Vietnam National Petroleum Group (PLX) is a pioneer in Vietnam's petroleum distribution sector, with more than 50% market share. PLX is the leading player in terms of distribution network and operational efficiency. Based on the FCFF method, we recommend a buy for PLX at a valuation of VND45,100. For a long-term view, PLX can be considered with the following advantages:
1) The leading position in the domestic petroleum distribution segment with more than 50% market share;
2) The strong domestic consumption for petroleum products in Vietnam;
3) The financial performance is epected to see a significant upturn in 2023 from a low base in 2022 and the divestment will be a plus catalyst for the stock price.
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