DGC [BUY +22.1%] - Chip demand to strengthen, ASP continues trending up - Update
  • 2024-10-29T00:00:00
  • Company Research

- We raise our target price (TP) by 10% to VND134,000/share and upgrade our rating for DGC from OUTPERFORM to BUY. Our higher TP is due to rolling our TP horizon forward from mid-2025 to end-2025, which outweighs a 12% reduction in our 2025-27F aggregate NPAT-MI projection.

- We lower our respective NPAT-MI forecasts for 2024/25/26F by 6%/11%/13%, as we anticipate (1) a lower agricultural phosphate (AP) sales volume in 2024F and (2) a slower average selling price (ASP) recovery in 2025/26F. Despite this, our new NPAT-MI forecast still translates to robust growth of 37%/22% YoY in 2025/26F, respectively.

- We maintain our assumption that DGC’s ethanol factory will become operational in Q4 2024, and its chlor-alkali project will begin operating in Q4 2025.


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