[NKG/BUY/TP: VND 19,100] - Stand still through the storm


Nam Kim Steel Joint Stock Company (NKG) is one the top 3 largest enterprises in the field of galvanized steel sheets with export markets of more than 50 countries worldwide. Adverse situations in the Steel industry led to Nam Kim's loss results in 2022. However, with the recent increase in the price of HRC steel and the decline in freight rates, we assess that Nam Kim's business situation will turn around, and the company will have a profit in 2023. Besides, healthy financial health and maintained market share are key points to help Nam Kim overcome difficulties against unpredictable fluctuations in the steel industry. Nam Kim Phu My project will be the key driver when the industry rebound as the capacity will be doubled. We offer an initial valuation of NKG stock at a price of VND 19,100 for 22% return. We use DCF and P/E valuation methods with weights of 70% and 30% respectively. 

NKG-Nam Kim Steel
Tien Le

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