Some stocks to watch on August 13th.

Despite the positive recovery outlook for 2024, HDB shares have increased by 35% since the beginning of the year, so DSC recommends that investors monitor the stock and consider investing if the stock corrects to the 23,000-24,000 VND/share range.

Buy recommendation for DPG stock.

BIDV Securities Company (BSC) recommends a buy rating for DPG shares of Dat Phuong Group Joint Stock Company with a target price of VND 76,900 per share (equivalent to a 57.9% upside compared to the closing price on August 9th, excluding the 2.1% dividend yield) based on the sum-of-the-parts (SoTP) valuation method. BSC highly values ​​the business prospects of all three core segments in 2024-2026, especially the remaining large-scale real estate project with legal eligibility, which will be a growth driver contributing to a +30% CAGR in profit during the 2024-2026 period.

In 2024, BSC forecasts that DPG's business results will show a recovery from the low base of 2023. Accordingly, net revenue and after-tax profit - minority shareholders are expected to reach VND 4,285 billion (a 24% increase year-on-year) and VND 250 billion (a 50% growth), respectively, driven by the handover of construction contracts signed in 2022 and partly in 2023, a 7% recovery in commercial electricity output with the expectation of La Lina's return from the second half of 2024, and a VND 30 billion in financial cost savings (contributing 15% to profit growth) after restructuring the debt at Son Tra Hydropower in December 2023.

In 2025, BSC forecasts net revenue to reach VND 5,068 billion (an 18% increase year-on-year), driven by all three segments: Construction: the completion of contracts signed in 2023; Hydropower: continued benefit from La Nina, with a 10% increase in output; and especially Real Estate: the Casamia Balanca project is expected to be eligible for implementation in the second half of 2024 and may record a portion of its revenue in 2025. Therefore, BSC projects after-tax profit - minority shareholders - in 2025 to record outstanding growth, reaching VND 348 billion (a 39% increase).

BSC expects 2024 to mark a turning point for DPG and forecasts a 30% CAGR in profit growth for the 2024-2026 period thanks to the positive outlook of all three core business segments:

Infrastructure construction – bidding and construction capacity strengthened: The total backlog value carried over to 2024 reached VND 6,000 billion (an increase of 71% and 3.8 times compared to the 2018-2022 period). Gross profit margin is expected to remain at 6-7% because most of the newly signed projects require high technical quality, such as bridges and expressways, and construction material prices have decreased.

Hydropower – La Nina in the second half of 2024-2025: supporting the recovery of commercial electricity production with an 8% increase in 2024 and a 10% increase in 2025.

Real estate – benefiting from policy: BSC believes that the likelihood of completing the legal procedures for the Casamia Balanca project (31 hectares, Hoi An) has become clearer thanks to positive signals from the Land Law, which came into effect early on August 1st. The Provincial People's Committee has directed relevant departments, agencies, and units to focus on resolving outstanding issues for the project.

Stock market outlook August 13th: The market may continue its upward trend.