Analyst Pin-board HPG – Profits to Recover from Q4
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· Steel production costs could drop significantly in Q4. · Selling prices started to regain, but slowly. · Q3 to be the trough of 2022 profit; construction steel to recover more quickly than flat steel. Q3 revenue and PAT could come at VND 33,821 bn (-12.5% YoY) and 3,325 bn (-78% YoY). · Dung Quat 2 update: Commencing on May 2022, the project is in the land clearance stage. Phase 1 will come into operation from mid-2024 and phase 2 from end-2024. · HPG stock is trading at PER of 4.5, significantly lower than average PER of 8.3 in the last 5 years. As the profit of 2H2022 is expected to be low, compared to the hike of 2H2021, there will not be much accelerate momentum for stock price until the end of the year, per our view. Our valuation is being revised to reflect the new developments in demand in the large markets and the effects of recent selling price rises. We currently have a target price of VND 33,000/share, equivalent to a total return of 43%, based on the closing price of September 20th, 2022. |
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.
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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