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HPG [BUY +31.1%] - Dung Quat Steel Complex arrives - Update

Company Research

10 Aug 2018

We reiterate our BUY rating on HPG and trim our target price by 8% to VND48,500/share, as we remain positive on HPG’s construction steel outlook, but increase the WACC. Strong H1 results, with top-line YoY growth of 31%, were driven by volume growth and rising ASP while a widening gap between steel ASP and iron prices supported margins, driving 27% NPAT-MI growth to reach VND4.4tn (USD191.6mn).
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