Title 20161014_BSC_Vietnam Company Update_EN_DAG_ICB1353
Report Type Báo cáo chuyên đề
Source BSC
Industry Industrials
Bussiness DAG
Detail Date : 14/10/2016
Total pages : 2
Language : English
File Type : .PDF
FileSize : 757 Kb
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Short Content

On Oct 13th 2016, a DAG stock was trade at the price of VND 15,700 per share, equivalent to P/E FW = 11.8x.

Business results update: The estimated 3rdQ revenue is about VND 365 billion (+3.3% YoY), and the PAT goes up to around 14.5 billion (+19.8% YoY). The accumulated 9-month revenue is expected to be around VND 1,046 billion (+7.6% YoY), while the accumulated PAT increases rapidly to around VND 44.1 billion (+56% YoY). The GPM rose from 8.1% (in 2015) to 8.9% as the proportion of revenue from self – produced products (GPM = 9.5%) increased significantly from 70% to 83%. Meanwhile, the proportion of revenue from commercial segment (GPM = 2.5%) decreased from 34.2% down to 14%. We estimate that the 2016 PAT of DAG could reach VND 65 bn, EPS 2016 = VND 1,325 (we took into account 9.15 million shares which are scheduled to be issued in the 4Q2016).

The strong expansion of Profile plastic tube production, which is the flagship product of DAG (occupying about 40% of total revenue). In the 4th quarter, 7/20 new Profile production lines of Stage I - Ha Nam project will go into operation, and this helps the output increase by 1,500 tons in the 4th quarter. The capacity of each production line of DAG is 1.5x higher than an existing machinery and the scrap rate will decrease from 5% to 2.5% due to the closure and high automation of new process. The remaining 13 new production lines of Stage I are in the installation process and trial run.