We project DGC’s 2024 net revenue and NPAT-MI at VND10,785 bn (+10.6%YoY) and VND3,650 bn (+17%YoY), respectively, expecting a stronger recovery of P4 revenue in 2H24 with production estimated to rise by over 60%YoY. For 2025, we revise our gross profit margin estimate for DGC downward by 1 percentage point from our strategic report, given the assumption that the export price of P4 will not rebound significantly due to a surplus of food-grade Phosphoric acid in China. DGC’s net revenue and PAT (excluding Dai Viet alcohol factory’s performance) growth in 2025 is estimated at 18%YoY and 22%YoY, driven by continued strong growth in the P4 segment and a doubling of ore production at Mine 25, increasing DGC’s self-sufficiency in raw materials to 100% from 2025. At the current price, the estimated P/E ratio for DGC in 2024-2025 is around 10.3x, lower than the 5-year average P/E of 12x. We reiterate our OUTPERFROM rating for DGC in the next 12 months with a target price of VND134,500/share – an upside of 17.4%.

……………………………………………………………….............

Please find the attached file below.