HPG [O-PF +14.8%] - Fear on Chinese steel overshadow HPG's results - Update
We increased TP by 4% as HPG’s 9M15A NPAT completed 93% of our old forecast. However, we maintain our projection for 2016’s earnings as the Vietnamese Government still has not yet initiated anti-dumping duties on Chinese construction steel in the mould imposed by South Korea in May 2015. Other retaliatory initiatives are discussed below. HPG is trading at a PER of 6.5x on our FY16E EPS forecast, a 31.2% discount compared to its regional peers.