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HPG [O-PF +16%] - Strong sector sales support local steel price - Update

Company Research

17 Jul 2015

We re-iterate OP rating for HPG & revise up TP by 10.2% to VND33,500 (TSR 15.9%) on the surprising core margin expansion in 2Q15A and 75k ton upside in 1H15 construction steel sales on inventory clearance (equivalent to 6% of previous FY forecast). Key margins for steel business have not been disclosed but within the context of continued pressured domestic ASPs and high volume growth.
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