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The company’s net earnings through the first six months has only met 28% of its whole year target (VND60 billion in PBT). VCS think it will be a challenge to meet target even though management promises to increase selling price in 2H2012. VCS expect CLC to reach ~VND50 billion or 2012 EPS of VND3,846/share instead translating to a forward PE of 4x. With the drop in profit and new capex coming up, management is reluctant to pay an approved 20% dividend all in cash and is leaning towards paying some of it in stocks instead.
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