Some stocks to watch on October 21

► Stock market commentary October 21-25: VN-Index is still in an upward accumulation channel

Hold recommendation for CTR stock

According to Agribank Securities Company (Agriseco), Viettel Construction Corporation (CTR) recently announced its business results for the third quarter and the first 9 months of 2024 with many notable contents. In particular, CTR maintained its leading position in BTS stations nationwide with 8,812 stations, an increase of 2,376 new stations in 9 months. The Construction segment's revenue reached VND 2,919 billion, an increase of 22% contributed by the value of B2B, B2C contracts signed in 2023 and a part of new contracts signed in the first 9 months of 2024.

On October 15, Viettel officially launched the commercialization of the 5G network in 63 provinces and cities. Since the end of March, Viettel Group has won the auction for the right to use the 2,500 - 2,600MHz frequency band to deploy the 5G network with two network operators VNPT and Mobifone . The demand for building 5G stations is expected to increase sharply in the coming time. According to the plan, the network operators that win the bid will commit to building at least 3,000 5G BTS stations/year. CTR is implementing a plan to install 5G station equipment nationwide for the parent group Viettel. Accordingly, the Infrastructure for Lease, Operation and Construction segments are expected to be the driving force for business growth for CTR in the medium and long term.

Some stocks to watch on October 21 (Illustration: KT)

CTR has continuously recorded an increase in the value of new contracts signed in the first 9 months of the year. We assess that the Construction segment will achieve high growth thanks to telecommunications construction and installation thanks to Viettel 's increased demand for station construction and installation; civil construction and installation will continue to increase in the context of the real estate market recovery.

CTR's business results in the third quarter and the first 9 months of 2024 maintained a stable growth rate. With long-term momentum when the 5G network is commercialized, and annual compound profit growth of more than 30% over the past 5 years, CTR is a suitable stock for medium and long-term investment. Currently, the stock price has increased by 50% since the beginning of the year, exceeding the target price and partly reflecting long-term expectations, so Agriseco recommends holding CTR shares with a 1-year target price of VND 135,000/share (Upside 1% compared to the current price).

Buy recommendation for DGC stock

An Binh Securities Joint Stock Company (ABS) recommends buying shares of Duc Giang Chemical Group Joint Stock Company (DGC), target price of VND 133,900/share according to investment thesis.

Some stocks to watch on October 21 (Illustration: KT)

The outlook for the Yellow Phosphorus (P4) segment is optimistic due to both P4 consumption output and selling price recovering from Q3/2024 when global P4 demand will increase to meet the increasing demand of the fertilizer market and serve the semiconductor industry, chip manufacturing as well as the electric vehicle industry which is showing signs of recovery.

Global semiconductor manufacturing has bottomed out since the beginning of this year and is gradually picking up again. Mordorintelligence predicts that the industry will grow strongly in the near future with a compound annual growth rate (CAGR) of 10.86%/year in the period 2024-2029.

In addition, DGC's profit margin is expected to improve in the coming time because DGC plans to upgrade and expand by 11 hectares at Quarry 25 (Lao Cai), expected to go into production in 2025, contributing to increasing the initiative in the main raw material source, Apatite ore, from 80% (currently) to 90%, even 100% in 2025.

New growth momentum comes from the Nghi Son Chlor – Alkali – Vinyl Project: The project has a total investment capital of VND 2,400 billion in phase 1, will start construction in the fourth quarter of 2024, with a designed capacity of 50,000 tons of NAOH/year. When put into operation, this project is expected to bring in VND 2,500 billion in revenue/year if operating at 100% capacity.

In addition, DGC is also pursuing to soon obtain a License for the Dak Nong Alumina Project, with a capacity of 2 million tons of Alumina and 300,000 tons of aluminum ingots. This project promises long-term prospects if implemented, but the project is currently stuck in many procedures.

ABS forecasts that DGC's net revenue and after-tax profit in 2024 are expected to reach VND10,463 billion (up 7.3% YoY) and VND3,450 billion (up 11.3% YoY).

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-2110-post1129542.vov