HPG [O-PF +11.2%] - Yuan devaluation weighs on steel margin - Update
  • 2015-09-10T13:18:57
  • Company Research
We lower TP by 4% as Yuan devaluation weighs on steel margins and construction steel price fell by 7% over July & August. We also deduct from the TP, VND 770 per share amounting to a provision for the agri business. Yuan devaluation totalling 2.9% during 8M15 is expected to amplify competition in Viet Nam steel sector and slightly outweighs the support from vigorous infrastructure & real estate sector, therefore, we lower our earnings forecast for 2016 by 3%.