWE is an investment that can be considered thanks to the following advantages:

1) Effective business model, strong financial health;

2) The demand for water and the selling price of water have grown steadily;

3) The waste treatment segment still has a lot of room for development;

4) Development strategy and M&A have many prospects, promising a bright future.

By using FCFF and P/E valuation methods, weighting at 40%-60%, respectively, we initiate coverage of BWE with a BUY rating, at target price of VND 55,750.

We expect the net profit of BWE to grow at CAGR of 8.2% over the period 2024-2028 thanks to the stable growth in both demand and unit price.