It is recommended to buy A steel industry stock, which is expected to rise 11%

Experts expect the stock to rise 8-11% in the short term. Recently, in the January 2024 strategy report of SSI Securities Co., Ltd. (HM:), experts commented that after bottoming out in the last two months of 2023, the index continued its trend and sent out more positive signals. Mainly in December 2023, we will focus on the 1076-1130 area to lay a foundation for growth in early 2024.

Technical indicators such as RSI and ADX reversed and initially returned to positive signals in the mid-term, supporting the market’s upward momentum. Continuing the growth momentum created previously, VNIndex will gradually show a positive trend in January 2024, with a fluctuation range of 1,125-1,180.

In December 2023, cash flow showed signs of shifting to large capital groups, and the proportion continued to increase, led by the real estate industry. One of the top tickers with the most liquidity is the HPG ticker of Hoa Phat Group Joint Stock Company (HM:), with a trading volume of VND 3.2 trillion.

Heading into 2024, the HPG ticker is technically analyzed by experts at SSI Securities and recommended as a Buy.

Specifically, HPG’s price range has been slightly adjusted to VND 27,700 per share. Experts suggest that investors may consider opening a position to buy HPG stocks in the price range of the closing price threshold of 27,600-28,000 VND. The rough target profit is VND30,000, an increase of 8.3% from the closing price on the morning of January 9. Experts also set a target price of VND 30,700 per share based on technical trends, equivalent to an 11% increase from the current price.

It’s no coincidence that HPG stock is recommended by experts. Based on the overall market situation, experts have put forward some investment arguments:

First, consumption of long products and hot-rolled coils (HM:) in December increased significantly by 36% year-on-year and 7% month-on-month to 760,000 tons, the highest level since April 2022, benefiting from the recovery of domestic channels. Export channels remain solid.

Secondly, rising steel prices during the month will also help support market sentiment and buyers’ needs to increase inventory reserves. Steel prices in the domestic market and major markets such as China, the United States, and the European Union tend to recover due to the recent decline in China’s production, increased demand at the end of the year, and rising raw material prices. The main raw materials are iron ore or coke.

Third, SSI experts predict that profits in the fourth quarter of 2023 may reach more than 2.3 trillion yuan compared with last year.The loss in the fourth quarter of 2022 is 2 trillion. It is expected that by 2024, due to increased production and stable steel prices, the company’s profits can increase by more than 80%, reaching more than 11 trillion VND.