HPG – 1H18 earnings in line with expectations – Update

•  HPG’s 2Q18 net profit rose 42.8% yoy to VND2,195.6bn, driven by higher sales volume and increasing steel prices.
• Cumulative 1H18 net profit increased 26.9% yoy to VND4,406.8bn.
• 1H18 gross margin was 21.4%, in line with our full-year estimate of 21.8%.
• The first production line of the Dung Quat Steel Complex project is expected to come onstream in Aug 2018 with a capacity of 600,000 tonnes per year (tpy).
• HPG’s strong earnings growth in 1H18 reaffirms our Add rating.

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