ABSTRACT
Part I: Construction industry
While most civil construction projects and industrial parks saw a serious decline, the majority of infrastructure construction businesses showed more stable operating results or slight decline. The main driving force for the industry comes from the disbursement of public investment, which is the Government’s top priority, along with housing supply gradually improve to stimulate construction demand next year.
We recommend BUY with HHV, valuing P/E at 16.9 times, forward P/B at 0.8 times. Target price for 6-18 months is 18,000 VND/share, purchase price 15,000-15,500 VND, expected profit rate is 20%.

Part II: Construction materials industry (Steel and other construction materials)
2024 is considered an important year to complete the medium-term public investment plan for the period 2021 – 2025 and also start building the medium-term public investment plan for the period 2026 – 2030 (it is expected that there will be 6 more airports by 2030 and by 2050 there will be a total of 31 airports). Investment barriers of previous years have been removed, the contract signing process has been accelerated, new soil and stone mine exploitation has been licensed,… Construction material prices are expected to increase in the coming years. 2024 due to large demand from key infrastructure projects. Steel, asphalt and construction stone manufacturing companies will directly benefit from this trend.
We recommend BUY with HPG, 6-18 month target price of 34,500 VND/share, purchase price of 29,500-30,000 VND, expected profit rate of 15%.