Analyst Pin-board HPG – NPAT remains high in 4Q owing to stronger selling volume
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· Steel production costs can remain stable in 4Q as iron ore and coking coal prices moved in opposite direction. · Construction steel segment’s GPM will be flat, while HRC’s can decrease caused by weakening selling prices in 4Q. · NPAT can remain high in 4Q as selling volume has been recovering. · For 1H2022, while the construction steel segment’s gross margin can remain stable, profitability in the flat steel segment is forecasted to decrease. · Regarding Dung Quat 2 steel plant, the company is processing the land cleaning stage and plans to start the building stage in early-2022. The first one is expected to come into operation in the second half of 2023. · Based on the FCFF and PER methods, we recommend investors BUY this stock with a target price of roughly VND 63,000/share. Together with a cash dividend in the next 12 months of VND 500/share, the total return is 40% as of the closing price of VND 45,100 on December 22nd, 2021. |
Hoa Phat Group JSC. Hoa Phat Group Joint Stock Company is a Vietnam-based company primarily engaged in the steel sector. The Company's operation is organized under four segments, including Steel segment, which manufactures steel and cast iron in various forms, such as sheets, bars, rolls and pipes, as well as steel-making materials and steel drawing machinery; Industrial segment, which produces and trades construction and mining vehicles and equipment, along with household appliances, refrigerators, home and office furniture; Agriculture segment, which farms cattle and poultry, processes and preserves meat, as well as manufactures and distributes animal feeds, fertilizers and agricultural supplies, and Real Estate segment, which constructs civil engineering projects and leases houses, offices and land.
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