DPM – Margins to improve as gas input price softens – Update

• In FY18, DPM’s urea ASP rose 11.1% yoy which helped partially offset the 27.2% yoy increase in its gas input cost.
• We expect lower gas input cost and sustained selling prices to boost GPM in FY19F.
• In our view, smoother operation of the NH3-NPK project should support long-term earnings growth. Maintain Add. We raise our TP to VND23,400.

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