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HPG [BUY +33.7%] - Back to the real game with no more price cushion - Update

Company Research

29 May 2017

We reiterate our BUY rating for HPG with a target price of VND37,700 per share (prices are adjusted for the upcoming 5:1 rights issue with the issuance price at VND20,000 per share). Continuing strong construction steel sales volume and high gross margin drove Q1 2017 net revenue and NPAT-MI growth of +44% and +90% vs Q1 2016, respectively. We adjusted FY17 gross margin assumption from 24.7% to 24.4% to reflect higher-than-expected normalization from last year’s high base and upcoming risk
Tags: HPG

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