NKG [MARKET PERFORM +0.7%] - HRC price rally, falling interest expense to boost earnings - Update
  • 2021-03-05T20:28:13
  • Company Research
We raise our target price (TP) to VND20,400/share from previously VND10,000/share and upgrade our rating from UNDERPERFORM to MARKET PERFORM. NKG delivered a better-than-expected core business turnaround in 2020 that was amplified by the H2 2020 surge in hot rolled coil (HRC) prices. NKG’s share price has rallied by 66% over the last three months. Our TP increase is driven by (1) an increase in our FY2021-25F NPAT-MI of 121% on average due to a higher EBIT forecast