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NKG [MARKET PERFORM +8.1%] - Competition and higher HRC cost to drag on earnings - Update

Company Research

07 Sep 2018

We downgrade NKG to MARKET PERFORM and lower our target price by 11% to VND14,000/share mainly due to higher WACC along with a muted growth outlook amid tough competition in the local market and elevated HRC input cost. NKG’s H1 results continued to show a significant divergence between top and bottom lines, with revenue growing 44% YoY on the back of enduring volume growth, but a depressed margin caused NPAT-MI to plummet by 34%, which is in line with other players in the galvanized steel
Tags: NKG

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