Company Insight

Hoa Phat Group Joint Stock Company (HPG) is one of the leading steel enterprises in Vietnam. Hoa Phat holds the largest market share in construction steel and steel pipes with 35% for construction steel and 29% for steel pipes. In the context of the steel industry downturn, we assess that Hoa Phat will still maintain its leading position and begin to have markedly improved results in 2024. We offer an initial valuation of HPG at the price of 26.100 VND corresponding to a profitability of 24%. We recommend buying HPG shares with the following views:

1. Profit margin improved thanks to recovering steel price and falling coal price
2. Maintain the leading position in the steel industry
3. Prospects of Dung Quat 2 project to support long-term growth