- We upgrade our rating for DRC from MARKET PERFORM to OUTPERFORM but cut our target price (TP) by 6% to VND31,700/share. A 17% share price decline over the past four months has put the 2025F P/CF at 18.0x, representing a 16% discount vs a 6-year average of 21.3x.
- Our lower TP is due to our 9% lower aggregate 2025-2030F NPAT-MI forecast with respective cuts of 8%/9%/6% in 2025/26/27F and a 10% average cut in 2028-2030F, which is partly offset by the positive impact of rolling our TP horizon forward to end-2025. This revision reflects a lower blended GPM projection due to our higher rubber price assumptions for 2025-2030F.
- We project 2025F earnings growth of 9% YoY, driven by 10% YoY radial tire sales growth from the bias-to-radial structural shift and US anti-dumping (AD) duties on Thai truck & bus tires (TBR).
Powered by Froala Editor
