·         Selling volume in the domestic market recovered from roughly 10,000 tons in August to roughly 20,000 tons in September. Meanwhile, export volume was stable at roughly 82,000 tons in September, of which 85%-90% were exported to the Europe and North America.

·         The company sold roughly 275,000 tons of products in 3Q, rising by 32% YoY. Export volume increased strongly by 39% QoQ and 128% YoY to reach 224,000 tons in 3Q, contributing 81.5% to total selling volume.

·         NKG plans to expand the steel pipe production capacity from 180,000 tons per year (tpy) to 300,000 tpy and increase coated steel production capacity by 30% from 1.0 million tpy to 1.3 million tpy in 2Q/2022.

·         We adjust 2021 NPAT forecast to VND 2.890 billion (+28% compared to the previous projection) due to increasing gross margin in foreign markets.

·         Based on the FCFF and PER methods, we recommend investors BUY this stock with a target price of roughly VND 62,000/share. Together with a cash dividend in the next 12 months of VND 1,000/share, the total return is 30% as of the closing price of VND 48,550 on October 13th, 2021.