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DPM - [BUY +37.8%] - Margins to expand despite pricing pressure - Update

Company Research

23 Feb 2016

We revise our target price down by 9.3% to VND 36,300 and keep a BUY rating on DPM based on the following factors: Cheap input gas cost and sustained selling price boosted gross margins. Although revenue increased by only 2.3%, NPAT soared by 35.7% thanks largely to a 36.9% decline in dry gas input cost and stable selling price which fuelled gross margin expansion of 7 percentage points over FY14 to touch 32.3%.
Tags: DPM

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