Company Insight

Hoa Phat Group Joint Stock Company (HPG) is one of the leading steel enterprises in Vietnam. We offer an initial valuation of HPG at the price of 34, 000VND corresponding to a profitability of 31%. We use P/E and DCF valuation methods with weights of 50% and 50% respectively, with the following key arguments: (i) Vietnamese steel "tycoon" with the prospect of Dung Quat 2 project, (ii) "nudge" from the Civil Real Estate Market and Public Investment, (iii) Improved profit margin thanks to low input costs, (iv) Anti-dumping tax (CBPG) on imported HRC help reduce domestic competitive pressure.