Cienco4 – Update – 20181123

• Cienco4, an infrastructure (infra.) construction specialist, is going to list on the UPCOM in Dec-2018. We recently issued a prelisting note but revisit our target price here as the recent stock market correction necessitates a de-rating of the company despite an upward revision to our 2018 earnings forecast.
• The company reported VND2,337bn in 9M18 revenue (-10.9% yoy), to come in at 75% of our new FY18F
• VND52bn of loss from associates mainly due to stalled operations of BOT Thai Nguyen – Cho Moi
• We think the company will find it difficult to meet its 2018 guidance (VND5,200bn of revenue, +28.4% yoy and VND200bn of net profit, +50.4% yoy)

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