Viet Dragon Securities - Petrovietnam Fertilizer Chemical JSC (DPM) Analyst Pin-board DPM – Bottom line to hike on the back of increasing Urea price

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Viet Dragon Securities

Son Tran

Analyst Pin-board DPM – Bottom line to hike on the back of increasing Urea price

· Revenue and profit grew 64.7% and 350.8% respectively in 2021 thanks to the strong increase of fertilizers price and chemicals as well as extraordinary profits.

· 1Q2022 business results are expected to remain high thanks to positive fertilizer prices in the context of the Russia-Ukraine conflict, which may lead to a global shortage of urea.

· We believe that 2022 business results will post growth instead of decline as previous forecast, and raise the 2022 earnings forecast from VND1,676 bn (USD 73.5 mn) to VND5,004 bn (USD 219.4 mn) due to the change in fertilizer price forecast.

· Recommend BUY with a target price of 73,100 VND/share. However, investors must be especially careful with fertilizer price movements related to geopolitical fluctuations surrounding the Russia-Ukraine war.

· Downside risk from restricting fertilizer export.

15/03/2022 7 EN

Underlying

Petrovietnam Fertilizer & Chemical JSC

PetroVietnam Fertilizer and Chemicals Corp. PetroVietnam Fertilizer and Chemicals Corporation is a Vietnam-based manufacturer of agricultural chemicals. It manufactures and trades diversified fertilizer products, including urea fertilizers; nitrogenous phosphatic potassic (NPK) fertilizers, liquefied ammonia, as well as other industrial gases and chemicals used for oil and gas exploration and refinery. The Company is also involved in the provision of technical services in fertilizer and petrochemical production.

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VN000000DPM1 Hochiminh Stock Exchange Vietnam

Provider

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.

RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”

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Analysts

Son Tran

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Analyst Pin-board DPM – Bottom line to hike on the back of increasing Urea price

DPM – 3Q23 earnings results worse-than-expected

DPM – 2H23 earnings could be more positive regardless of unimpressive 1H23 business results

DPM – Lower earnings in 2023 but attractive cash dividend

THE GROWTH TREND IS STRENGTHENED FURTHER

Maintaining a green color

GMD - A bright picture in Q1-FY24

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