NKG [OUTPERFORM +13.8%] - Higher HRC input costs slash earnings - Update
  • 2018-05-25T17:58:18
  • Company Research
We maintain OUTPERFORM rating for NKG but lower our target price to VND22,100 as a tougher competitive landscape and elevated HRC input prices hit earnings. Although we lower our target price by 37%, the stock has fallen 36% since our last update. NKG’s Q1 results, with revenue growing 41% but margin collapsing to a record low, were in line with other players in the steel sector.