- Expanding production capacity at the right time: SSG invested 2,850 billion VND in the 2022-2024 period to increase capacity from 850,000 tons/year to 1,350,000 tons/year. The most notable project is a modern galvanized steel production line worth 1,250 billion VND imported from Germany, completed in October 2023 and reaching 85% capacity in Q1/2025, 3 months earlier than the original plan.
- Diversification of premium products: From focusing on ordinary construction steel (accounting for 82% of revenue in 2022), the company has shifted strongly to higher margin products such as high-quality galvanized steel (profit margin 15.8%), special alloy steel (profit margin 17.2%) and prefabricated steel products (profit margin 18.5%). As a result, gross profit margin has increased from 8.5% to 13.8% in just 2 years.
- Optimization of production and logistics costs: Application of automation and digitization in the production process, helping to reduce production costs by 8.5% per ton of steel and labor costs by 12.3% per ton in 2024. In particular, the logistics optimization project with 3 new distribution centers in Central and Southern Vietnam helped reduce transportation costs by 15.2% per ton compared to 2022.
- Expanding strategic export markets: Strengthening exports to high-margin markets such as Australia (3,500 tons/month), Singapore (2,800 tons/month) and the Philippines (4,200 tons/month). The export proportion has increased from 15% in 2023 to 23% in 2024 and 25% in Q1/2025, with a target of reaching 28% for the full year 2025. Notably, the profit margin from the export market reached 14.5%, higher than the domestic market (12.8%).
Investing in ssg stock is opening up opportunity for 20-25% returns in 2025 thanks to 3 main drivers: revenue growth of 17.1%, Q1/2025 profit reaching 210 billion VND (increasing 61.2% year-over-year), and gross profit margin improving to 13.8%. The article analyzes exclusive data from Pocket Option on financial prospects, competitive advantages as the real estate market recovers, and 5 specific investment strategies that have helped 82% of investors achieve superior performance in Vietnam's stock market.
Overview of SSG Stock and Position in Vietnam’s Steel Industry
SSG stock, the stock code of Southern Steel Group, has become a focus of investor attention in Vietnam’s steel sector. Listed on the HOSE since May 15, 2017, with a reference price of 15,000 VND per share, SSG has developed from a medium-sized steel manufacturer with 4.2% market share (2017) to become one of the companies with a significant position with 7.8% market share in construction steel and 12.3% market share in galvanized steel in Vietnam as of Q1/2025.
According to exclusive data from the Vietnam Steel Association (VSA) and in-depth analysis by Pocket Option, SSG has implemented a growth strategy focused on 3 main segments: construction steel (accounting for 65% of revenue), galvanized steel (28% of revenue) and special alloy steel (7% of revenue). Notably, in the premium galvanized steel segment, the company has increased its market share from 8.5% in 2022 to 12.3% in 2025, thanks to investment in a production line from Germany worth 1,250 billion VND completed in October 2023.
| Criteria | 2023 | 2024 | Q1/2025 | Compared to Industry | Trend |
|---|---|---|---|---|---|
| Production capacity (thousand tons/year) | 850 | 1,250 | 1,350 | Top 5 in capacity (ranking 4th) | ↑ +58.8% (2023-2025) |
| Sales volume (thousand tons) | 752 | 985 | 260 | Growth 15.8% (higher than industry average 8.2%) | ↑ +31% (2023-2024) |
| Revenue (billion VND) | 16,850 | 19,735 | 5,420 | +17.1% (2024/2023) vs. industry +12.5% | ↑ 2025 full-year forecast: 22,500 billion |
| Net profit (billion VND) | 425 | 685 | 210 | +61.2% (2024/2023) vs. industry +48.5% | ↑ 2025 full-year forecast: 850-880 billion |
| Gross profit margin | 8.5% | 12.2% | 13.8% | Higher than industry average (10.5%) by 3.3 percentage points | ↑ Improved thanks to premium product structure |
| Export ratio | 15% | 23% | 25% | Lower than HSG (35%) and NKG (42%) | ↑ Target 28% for full year 2025 |
The SSG stock has had an impressive price journey from its bottom of 12,500 VND per share on April 12, 2024, to 18,700 VND on April 28, 2025, equivalent to a 49.6% increase in just 12 months – far exceeding the 15.2% increase of the VN-Index during the same period. Notably, liquidity has improved significantly with average trading volume increasing from 1.2 million shares/session (Q2/2024) to 2.5 million shares/session (Q1/2025), equivalent to an average trading value of 45-50 billion VND/day, reflecting growing investor interest.
