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DCM - NON RATED - Gas input price set to guarantee an ROE of 12% - Pre IPO

Company Research

03 Dec 2014

Ca Mau Fertilizer (DCM), the second urea producer in Petro Vietnam Group will conduct its IPO on Dec 11th with 128mn shares on offer or 24.36% of share capital. PVN will regulate input gas price sold to DCM to ensure a guaranteed ROE of 12% during 2015-18. At the IPO price of VND12,000/sh, DCM’s FY15 EV/EBITDA at 5.6x and PER at 8.7x is 32% and 14% lower than DPM, its sister company, respectively. Currently there is no plan to pay dividends although they were paid in the past.
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