Viet Dragon Securities - Construction Material Industry 2025 - FOCUSING ON THE DOMESTIC MARKET

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Viet Dragon Securities

Thach Lam Do

Construction Material Industry 2025 - FOCUSING ON THE DOMESTIC MARKET

The steel industry (a major segment within the building materials group) is expected to perform positively in 2025, driven by: 1/ Production growth, led by domestic demand; 2/ Anti-dumping investigations: These efforts protect the market share of domestic manufacturers; 3/ Recovery in selling prices: The pressure from imported steel (especially from China) is expected to ease in 2025. The plastic construction materials industry is also projected to experience a recovery in production volume alongside the recovery of the residential real estate market; additionally the advantage of low raw material costs is expected to continue into 2025.

HPG (Buy, Target Price: VND 35,800/share) is our preferred stock for 2025 as the company will commence operations at Dung Quat 02 (Phase 1) and fully benefit from the positive industry outlook. Due to negative prospects in export markets, the revenue of coated steel companies is anticipated to remain modest compared to the estimated results for 2024. However, HSG (Buy, Target Price: VND 23,000/share), with expectations of no more provisions for inventory devaluation, leading to significant net profit growth, and GDA (Buy, Target Price: VND 38,700/share), with long-term high growth potential following capacity expansion investments, are two coated steel stocks that investors may consider after HPG

13/01/2025 24 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Thach Lam Do

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Construction Material Industry 2025 - FOCUSING ON THE DOMESTIC MARKET

STRONG VOLATILITY

DCM - The thrust from selling price is not strong enough

RETESTING THE 1,200 AREA

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