DHC [BUY +32.9%] - New capacity to lift earnings despite CoV headwind - Update
  • 2020-02-17T18:47:00
  • Company Research
We reiterate BUY as we remain optimistic on DHC’s ability to capture Vietnam’s rising packaging paper consumption, which is supported by the company’s recent capacity expansion. We maintain our target price as we expect the coronavirus (CoV) outbreak will temporarily hurt Vietnam’s retail and export sectors, and thus demand for packaging paper in 2020; however, this is offset by DHC’s cash conversion cycle being better than we expected.