Initial Coverage HPG March 2023 (English Version)
Initial Coverage HPG March 2023 (English Version)
We recommend a BUY for HPG stock with one-year target price of VND25,060 per share (an upside of 21.1% compared to March 28, 2023) based on the following factors: (1) Steel industry hit a bottom in 4Q 2022 and 1Q 2023, and is predicted to recover from 2Q 2023 thanks to global steel prices rise in early 2023 and recovering domestic and export demand; (2) We expect HPG restart all 4 blast furnaces in May 2023; (3) Profit margin is likely to improve as the company is desired to reverse the provision already set aside in 2022.