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HPG [BUY +33.0%] - Positive Q1 lays solid foundation for transitional year - Update

Company Research

11 May 2018

We reiterate our BUY rating on HPG and trim our target price by 4% to VND74,100/share as we maintain our key assumptions for HPG’s construction steel segment, but increase the WACC. Solid Q1 results with strong top-line YoY growth of 27% was supported by both healthy volume growth and selling price increases. Meanwhile, margins remained resilient despite the industry-wide downward margin trend, driving 14% NPAT-MI YoY growth.
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