FY21 net profit of VND777b (+5% YoY) was 9% below our forecast on a surprisingly weak 4Q21 (sales -10% YoY, net profit -19% YoY). We project FY22E net profit to grow 7.8% YoY (vs 5.9% previously) and our FY22E EPS is cut 7% to VND6,261. Using an unchanged target P/E of 18.8x, we arrive at a TP of VND116,865. DHG’s stock price has retreated 25% since Dec’21 to what we view as a fair level of 19x T12M P/E, from +2SD above its 2-year mean of 20x in Dec’21. Maintain HOLD.
KE: DHG Pharma – Stable outlook, fair valuation (DHG VN, CP VND111,500, HOLD, TP VND116,865, Consumer Discretionary)
