■ Vietnam has imposed anti-dumping tax on galvanised flat steel. A similar tax on prepainted galvanised flat steel may also be introduced soon.
■ 1Q17’s results were supported by the rally in hot roll coil (HRC) prices.
■ We expect HSG’s 3Q17’s and 4Q17’s earnings to be stellar, helped by the new tariffs on imports.
■ We raise our FY17-19F EPS by 5-9% for the positive impact of the tariffs and increase our TP. We maintain our Add recommendation.