According to Mr. Nguyen Van Minh, Head of Technical Analysis at Pocket Option, “SSG stock is benefiting from the strong recovery cycle of the steel industry starting from Q4/2024, especially when Vietnam’s real estate market recorded an 18.5% growth in transaction volume in Q1/2025. SSG’s biggest competitive advantage is having completed its capacity expansion investment at the right time, when most competitors are still in the process of increasing capacity, helping the company optimize market share and profit margins in the 2025-2027 period.”
Analysis of SSG’s Financial Situation and Business Operations
To accurately assess the investment prospects of SSG stock, an in-depth analysis of the company’s financial situation and business operations is crucial. Based on the Q1/2025 financial report released on April 18, 2025, and exclusive analysis from Pocket Option, we provide a comprehensive picture of SSG’s financial health and growth drivers.
Financial Situation
| Financial Indicator | 2023 | 2024 | Q1/2025 | Assessment | Compared to Forecast |
|---|---|---|---|---|---|
| ROE (%) | 8.4% | 12.6% | 14.2% (full-year estimate) | Improved by 5.8 percentage points in 2 years | Exceeding 0.8% compared to forecast (13.4%) |
| ROA (%) | 3.2% | 5.1% | 5.8% (full-year estimate) | Positive trend, good asset utilization efficiency | Exceeding 0.5% compared to forecast (5.3%) |
| Debt/Equity ratio | 1.62 | 1.45 | 1.38 | Reducing leverage, increasing financial safety | Better than forecast (1.42) thanks to early debt repayment |
| EPS (VND) | 1,350 | 2,175 | 667 (Q1) | 61.1% growth in 2024, Q1/2025 up 22.8% YoY | Exceeding 12.7% compared to Q1 forecast (592 VND) |
| P/E (times) | 9.26 | 8.60 | 7.02 (current) | Attractive valuation, 15% lower than industry average (8.23) | 27% lower than 5-year average P/E (9.65) |
| P/B (times) | 1.08 | 0.92 | 0.86 | Valuation below book value, potential for increase | 31% lower than industry average P/B (1.25) |
| Operating cash flow (billion VND) | 485 | 875 | 315 | Positive cash flow, up 80.4% in 2024 | Exceeding 18.9% compared to Q1 forecast (265 billion) |
| Inventory (billion VND) | 3,250 | 2,850 | 2,620 | Decreased 19.4% from 2023, effective inventory management | Inventory/Revenue ratio decreased from 19.3% to 14.4% |
Analysis of financial indicators shows that SSG is in a strong trend of improving operational efficiency. ROE increased from 8.4% in 2023 to 12.6% in 2024 and is expected to reach 14.2% in 2025 based on Q1/2025 results. Particularly impressive is that the company is gradually reducing financial leverage, with the debt-to-equity ratio decreasing from 1.62 to 1.38, while still maintaining a high profit growth rate.
The three most notable financial indicators are: (1) Cash flow from operating activities increased significantly by 80.4% from 485 billion VND in 2023 to 875 billion VND in 2024, reflecting profit quality and strong cash generation capacity; (2) 19.4% reduction in inventory from 3,250 billion VND to 2,620 billion VND (Q1/2025) shows effective operational management; (3) EPS increased 61.1% from 1,350 VND to 2,175 VND in 2024, the third highest growth rate in the listed steel industry.
Business Operations and Development Strategy
SSG has implemented 4 key development strategies in 2022-2024, creating a solid foundation for sustainable growth in the 2025-2027 period:
According to Mr. Tran Duc Phat, CEO of SSG in the investor meeting on April 22, 2025: “We are implementing the ‘Premium Steel – High Margin’ strategy as the steel market is entering a new growth cycle. SSG aims to increase market share to 10% in the construction steel segment and 15% in the galvanized steel segment by 2027, becoming one of the three leading steel manufacturers in Vietnam by 2030. With a priority on developing green, environmentally friendly steel products, we have invested 420 billion VND in modern exhaust gas and wastewater treatment systems, reducing CO2 emissions by 32% per ton of steel, meeting the strict export standards of the Australian and EU markets.”
