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Analyst Pin-board DGC – Yellow phosphorus price is skyrocketing, driving the stock price recently

·         2Q2021 revenue of VND2,039bn (USD90.6mn) (+29.3% YoY) while NPATMI of VND322bn (USD14.3mn) (+26.2% YoY).

·         DAP is estimated to contribute the most to total sales in 2Q2021 as well as 1H2021.

·         ASP of P4 to improve in 2H2021 but the output may be lower owing to the Apatite shortage for production.

·         Long term catalysts from real estate project and Nghi Son project.

·         3Q2021 net profit is estimated to increase by 90.6% YoY - 99.1% YoY to VND450bn – VND470bn (USD20mn – USD20.9mn). At this current price, DGC stock is being traded at PE trailing of 24x.

Underlying
Ducgiang Chemicals & Detergent Powder

DucGiang Chemicals Group Joint Stock Company, formerly DucGiang Chemical and Detergent Powder Joint Stock Company, is a Vietnam-based company engaged in the chemical manufacturing industry. The Company's main products include Yellow Phosphorus, Phosphoric Acid, Natri Tripolyphosphate, Linear Alkylbenzensunfonic Acid, and detergent and other cleaning chemicals. The Company's business activities comprise the manufacture and trade of chemical products, rubber, paint, plastic, fertilizers, ferrous metals, and food additives.

Provider
Viet Dragon Securities
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
Son Tran

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