Duc Giang Chemicals Group JSC (DGC) is one of the leading enterprises in the field of industrial chemicals in Vietnam and yellow phosphorus is the main product. Based on DCF method, we value DGC for the first time at 87,000 VND, equivalent to a 18.5% return. We expect a sustainable growth in revenue and profit in the long-term, due to (1) The leading producer of yellow phosphorus (P4) in Vietnam, (2) From 2023, DGC has increased ore self-sufficiency rate to reduce production costs and (3) The numerous potential projects including Duc Giang Nghi Son chemical complex and Dak Nong bauxite are the key growth drivers from 2024 onwards.
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