Title | DRC Update Report - NEUTRAL - Benefit from Thai tires being subject to antidumping tax in the US |
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Category: | Company Report |
Source: | Bao Viet Securities |
Industry: | Consumer Goods |
Business: | Da Nang Rubber Joint Stock Company |
Detail: |
20/05/2024
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Summary: |
We revised the target price upwards to VND 35,350/share (upside 5.8%), from VND 26,550/share stated in the July 2023 update report, due to (1) updating the performance forecast for DRC for 2024-2026 more favorably when adding the benefit factor when TBR tires from Thailand are taxed in the US market; (2) adjusting the risk premium down to 9.0% from 9.6%; and (3) shifting the valuation timing to 2024. However, we downgrade the recommendation to NEUTRAL due to the stock's recent strong performance (+47% over the past six months), which already factors in the company's positive growth prospects and speculation regarding a record dividend payout/capital divestment related to Vinachem. DRC's forward P/E ratio for 2024 stands at 13.0x, surpassing the 3-year and 5-year averages of 10.7x and 10.3x, respectively. ………………………………………………………………............. Please find the attached file below. |