{"id":45554,"date":"2020-01-16T09:58:25","date_gmt":"2020-01-16T02:58:25","guid":{"rendered":"https:\/\/yuanta.com.vn\/?post_type=phan-tich&#038;p=45554"},"modified":"2020-01-16T09:58:25","modified_gmt":"2020-01-16T02:58:25","slug":"acb_analyst-meeting_key-takeaways","status":"publish","type":"phan-tich","link":"https:\/\/yuanta-uat.ysvn.com.vn\/en\/analysis\/acb_analyst-meeting_key-takeaways","title":{"rendered":"ACB_Analyst Meeting_Key Takeaways"},"content":{"rendered":"<h3><span style=\"font-size: 18pt\"><strong>Event<\/strong><\/span><\/h3>\n<p>ACB held an analyst meeting to discuss their preliminary 2019 results and strategy\/outlook for 2020.<\/p>\n<p>Key takeaways<\/p>\n<p><strong>Preliminary credit growth reached 17% YoY in 2019<\/strong>, much higher than the initial target of 13% disclosed at the beginning of the year.<\/p>\n<p><strong>Preliminary PBT reached VND1.9 tn in 4Q19, up +2.1% QoQ and +5.5% YoY. <\/strong>Preliminary full-year 2019 PBT was VND7.5 tn (+17.6% YoY), completing 103% of the bank\u2019s full-year target for 2019.<\/p>\n<p><strong>Asset quality remains strong<\/strong>. The NPL ratio was only 0.54% in 2019P (-16bps YoY), and NPL coverage ratio was 165% (+13 ppt YoY).<\/p>\n<p><strong>Management targets to reach 15% credit and deposit growth in 2020E<\/strong>, pending SBV approval. CAR (Basel 2) was 11% in 2019.<\/p>\n<p><strong>Fee income is the key driver for revenue growth<\/strong> <strong>going forward<\/strong>, especially bancassurance, card services, and trade services. ACB is considering a bancassurance exclusivity deal, but nothing is finalized and they do not expect a deal to be completed until at least 2H20.<\/p>\n<p><strong>Aggressive customer growth target.<\/strong> Management targets 1.0 million new customers, mainly individuals (950,000 clients), in 2020E. That would bring ACB\u2019s total client base to 3.8 million.<\/p>\n<p><strong>Targeting VND8.7 tn in PBT in 2020E<\/strong> <strong>(+15.7% YoY)<\/strong>. Guidance is for a 20% stock dividend and 10% cash dividend in 2020E.<\/p>\n<p><strong>ACB Securities divestment is unclear.<\/strong> Management did not mention the timeline of a potential divestment or discuss the possible buyer.<\/p>\n<p><strong>HOSE listing <\/strong>is still pending and ACB has no clear timeline for this.<\/p>\n<h3><strong><span style=\"font-size: 18pt\">Our view<\/span><\/strong><\/h3>\n<p><strong>ACB appears to be a <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/11\/Banks_CAMEL_11.11-3Q19_Updated.pdf\">relatively strong bank fundamentally<\/a>, <\/strong>given its strong capital ratios and asset quality.<\/p>\n<p><strong>Bancassurance (+151% YoY) is a key driver of fee income, accounting for 30% of the total fees in 2019. <\/strong>We expect the potential bancassurance exclusivity deal to be a key topic of interest in 2020.<\/p>\n<p><strong>Cheap valuation.\u00a0 <\/strong>We don\u2019t cover ACB and have no investment opinion on the stock. However, the valuation looks cheap given its 2020E P\/BV of 1.1x (in line with the sector median) while Bloomberg consensus 2020E ROE of 22% is higher than the\u00a0 sector median of 20%. We attribute the discount as being largely due to\u00a0 the bank\u2019s full-FOL status. The likely 1Q20 launch of the <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2019\/12\/Strategy-Of-FOLs-and-Money_The-Diamond-Edition.pdf\">VN Diamond ETF<\/a> is not a catalyst for this full-FOL stock because it is not part of the HOSE-designated index. Thus, an eventual HOSE listing could be a priority for ACB.<\/p>\n<p>For the complete report, please access here: <a href=\"http:\/\/yuanta-uat.ysvn.com.vn\/wp-content\/uploads\/2020\/01\/ACB_Analyst-Meeting_Key-Takeaways.pdf\">ACB_Analyst Meeting_Key Takeaways<\/a><\/p>\n<p><strong>Analyst: Tanh Tran<\/strong><em>, tanh.tran@yuanta.com.vn<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Event ACB held an analyst meeting to discuss their preliminary 2019 results and strategy\/outlook for 2020. Key takeaways Preliminary credit growth reached 17% YoY in 2019, much higher than the initial target of 13% disclosed at the beginning of the year. Preliminary PBT reached VND1.9 tn in 4Q19, up +2.1% QoQ and +5.5% YoY. Preliminary&#8230;<\/p>\n","protected":false},"author":10,"featured_media":0,"template":"","class_list":["post-45554","phan-tich","type-phan-tich","status-publish","hentry","analysis-category-company-update","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>ACB_Analyst Meeting_Key Takeaways | Yuanta Vietnam<\/title>\n<meta name=\"description\" content=\"Event ACB held an analyst meeting to discuss their preliminary 2019 results and strategy\/outlook for 2020. 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