[NKG/BUY/ TP: VND 26,700] - The situation becomes brighter


Nam Kim Steel JSC (NKG) is the top 3 largest enterprises in the field of galvanized steel with export markets to more than 50 countries globally. Due to adverse situation in the steel industry, Nam Kim's business results were affected, however, the situation has gradually improved and Nam Kim started to have profit since Q2/2023. With the recent increase in the price of HRC steel and the decrease in freight rates, we assess that Nam Kim's business situation will turn around and improve strongly in 2024. Along with that, Nam Kim Phu My project contributes to doubling capacity and will help Nam Kim grow strongly when the steel industry recovers. We update price for NKG shares at 26,700 VND, corresponding to a profit of 17%. We use DCF and P/E valuation methods with weights of 70% and 30%, respectively.

NKG-Nam Kim Steel
Tien Le

Page: 0


File format: pdf

Size: 666.05 KB