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DPM - HOLD - Downgrading on 2013 profit fall - Results

Company Research

06 Nov 2012

We downgrade DPM from BUY to HOLD, with a revised target share price of VND35,800 (3% upside). Our action reflects the recent rejection of DPM’s plan to acquire a controlling 51% stake in Camau Fertilizer (DCM), though DPM will continue to be the exclusive distributor of DCM’s urea products, supplying 80% of domestic demand. More importantly, 3Q net income fell 32% yoy, and we look for another 18% profit decline in FY13.
Tags: DPM

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