HPG – Only minor headwinds from US-China trade war
Company Note 03/08/2018 279
- Tariffs shield Vietnam’s long steel industry from the fall out of an US-China trade war.
- The US-China trade war, to some extent, could benefit HPG in the medium term.
- HPG will remain competitive vs. imported Chinese steel even after Vietnam’s import tariffs expire in 2020F, according to our calculations.
- HPG’s significant upcoming capacity expansion can be absorbed gradually by the incremental growth in demand, in our view.
- Maintain Add as HPG’s stock price is a victim of souring sentiment on steel stocks but is better protected from trade-related shocks than most global peers.
Market Price |
Target Price |
Dividend Yield |
Rating |
Sector |
VN36,300 |
VND47,800 |
0.00% |
Add |
BASIC MATERIALS |
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