Some stocks to watch on December 9

► Stock market commentary December 9: VN-Index may retest the 1,267 point level

Buy recommendation for VNM stock

According to KB Securities Vietnam (KBSV), in the third quarter of 2024, Vietnam Dairy Products Joint Stock Company (VNM)'s net revenue and after-tax profit reached VND15,549 billion (down 0.8% YoY) and after-tax profit reached VND2,403 billion (down 5.1% YoY), respectively, mainly due to lower domestic demand. In contrast, the export and foreign companies (accounting for more than 18% of revenue) continued to maintain good growth momentum (up 10.3% QoQ and up 9.5% YoY) thanks to competitive costs.

According to Global Dairy Trade, skimmed/whole milk powder prices have increased by 3%/12% respectively compared to early 2024 and will affect business results in 2025. According to Vinamilk , product prices will be adjusted up in 2025 if milk powder prices increase too high and affect profit margins.

Some stocks to watch on December 9 (Illustration: KT)

For the whole year of 2024, KBSV forecasts VNM's revenue and profit to reach VND 62,066 billion (up 2.8%) and VND 9,310 billion (up 4.9% over the same period), respectively completing 98/99% of the 2024 plan. KBSV forecasts 2025 revenue and profit to reach VND 64,385 billion (up 3.7%) and VND 9,271 billion (down 0.4%).

KBSV recommends buying VNM shares with a target price of VND75,000/share with an upside potential of 17%, equivalent to a projected PER for 2025 of 15x, lower than the 5-year average of 17x.

Buy recommendation for NLG stock

Vietcombank Securities Company (VCBS) forecasts that Nam Long Investment Corporation's (NLG) revenue in 2024 will reach VND5,755 billion (up 81%), profit attributable to parent company shareholders will reach VND641 billion (up 33%), corresponding to EPS of VND1,666/share. For 2025, VCBS forecasts revenue to reach VND6,035 billion, net profit to reach VND856 billion, corresponding to EPS of VND2,225/share.

VCBS assesses that NLG has a positive long-term outlook and is currently trading at a relatively attractive P/B. Therefore, VCBS recommends buying NLG shares at a reasonable valuation of VND45,904/share.

Profits in the fourth quarter of 2024 are expected to be positively supported by the handover of 100% of phase 2 of the Akari City project and 200 products at Central Lake, which is also the key driving force for NLG to complete its 2024 business plan. NLG is expected to record VND 4,700 billion in revenue from the above two projects in the fourth quarter of 2024.

After demand in the Southern real estate market showed positive signs since the end of the third quarter, VCBS believes that NLG will continue to open sales of the high-rise segment at the Akari City project phase 3, and the low-rise segment at the Waterpoint project in the period 2025 - 2026, thereby promoting growth in sales.

The C4 subdivision planning in Bien Hoa City was approved, creating conditions for the restart of the Izumi City project. The long-term profit margin has many bright spots thanks to the launch of the low-rise segment in projects in Dong Nai (Izumi City & Paragon Dai Phuoc) and VSIP Hai Phong.

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-912-post1140709.vov