CRE – 2021AGM key takeaways

• CRE targets FY21F net profit of VND408bn (+36% yoy), equivalent to 111.5% of our forecast.
• The AGM approved to raise its capital by 35.8% to VND3,643 bn in 2021.
• Reiterate Hold with unchanged TP of VND33,700.

1Q21 brokerage revenue surged 226% yoy, above our forecasts

• The company announced its preliminary 1Q21 brokerage revenue of c.VND500bn, up 226.2% yoy, on the back of an increase in transaction volume to 2,835 units (+101.2% yoy).
• Notably, in Mar 2021, CRE recorded impressive brokerage business results with a total transaction, reaching 1,047 units (+101.7% yoy), bringing c.VND250bn in revenue, the highest level since the company‘s
  inception.

Management targets FY21F net profit of VND408bn, 15% higher than the previous announcement

• Management is guiding for FY21F revenue of VND5,000bn (+136.2% yoy) and net profit of VND408bn (+36% yoy). Thus, the new net profit guidance is 15% and 11.5% higher than the AGM’s published document and our forecast, respectively.
• CRE will strengthen its tie-up with Vinhomes (VHM VN, Add) and distribute its products in 2021. The company is expected to bring c.VND500bn-600bn in revenue this year.
• The management also expects CRE’s revenue to reach about VND8,500-10,000bn in FY22F.

AGM approved to raise its capital by 35.8% to VND3,643bn in 2021 of
which:

• About 4,799,990 shares (equivalent to 5% total outstanding shares), which are expected to be issued  at VND10,000/share for CRE’s employees in 2021F.
• The company will issue 91,199,810 new shares (equivalent to 95% total outstanding shares) for existing shareholders at a discounted price of VND10,000/share. The issuance would only be considered successful if it can raise 80% of the planned amount.
• The company will pay a stock dividend of 10%

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