(Yuanta) BCG(BUY+38.36%) – Expect renewable energy projects to be on schedule

Recommendation: BUY

Closing price (VND): 8,300
Target price (VND): 11,484
Listed on: HOSE – Industry:  Special finance (ICB: L4)

Updates on progressing projects

Real estate projects

King Crown Village Thao Dien is still under construction and BCG expects to receive revenue from this project in Q4/2020. Meanwhile, Malibu Hoi An is affected by disadvantage weather and beside that COVID -19 pandemic also affect project process which is open-for-sale day for other product (102 condotels and 55 villas). We assumpt there is a high chance that BCG can not receive revenue from Malibu Hoi An in 2020 due to the affection of COVID-19 to tourism industry on overall and especially on resort real estate.

On 20 Octorber 2020, BCG held a groundbreaking event for Casa Marina Premium project. This is a 5 stars premium resort which consist of 64 semi-detached villas, 80 detached villas and 16 VIP villas. This projects’s total land area is at 12ha and is built on a side hill which is heading to Quy Nhon bay. Casa Marina Premium is operated by the world leading hotel management – Radisson Hotel Group under the brand name Radisson Blu Quy Nhon.

Another real estate project that BCG’s progressing – King Crown Infinity, this is a residential and comercial complex building with 30 floors and 5 basement floors. This projects located at 218 Vo Van Ngan str, Binh Tho ward, Thu Duc district, HCMC with total land area at 1.26ha. BCG is currently on the edge of completing paper work and hold a groundbreaking event for King Crown Infinity in the late of 2020.

Renewable energy projects 

All BCG’s renewable energy are on schedule, especially Phu My project (330MWp) is on a rush of constructing to have phase 1 (129MWp) reached COD before 31 December 2020. Beside that 80MWp of phase 2 is also expected to reach COD in 2020.  

Another renewable energy project of BCG which is also in a rush to reach COD in 2020 is VNECO Vinh Long. This project’s total investment is 37 million USD with total capacity at 49MWp and expected to generate 84.4 million kWh annually.

Two operational projects which are BCG-CME Long An 1 & 2 can generate approximately 16 million kWh monthly. BCG-CME Long An 2 project had reached COD in August 2020 and then reach partially COD in September 2020 (75/100.4 MWp design capacity), the rest capacity is expected to be completed in November 2020.

Valuation 

We give a BUY recommendation to BCG share with target price at 11,484 VND/share, equivalent to 38.36% upside toward today closing price. 

Source: https://yuanta.com.vn/phan-tich/bcg-ky-vong-mang-nltt-kip-tien-do-trong-nam-tg-8-300-mt-11-484-mua