We revised our 2024 revenue and after-tax profit forecasts for DGC from VND10,785 bn and VND3,650 bn to VND10,150 bn and VND3,125 bn, respectively, due to the unexpected increase in purchased ore prices and transportation costs. Consequently, we reduced our target price for DGC shares from VND134,500/share (as of its September 2024 report) to VND129,300/share. We continue to favor DGC as a long-term investment, since (1) This is a top-tier chemical company with a strong financial position; (2) The P4 segment is poised for a strong recovery, driven by the growing demand from the semiconductor sector; and (3) New projects like Đức Giang – Nghi Sơn, the alumina production project, will be operational in 3-5 years. DGC stock is currently trading at a P/E multiple of 10.5x, which is below its 5-year average P/E of 12x. We maintain our OUTPERFORM rating on DGC stock, expecting a 16.5% increase in the next 12 months.

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