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DPM - HOLD - Profits drop, but dividend remains attractive - Update

Company Research

28 Aug 2013

We recommend HOLD on DPM with a DCF-derived target price of VND43,900, up from VND41,600 as we adjust 2013 NPAT forecast thanks to better ASPs than expected. Despite falling EPS for the next 3 years (see table below) due to increased competition from Ca Mau Fertiliser (DCM) and weakness in urea prices, valuation is undemanding at a FY13 PE of 5.8x and dividend yield of 6.2% is attractive while liquidity is high (USD1.1mn).
Tags: DPM

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