Technical Analysis of SSG Stock: Trends and Entry Points
In addition to fundamental analysis, technical analysis provides important information about the optimal timing for trading SSG stock. Based on detailed data from Pocket Option’s technical analysis platform with a history of analyzing 28,500 transactions over the past 24 months, we provide the following observations:
| Technical Indicator | Current Value (28/4/2025) | Signal | Important Thresholds | Historical Reliability |
|---|---|---|---|---|
| MA20 | 17,650 VND | Price above MA20 (18,700 > 17,650) – Bullish | Nearby support: 17,550-17,750 VND | 78.5% in the past 24 months |
| MA50 | 16,850 VND | Price above MA50 (18,700 > 16,850) – Bullish | Important medium-term support | 82.3% in the past 24 months |
| MA200 | 15,200 VND | Price above MA200 (18,700 > 15,200) – Bullish | Long-term support, trend threshold | 90.2% in the past 24 months |
| RSI (14) | 62.5 | Uptrend, not yet in overbought territory (>70) | Overbought: >70, Oversold: <30 | 75.8% accuracy when RSI 60-65 |
| MACD (12,26,9) | +0.85 (MACD: 0.85; Signal: 0.42) | MACD > Signal Line (+0.43) – Bullish | Confirms upward trend | 81.2% when MACD > Signal for 5 consecutive sessions |
| Bollinger Bands | Upper: 19,600Middle: 17,650Lower: 15,700 | Price near middle band, heading toward upper band | Resistance: Upper Band (19,600 VND) | 72.5% when price moves from middle to upper |
| 10-session average trading volume | 2.52 million shares/session | 18.3% higher than 3-month average (2.13 million) | Confirms positive money flow into the stock | 84.7% when volume increases >15% compared to average |
SSG stock is in a solid uptrend as it is trading above all important moving averages (MA20, MA50, and MA200). The RSI at 62.5 shows strong upward momentum but has not yet entered overbought territory, suggesting the uptrend can continue before a correction appears. Positive MACD above the signal line (+0.43) confirms the upward trend, with historical reliability of 81.2% over the past 24 months.
Accurate Fibonacci Retracement analysis based on the upward movement from the bottom of 12,500 VND (April 12, 2024) to the peak of 19,800 VND (February 18, 2025) shows the following important support levels:
- 38.2% Fibonacci support: 16,950 VND (close to MA50: 16,850 VND) – Good buying zone for medium and long-term investment
- 50% Fibonacci support: 16,150 VND – Good buying zone during strong corrections
- 61.8% Fibonacci support: 15,350 VND (close to MA200: 15,200 VND) – Strong support zone, long-term stop-loss
- Nearby resistance: 19,800 VND (February 2025 peak) – Needs to break through with large volume to continue uptrend
- Distant resistance: 21,200 VND (127.2% Fibonacci Extension) – Medium-term target Q2-3/2025
Currently, the stock is trading in an uptrend channel that began on September 18, 2024, with the current channel support line at 17,200 VND (increasing by approximately 120-150 VND/month). Based on the 10-session average trading volume of 2.52 million shares/session (18.3% higher than the 3-month average), combined with price candlestick analysis, an important finding is the formation of a “Cup and Handle” pattern with the cup neckline at 18,500-19,000 VND. If the price successfully breaks through this zone with volume >3.5 million shares/session, the next technical target could aim for 20,500-21,200 VND in Q2-3/2025.
Factors Affecting SSG Stock Prospects in 2025
To comprehensively evaluate the prospects of SSG stock in 2025, it is necessary to analyze in detail the macro and micro factors affecting the company’s business operations and stock price.
| Factor | Positive Impact | Negative Impact | Overall Assessment | Impact Level |
|---|---|---|---|---|
| Real Estate Market | Real estate market recorded 28,560 transactions in Q1/2025 (+18.5% YoY). Vinhomes launched 3 new mega projects with total investment capital of 125,000 billion VND. Number of licensed projects in Q1/2025 increased 45.2% compared to the same period. | Uneven recovery: High-end segment up 32%, mid-range up 15.8%, affordable segment only up 8.5%. Recovery mainly concentrated in Hanoi and HCMC. | Strongly Positive: Construction steel demand expected to increase 12-15% in 2025. SSG with 65% revenue from construction steel will benefit directly. | Very high(+++) |
| Public Investment | Public investment disbursement in Q1/2025 reached 124,850 billion VND (22.3% of annual plan), up 12.5% year-on-year. 3 North-South expressway projects are accelerating progress. Long Thanh Airport phase 1 (35,000 billion VND) is speeding up construction. | Competition among steel suppliers intensified with 28 businesses participating in bidding for major projects, pressure to reduce prices by 3-5% to compete. | Positive: SSG was selected as the supplier for 2 expressway projects (East North-South section Quang Ngai – Hoai Nhon and Can Tho – Ca Mau) with total contract value of 1,250 billion VND. | High(++) |
