Result Update Report: NKG - Temporary fall before returning to high growth
“We estimate NKG’s fair value at VND 25,200/share in a one-year vision, reflecting the prospect of global high inflation and high uncertainty of the global supply chain in the coming quarters. We believe Q3 is the trough of 2022 profits but the growth momentum will not come back sooner than Q3/2023. For the longer term, growth engine will be enhanced from 2024 to 2027 in terms of both volume and profitability with the investment and operation of the new factory Nam Kim Phu My. At the current market price, the forward PERs are 9.1x for FY2022 and 7.3x for FY2023. Compared to the average PER of 6.5x of the last two years, it is reasonable for a BUY recommendation. The total return is 30%, based on the closing price as of September 27th, 2022.”
Nam Kim Steel Joint Stock Company is a Vietnam-based company operating in the steel industry. The Company is engaged in the manufacturing of hot-dip 55% zinc-aluminium alloy coated steel branded Naki Zincalum, hot-dip zinc coated steel branded Naki Zinc, pre-painted zinc coated steel and pre-painted zinc-aluminium coated steel branded Naki Color, galvanized steel pipe and black steel pipe branded Naki Pipe, hot-rolled steel sheet in coil and cold-rolled steel sheet in coil. It is also involved in the trading of various types of steel products and the provision of ground freight transportation services.
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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