Recommendation to buy CSV stock with target price of VND 35,600/share

Securities Investment Newspaper quotes the analysis report of some stocks that need to be concerned before the May 7, 2019 session of securities companies, in which: ” Recommended to buy CSV shares with a target price of 35,600 VND / share ”

The barrier to entry into the industry is high, that is, chemical production must comply with the Government’s planning and ensure environmental issues. In addition, the cost for the container of inorganic chemicals and transportation costs is quite large.

Besides, the outlook for the basic chemical industry is positive. Specifically, Vietnam’s industrial chemical demand grows at an average of 9-10% per year, domestic supply only meets 50% of demand and the rest must be imported.

In addition, Southern Basic Chemicals Joint Stock Company (code CSV) has always maintained a stable and steadily increasing cash dividend over the years. We estimate the dividend yield that investors can get from the recommended buy price (6.9 %-12,4% ).

Therefore, at the price of VND29,400/share on April 25, 2019, shares of Southern Basic Chemicals Joint Stock Company (code CSV) are trading at P/E trailing 5.6x lower than With an average P/E of 6.8x, we recommend buying CSV stock with a target price of VND35,600/share (equivalent to industry average P/E).

Source: https://tinnhanhchungkhoan.vn/nhan-dinh/co-phieu-can-quan-tam-ngay-75-265112.html

Development planning for production of basic chemical products in Vietnam to 2025, vision to 2035