Notable stocks on September 20

KB Vietnam Securities Joint Stock Company (KBSV) recommends holding KDH shares of Khang Dien House Investment and Trading Joint Stock Company with a target price of VND 37,100/ share .

In 2023, KBSV forecasts KDH's sales to reach VND2,400 billion, up 21% over the same period in 2022. The company's small-scale projects Clarita, Emeria and The Solina are expected to achieve high absorption rates and good selling prices when they open for sale in 2024-2025.

KB forecasts KDH's revenue and after-tax profit in 2023 to reach VND2,556 billion and VND780 billion, down 12% and 29% year-on-year.

In the long term, KBSV believes that large-scale projects such as Tan Tao residential area (330 hectares), Le Minh Xuan industrial park (110 hectares) and Phong Phu 2 residential area (130 hectares) will help Khang Dien affirm its position as well as ensure profit growth.

Based on that, KBSV recommends holding KDH shares with a target price of VND37,100/share. Closing session on September 19, KDH shares were at VND34,000.

Notable stocks on September 20

In another field, KB Securities recommends buying HPG shares of Hoa Phat Group Joint Stock Company with a target price of VND 32,000/share.

In the second quarter of 2023, HPG's parent company's revenue and profit after tax reached VND29,496 billion and VND1,460 billion, respectively 21% and 64% lower than the same period last year.

Domestically, construction steel consumption remains weak and is also facing competition from cheap steel products imported from China in the early third quarter of 2023. However, HPG's consumption output in August 2023 has also improved thanks to the promotion of export channels.

In the third quarter of 2023, HPG's HRC export orders increased due to the temporary shutdown of blast furnaces in Europe for maintenance from July 2023.

KBSV expects steel prices to improve in the fourth quarter of 2023 and the first quarter of 2024 thanks to the recovery of the real estate industry in China and policies to restrict steel production in the country.

Accordingly, KB recommends buying HPG with a target price of VND32,000/share. This stock is currently priced at VND28,150.

VCBS Securities Company recommends neutral on LPB shares of Lien Viet Post Joint Stock Commercial Bank with a target price of VND 15,451 .

VCBS said LPB's pre-tax profit and net interest income in the first half of 2023 decreased by 31.8% and 11.8% year-on-year, reaching VND2,446 billion and VND5,224 billion, respectively. In addition, the bank's operating expenses and bad debt ratio were higher than the same period last year, up 13.2% and 2.43%.

With the decline in the first 6 months of 2023, VCBS believes that LPB's profit will recover in the second half of the year based on the expectation that LPB can record a part of the prepaid fee in 2023 and revenue from Dai-ichi Life insurance commission is forecast to grow at over 15%/year in the coming years.

Along with that, the bank's retail lending portfolio is forecast to grow rapidly; the plan to increase the maximum foreign ownership ratio at LPB to 15.5% (from 5%) will help create momentum for the stock price to increase.

VCBS forecasts LPB's pre-tax profit in 2023 to reach VND6,392 billion and assesses that LPB's stock price has increased positively and exceeded the company's valuation.

On that basis, VCBS recommends neutral on LPB shares and sets a target price of VND15,451. LPB is currently priced at VND15,250/share.

(Analysis and recommendations of securities companies are for reference only).

Source: https://nld.com.vn/kinh-te/nhung-co-phieu-dang-chu-y-ngay-20-9-20230919204845746.htm