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NKG [MARKET PERFORM +4.2%] - Operating profit sufficient to cover interest expenses - Update

Company Research

29 May 2020

We maintain our MARKET PERFORM rating for NKG while raising our target price by 8% to VND8,000/share, mainly as we revise up our 2020/2021F NPAT-MI forecasts by 160%/43% due to a better-than-expected gross margin recovery in Q1 2020. As we expect economic disruption from COVID-19 to peak by the end of Q2 and business activity to substantially normalize during the course of Q3 2020 — in addition to NKG’s Q1 2020 sales performance being in-line with our expectation — we maintain a 2020/2021F
Tags: NKG

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