Buy recommendation for HPG stock
According to DSC Securities Company, by the end of the third quarter of 2024, although maintaining growth momentum compared to the low base of last year, the business results of Hoa Phat Group Joint Stock Company (HPG) showed signs of slowing down compared to the previous quarter. Specifically, revenue in the third quarter reached VND 33,956 billion (+19% over the same period last year, -14.2% over the same period last quarter); profit after tax (LNST) in the third quarter reached VND 3,022 billion (+51% over the same period last year, -9% over the same period last quarter).
Q3 business results slowed down as expected by DSC, under the pressure of falling construction steel and HRC prices and low-season steel consumption. In 2025, DSC forecasts revenue and after-tax profit to reach ~175,000 billion VND and 40,000 billion VND, respectively, under the condition that demand from public investment and civil real estate continues to recover, contributing to output from Dung Quat 2 project, HRC prices increase by 8-10% compared to the same period last year.
DSC maintains the valuation for HPG shares for 2025 at VND 32,000. With a safe buying range of about VND 25,000-26,000, equivalent to a P/B valuation of 1.4x.
Buy recommendation for QNS stock
Also according to DSC, the Q3 business results of Quang Ngai Sugar Joint Stock Company (QNS) were relatively positive with improved revenue in both core business segments of sugarcane and milk.
DSC believes that QNS's profit margin will improve by 100-150 basis points in 2025 compared to this year thanks to expectations: a slight increase in domestic sugar prices and a cooling exchange rate that will help reduce soybean import costs. Estimated net revenue in 2025 will reach VND11,150 billion (+4% YoY), after-tax profit will reach VND2,309 billion (+5% YoY). The target price for QNS shares in 2025 is VND58,400/share, equivalent to a projected P/E of 9.3x.
DSC recommends investors to disburse at a safe price range of VND 49,000-49,500/share.
Buy recommendation for DXG stock
According to KB Securities Vietnam (KBSV), Dat Xanh's (DXG) revenue in the third quarter of 2024 reached VND 1,013 billion (down 17%), while the parent company's after-tax profit was VND 31 billion (down 55%). Accumulated in the first 9 months of 2024, revenue reached VND 3,204 billion (up 39%) and after-tax profit reached VND 95 billion (down 27%).
KBSV expects DXG's business activities to improve in the coming time, specifically: Brokerage activities maintain recovery momentum, contributing VND 1,228 billion (+104% over the same period last year) and VND 1,372 billion (+12% over the same period last year) to revenue in 2024-2025 and Opening of the DXH Riverside project from the second half of 2025, contributing about VND 24 trillion to DXG's sales in 2025-2028.
KBSV estimates DXG's revenue in 2024 and 2025 to reach VND4,744 billion (+27% YoY) and VND4,573 billion (-4% YoY); parent company's after-tax profit will reach VND162 billion (-6% YoY) and VND330 billion (+103% YoY), respectively. The results come from the handover of the Opal Skyline and Gem Sky World projects and brokerage activities recovering from the low base of 2023.
DXG shares are currently trading at a P/B 2025fw of 1.1x, lower than the 5-year average P/B of 1.3x. Based on the valuation results, we recommend buying with a target price of VND20,600/share, 20% higher than the closing price on November 26, 2024. However, KBSV notes the risk that if the market recovers more slowly than expected and the progress of launching new projects continues to be delayed, it will significantly affect DXG's cash flow.
►Stock market commentary November 28: VN-Index may retest the 1,245 point threshold
Source: https://baohaiduong.vn/mot-so-co-phieu-can-quan-tam-hom-nay-399116.html
Comment (0)