Research Centre
Free access to research reports covering macro economy, market, sectors or individual stocks |
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| Title |
DPM - PetroVietnam Fertilizer and Chemicals |
| Source |
| MKS |
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| Type |
Summary Report |
| Business |
Petrovietnam Fertilizer and Chemical Joint Stock Company |
| Ticker |
DPM |
| File Detail |
| Date: 11/03/2011 |
Page: 8 |
File Type |
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| Description |
DPM is not expensive but it is difficult to see there being a catalyst to ignite the stock – therefore in a binary buy or sell world, we say sell. At our estimated FY11 sales of VND6,508bn (-2% YoY) and net profit of VND1,558bn (-8.7% YoY), it is on 8.6x earnings, 47% lower than the 16.3x of regional peers; 2011 PBR is 2.0x, 13% lower than the regional average of 2.3x; and 2011 PSR is 2.1x, 75% above the regional average of 1.2x. As DPM is now running at maximum capacity, near term sales growth is constrained; but reported gross profit margins will hold up on account of a now-fully-depreciated fixed asset base, even despite rising raw material costs (i.e. gas). |
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| Recommend |
Sell |
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