Some stocks to watch on October 18

► Stock market commentary October 18: The market may continue to rise

Recommendation to increase weight for HPG shares

According to Agribank Securities Company (Agriseco), Hoa Phat Group Joint Stock Company is the leading enterprise in the construction steel industry with a market share of 38% nationwide. Recently, the enterprise announced its business results for the third quarter and the first 9 months of 2024 with positive business results.

HPG's consumption output is expected to continue to improve thanks to demand from: The construction market is bustling again after the rainy season and the Land Law, Housing Law, and Real Estate Business Law permeating the economy, helping the market boost supply in the coming time and the acceleration of public investment projects in the last months of the year according to the Prime Minister's directive.

Some stocks to watch on October 18 (Illustration: KT)

Gross profit margin to improve in the coming quarter: With iron ore prices rising by about 15% after China launched a series of policies to ease difficulties in the real estate market, HPG has also adjusted its output steel prices upward since early October according to the price movements of raw materials. Therefore, profit margins may improve in the fourth quarter of 2024 thanks to cheap inventories from the previous quarter.

Agriseco Research expects that Hoa Phat 's business results will continue to recover thanks to increased demand from the domestic real estate market and increased public investment. Currently, HPG is trading at a P/B of 1.59x, lower than the average P/B of the last 3 years of 1.9x. With positive business results in Q3/2024 and long-term prospects from the Dung Quat 2 project expected to be operational in Q1/2025, Agriseco recommends increasing the proportion of HPG shares with a target price of VND 32,000/share (upside 18%).

Buy recommendation for DXG stock

BIDV Securities Company (BSC) recommends buying shares of Dat Xanh Group Corporation (DXG), target price of VND 21,800/share based on investment thesis: Opportunity for revaluation and positive business prospects when the main project DXH Riverside has completed legal procedures, expected to open for sale in 2025.

Some stocks to watch on October 18 (Illustration: KT)

New presales revenue is expected to recover from 2025 to VND 9,543 billion after 2 years of not recording any new product launches, mainly thanks to the launch of DXH Riverside and the re-launch of Gem Sky World.

Attractive valuation as the business begins to enter the recovery phase, DXG is currently trading at P/B 2025 = 0.99x due to: lower than the current industry average P/B of 1.3x, lower than the industry average P/B of 1.15x in the previous recovery phase in 2014-2015 despite the current healthier real estate industry context;

BSC forecasts that DXG's net revenue and after-tax profit in 2024 will reach VND 4,722 billion (+27% YoY) and VND 265 billion (+54% YoY), respectively, mainly from the handover of all remaining products at Opal Skyline and a part of Gem Sky World that has been sold.

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-1810-post1129165.vov