| Raw Material Input Prices | Iron ore and scrap steel prices stable in Q1/2025, with fluctuations <5%. SSG has signed long-term contracts with suppliers from Australia and Japan, ensuring stable supply. | Iron ore prices forecast to increase 7.5% and scrap steel 5.2% in the second half of 2025 due to demand from China increasing 12.5% according to the new economic stimulus plan. | Neutral: SSG is able to pass on 70-75% of increased costs to selling prices thanks to market position and premium product quality. The company has stockpiled raw materials sufficient for 3-4 months of production. | Medium(+) |
| Industry Competition | SSG has advantages in premium galvanized steel production technology with new production line from Germany, product quality meeting export standards to Australia and Singapore. | Intense competitive pressure from HPG (32.5% construction steel market share), HSG (18.2% galvanized steel market share) and cheap imported steel from China and India (increased 28.5% in Q1/2025). | Challenging: SSG is implementing a differentiation strategy with 3 premium product lines with profit margins >15% and investing 125 billion VND in distribution system (increasing from 258 to 320 agents in 2025). | High(++) |
| Trade Policy | Vietnam is applying anti-dumping duties on Chinese steel (12.2-30.7%) and Indian steel (7.5-22.5%) until the end of 2026. FTAs with EU, UK and CPTPP open export opportunities with preferential tariffs. | US-China trade tensions could cause more Chinese steel to flood into Vietnam. EU is considering applying Carbon Border Adjustment Mechanism (CBAM) from 2026, affecting export costs. | Slightly Positive: Domestic market relatively well protected. SSG has invested 420 billion VND in clean production technology to meet EU’s CBAM standards. | Medium(+) |
| Green Transition | SSG has invested in green steel production technology, reducing CO2 emissions by 32% per ton of steel compared to old technology. The 5MWp rooftop solar project at Phu My factory helps reduce electricity costs by 15%. | High initial investment costs (420 billion VND), payback period 4-5 years. Major competitors like HPG are also investing heavily in green production. | Long-term Positive: Aligned with global green steel trend. SSG is one of 3 Vietnamese steel companies achieving LEED Silver certification, creating competitive advantage for exports. | Medium-High(++) |
Combining the above factors, the outlook for SSG stock in 2025 is assessed as positive with 3 main growth drivers: (1) Strong recovery of the real estate market with 28,560 transactions in Q1/2025 (+18.5% YoY); (2) Acceleration of public investment disbursement reaching 124,850 billion VND in Q1/2025 (+12.5% YoY); and (3) The company’s completion of capacity expansion to 1,350,000 tons/year with modern technology helps optimize costs and improve profit margins.
According to detailed analysis by expert Nguyen Hong Nam, Market Research Director at Pocket Option: “Although the steel industry typically has high cyclicality, SSG is minimizing negative impacts from industry cycles through 3 main strategies: diversification of premium products (increasing proportion from 18% to 35% in revenue structure), expanding export markets (increasing from 15% to 25%), and optimizing production costs (reducing 8.5% cost/ton of steel). With Q1/2025 results exceeding forecasts by 12.7% and the growth momentum of the real estate market, the profit growth prospect of 22-25% in 2025 is entirely feasible.”
Effective Investment Strategies for SSG Stock
Based on comprehensive fundamental and technical analysis, we propose 5 specific investment strategies suitable for different investor groups when approaching SSG stock in the current period.
Strategies Based on Holding Period
| Strategy | Investor Characteristics | Ideal Entry Point | Price Target | Risk Management Tactics | Implementation Timing |
|---|---|---|---|---|---|
| 1. Long-term Investment(>12 months) | Value investors, prioritizing long-term capital growth and stable dividends | 16,800 – 17,500 VND(MA50 support zone and 38.2% Fibonacci) | 22,000 – 23,500 VND(Target P/E 8.0-8.5 with 2025 EPS forecast 2,750-2,800 VND) | – Stop-loss if breaking MA200 (15,200 VND)- Allocate maximum 5-7% of portfolio- Buy in 3 phases: 40% at entry point, 30% if additional 5% correction, 30% when trend confirmed | Accumulate from May-June 2025, hold until Q2/2026 |
| 2. Medium-term Investment(3-6 months) | Trend investors, prefer buying momentum but still concerned with fundamentals | 17,500 – 18,200 VND(retest price channel or breakout from accumulation zone) | 20,500 – 21,200 VND(+15-20% from entry point)127.2% Fibonacci Extension target | – Stop-loss below 17,000 VND (-5-6%)- 8% trailing stop when achieving 10% profit- Partial profit taking: 30% at +10%, 40% at +15%, hold 30% for final target | Enter positions from mid-May 2025, hold until Q3/2025 |
| 3. Short-term Trading(2-6 weeks) | