{"id":25440,"date":"2019-07-15T09:51:40","date_gmt":"2019-07-15T02:51:40","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=25440"},"modified":"2019-07-15T09:51:40","modified_gmt":"2019-07-15T02:51:40","slug":"stb_1h19-confidence-boosted-on-strong-1h19-preliminary-results","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/stb_1h19-confidence-boosted-on-strong-1h19-preliminary-results","title":{"rendered":"[STB_1H19] Confidence boosted on strong 1H19 preliminary results"},"content":{"rendered":"<h1><strong>BUY<\/strong><\/h1>\n<p>Current price (07-15-19): VND 11,400<br \/>\nTarget price: VND 14,049<br \/>\nUpside: 23.2%<\/p>\n<p><strong>Event catalysts:<\/strong><\/p>\n<ul>\n<li>Operational turnaround as legacy bad debt problems are resolved and underlying business continues to improve.<\/li>\n<li>Management\u2019s real estate expertise underlines the NPL restructuring story.<\/li>\n<li>LDR is lower than peers and the regulatory cap, implying potential NIM outperformance vs the sector<\/li>\n<\/ul>\n<p style=\"text-align: left\"><strong>Preliminary 1H19 PBT of VND1.5 tn (+51% YoY)<\/strong> completed 55% of STB\u2019s 2019E target and 65% of our forecast. The implied 2Q19 PBT of VND500bn was down c.50% QoQ. We believe that much of the apparent QoQ lumpiness is due to recognition of loan loss recoveries. However, STB reported VND1.4 tn in 1H19 netfee income, up 23.5% YoY, indicating positive underlying momentum.<\/p>\n<p style=\"text-align: left\"><strong>Asset quality continues to improve.<\/strong> STB handled VND11 tn of legacy assets during 1H19, exceeding the bank\u2019s full-year target of VND10 tn. Audited 1H19 financial disclosures have not been released, but we estimate that total nonperforming assets decreased to VND73 tn (or 17% of total assets). Admittedly, this is a very high number, but the trend is your friend: NPAs peaked at 27% of assets in 2017A, before falling to 20% in 1Q19 and 17% in 2Q19E. STB\u2019s reported NPL ratio decreased to 1.96% in 2Q19E from 2.11% in 2018A.<\/p>\n<p style=\"text-align: left\"><strong>Our view:<\/strong> Positive NPL restructuring progress confirms our confidence in STB as a turnaround story as the bank works through its legacy NPAs. We reiterate our BUY rating (see our<a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/01\/STB_Initiation_January-2019-Final-1.pdf\"> initiation<\/a> for details) and recommend a barbell approach focused on VCB (BUY \u2013 for a quality core holding) and STB (for greater upside).<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/07\/STB_1H19-results-boost-confidence-in-the-turnaound-story.pdf\">STB_1H19 results boost confidence in the turnaound story<\/a><\/p>\n<p><strong>Analysts: <\/strong><strong>Tanh Tran<\/strong>,\u00a0<em>tanh.tran@yuanta.com.vn<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>BUY Current price (07-15-19): VND 11,400 Target price: VND 14,049 Upside: 23.2% Event catalysts: Operational turnaround as legacy bad debt problems are resolved and underlying business continues to improve. Management\u2019s real estate expertise underlines the NPL restructuring story. LDR is lower than peers and the regulatory cap, implying potential NIM outperformance vs the sector Preliminary&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-25440","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-financials"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v23.3 (Yoast SEO v23.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>[STB_1H19] Confidence boosted on strong 1H19 preliminary results | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"BUY Current price (07-15-19): VND 11,400 Target price: VND 14,049 Upside: 23.2% Event catalysts: Operational turnaround as legacy bad debt problems are\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta 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