We forecast that PVD’s revenue will decrease by 16% in 2025 and increase by 11% in 2026 due to the lack of plans to utilize leased rigs in 2025 as it did in 2024. However, post-tax profit grew by 5% and 23%, respectively, thanks to improved profit margins as PVD utilizes newly acquired rigs, and rental rates are forecast to increase slightly in 2026. Based on an FCFF model, our target price for PVD is VND29,900/share, corresponding to a 2025 forward P/B of 1.04x. We consider this valuation to be fair, given PVD’s expected long-term growth. Thus, we issue an OUTPERFORM rating for PVD with an upside of 27.2%.

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Please find the attached file below.