HPG [BUY +23.4%] - Q1 results support high growth outlook for 2024/25 - Update
  • 2024-05-16T00:00:00
  • Company Research

- We maintain our BUY rating for HPG and raise our target price (TP) by 11% to VND39,000/share. 

- We keep our aggregate 2024-2028F NPAT-MI broadly unchanged. Our higher TP is mainly because 1) we roll our TP forward to mid-2025 and 2) we apply a lower WACC in our DCF valuation. We maintain our target P/E of 18.0x to capture HPG’s high growth phase in 2024-2025.

- HPG’s Q1 2024 NPAT-MI of VND2.9tn (USD114.8mn, +622% YoY) was in-line with our expectation. Strong growth was driven by 1) healthy growth of key steel products from 2023’s low base and 2) margin expansion due to an expanding input-output spread.

- We maintain our 2024F sales volume assumptions for HPG’s steel products, expecting continued recovery in both domestic and export demand.


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