Stocks to watch on January 8: OIL, FMC, DRC

Securities companies analyze stocks and make buy/sell recommendations. Securities Stocks to watch on January 8: OIL (HN:), FMC, DRC Tue San • {Published Date} Securities firms analyze stocks and give buy/sell recommendations.

Recommended Oil Stocks to Buy

Fuxing Securities (PHS) analysis found that Vietnam Petroleum Corporation’s oil shares have accumulated and have the opportunity to recover. PHS recommends buying OIL stock with a target price of VND11,600/share, corresponding to an expected profit of 13.7% (the price on January 5 was VND10,200/share). When the price reached 9,600 VND/share, investors took the initiative to stop losses.

Petroleum leaders stated in a recent announcement that the output of this business has increased significantly this year, with the output of various types of oil reaching 5.2 million cubic meters per ton, completing 158% of the annual plan and a year-on-year increase of 28%.

PV OIL expects comprehensive revenue to exceed the 100 trillion VND mark for the second consecutive year, exceeding the annual plan by 120%. Pre-tax profit is expected to be VND750 billion, down 18% from last year, but completing 125% of the annual plan.

In the fourth quarter alone, PV OIL’s revenue is expected to reach VND33.12 trillion, a year-on-year increase of 33%. The company expects pre-tax losses to reach VND87 billion due to the sharp fall in oil prices, while it will achieve a profit of VND285 billion in the fourth quarter of 2022.

In 2023, the entire PV OIL system will develop 107 gas stations, completing twice the annual plan; bringing the total number of PV OIL stores to 762.

Securities companies provide advice to investorsRecommend buying FMC stock

PHS analysis found that Sao Ta Food Joint Stock Company’s FMC stock has been actively accumulating above the MA200. PHS recommends buying FMC shares with a target price of VND49,500/share, corresponding to an expected profit of 8.7% (the price on January 5 was VND45,550/share). When the price reached 44,000 VND/share, investors took the initiative to stop losses.

Recently, FMC announced a summary of its operations in 2023. Accordingly, the company said that in 2023, Saota accelerated in the last month of the year and reached the finish line with quite impressive results.

Specifically, full-year sales revenue in 2023 will reach US$200.6 million, a decrease of 11.3% from the 2022 performance level, and 100% completion of the US$200 million sales plan. Among them, processed shrimp reached 21,198 tons, a year-on-year increase of 3%; processed agricultural products reached 1,569 tons, a year-on-year decrease of 20.8%; finished shrimp consumption reached 17,407 tons, a year-on-year decrease of 3.7%; consumption of finished agricultural products reached 1,366 tons, a year-on-year decrease of 24.2%.

Neutral recommendation for Democratic Republic of Congo stocks

SSI (HM:) Research conducted an analysis and found that the target price-to-earnings ratio of Da Nang Rubber Joint Stock Company (HM:) DRC stock in 2024 remains unchanged at 12 times. In addition, SSI raised the target price of DRC stock for 1 year to VND28,400 per share (original price of VND25,300).

In the first nine months of 2023, Da Nang Rubber’s cumulative domestic revenue was VND1.16 trillion, a 34% decrease compared with the same period in 2022, mainly due to a 38% decrease in bias tire consumption. At the same time, export revenue reached VND 2,314 billion, an increase of 4% over the same period in 2022, mainly due to the key product radial tires maintaining high growth momentum.

The company plans to have net income and pre-tax profit of VND 1.19 trillion (a year-on-year decrease of 12%) and VND 68 billion (a year-on-year decrease of 35%) respectively in the fourth quarter. SSI Research believes that this plan is achievable because the fourth quarter is usually the peak season and orders from the US market have increased recently.

In addition, due to the gradual decline in FDI and high inventory clearance of Chinese companies (gross margin improvement and inventory days reduction), DRC’s bias tire selling price will increase by 3.1% compared with the third quarter, so DRC does not continue to further reduce prices to compete with these companies . At the same time, the Democratic Republic of the Congo intends to maintain quarterly prices for radial tires to increase competitiveness in the export market in the current economic context.

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