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HSG [SELL -24.0%] - Struggling for a turnaround - Update

Company Research

19 Sep 2018

We maintain our target price for HSG at VND9,200/share given a muted growth outlook amid tough competition in the local market and elevated HRC input cost. We downgrade to a SELL rating as we conservatively expect HSG not to pay a cash dividend going forward as cash will be retained to pay down debt and fund working capital. Weak 9M FY2018 results continued to show a divergence between growth rates in net revenue (VND25.9tn/USD1.1bn, +35% YoY) and NPAT-MI (VND512bn/USD22.3mn, -55% YoY)
Tags: HSG

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