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(EN) GTJASVN RS_DGC Equity Report _Strengthen the value chain_TP120,000_Oct 16 2025

17/10/2025

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Strengthen the value chain

KEY HIGHLIGHTS

DGC is a leading chemical enterprise in Vietnam, holding a dominant position in the supply of yellow phosphorus — a key raw material for modern industries. In addition, the company has demonstrated its ambition to move further up the industrial chemical value chain through large-scale projects in Nghi Son and Lam Dong.

In the short term (2025–2026), the ethanol project in Dak Nong, scheduled to commence operations in Q1/2025, and the Nghi Son – Phase 1 project, expected to be operational in Q2/2026, will add new capacity and enhance DGC’s revenue and profit growth.

In the first half of 2025, DGC recorded net revenue of over VND 5,700 billion, up nearly 16.6% year-on-year. Net profit after tax increased by 9% to VND 1,728 billion. With this result, DGC has achieved approximately 54.9% of its full-year revenue target and 52.6% of its after-tax profit plan.

DGC currently maintains a healthy balance sheet with more than VND 12 trillion in cash and bank deposits, reflecting the company’s strong financial capacity in preparation for upcoming large-scale projects.

RECOMMENDATION

Using the Free Cash Flow to Firm (FCFF) discounted cash flow valuation method, we determine a target price for DGC at VND 120,000 per share. We recommend a “BUY” rating for DGC with a target price of VND 120,000 per share, implying an expected return of 27% compared to the closing price on October 15, 2025

(EN) GTJASVN RS_DGC Equity Report _Strengthen the value chain_TP120,000_Oct 16 2025

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