DPM – The worst seems to be over – Update

• DPM’s revenue decreased 28.5% yoy and net profit fell 86.8% yoy in 2Q19.
• 1H19 revenue and net profit plunged 26.7% yoy and 79.7% yoy, respectively, to come in at 39.0% and 17.0% of our FY19F forecasts.
• We expect DPM’s urea and NH3 plants to operate at 100% capacity in 2H19 and GPM to recover from 15.1% in 1H19 to 18.3% in 2H19.
• Maintain Add. We cut our TP to VND17,300 due to the weaker-than-expected 1H19 results, long maintenance period and higher expenses.

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