Recommendation to follow for HDB stock

According to DSC Securities Company, the business results of the second quarter of 2024 of Ho Chi Minh City Development Joint Stock Commercial Bank (stock code HDB) continued to recover strongly compared to the same period, reaching VND 8,293 billion in total operating income (up 29% over the same period, up 7% over the previous quarter) and VND 4,137 billion in pre-tax profit (up 51% over the same period, up 3% over the previous quarter).

With high credit growth, industry-leading NIM and better asset quality control than banks with the same risk appetite, DSC maintains HDB's 2024 target price at VND28,100/share.

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

Buy recommendation for DPG stock

BIDV Securities Company (BSC) recommends buying DPG shares of Dat Phuong Group Corporation with a target price of VND 76,900/share, (equivalent to an upside of 57.9% compared to the closing price on August 9, excluding the 2.1% dividend yield) based on the partial valuation method (SoTP). BSC highly appreciates the business prospects of all 3 core segments in 2024-2026, especially the remaining large-scale real estate projects with legal conditions will be a growth driver helping profits +30% CAGR in the period of 2024-2026.

In 2024, BSC forecasts that DPG's business results will record a recovery from the low base level in 2023. Accordingly, net revenue and profit after tax - minority shareholders will reach VND 4,285 billion (up 24% compared to the previous year) and VND 250 billion (up 50%) respectively, coming from the handover of construction contracts signed in 2022 and part of 2023, commercial electricity output will recover by 7% with the expectation that La Lina will return from the second half of 2024 and financial costs will be saved by VND 30 billion (contributing 15% to profit growth) after restructuring the debt at Son Tra Hydropower Plant in December 2023.

In 2025, BSC forecasts net revenue to reach VND5,068 billion (up 18% year-on-year), led by all three Construction and Installation segments: acceptance of signed contracts in 2023; Hydropower: continuing to benefit from La Nina, output increasing by 10% and especially Real Estate: expecting the Casamia Balanca project to be eligible for implementation in 2H24 and can be partially recorded in 2025. Therefore, BSC forecasts that after-tax profit - minority shareholders in 2025 will record outstanding growth, reaching VND348 billion (growth of 39%).

BSC expects 2024 to mark a turning point for DPG and forecasts a profit growth rate of 30% CAGR for the 2024-2026 period thanks to the positive outlook of all 3 core business segments:

Infrastructure construction and installation - bidding and construction capacity is strengthened: The total backlog value transferred to 2024 reaches VND 6,000 billion (up 71% and 3.8 times higher than the period 2018-2022). Gross profit margin is expected to remain at 6-7% because most of the newly signed project portfolio requires high technical quality such as bridges, highways and construction material prices have decreased.

Hydropower – La Nina in 2H2024-2025: supporting the recovery of commercial electricity output with an increase of 8% in 2024 and an increase of 10% in 2025.

Real estate – benefiting from policies: BSC believes that the possibility of completing the legal procedures of the Casamia Balanca project (31 hectares, Hoi An) has become clearer thanks to positive signals from the Land Law that took effect early from August 1. The Provincial People's Committee has directed relevant departments, branches, and units to focus on resolving the backlog for the project.

Stock market commentary August 13: The market may continue to rise