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HPG - HOLD - Hold for now, Buy for later - Results

Company Research

24 Dec 2012

We downgrade HPG from BUY to HOLD as the share price reached our target price, with target P/B of 1x and FY13 book value of VND20,800. Our recommendation reflects our neutral view on the company’s FY13 outlook for domestic steel and real estate. However, we believe that there will be two chances to purchase Vietnam’s most profitable steel company: when the company partially books provision for its 10% investment in Hoa Phat Steel, and the operation of the coke 2 factory.
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