- CSV is a leading producer of basic chlor-alkali chemicals in Vietnam and the largest commercial producer in southern Vietnam, serving demand from the industrial manufacturing sector. The two key chlor-alkali products are caustic soda (NaOH) and chlorine (Cl2)

- Q1 2022 NPAT-MI soared 149% YoY thanks to high chemical prices. Q2 2022 (1) had even higher average market NaOH and sulfuric acid prices (+25% QoQ each) and (2) should better reflect high yellow phosphorus (P4) prices in CSV’s earnings, in our view. These factors should be partly offset by lower chlorine prices and higher input material costs. 

- CSV’s TTM P/E is at 7.7x vs five-year averages of 5.9x (CSV) and 10.2x (regional peer median). We expect YoY earnings growth in the short term, which implies a lower forward P/E for CSV.

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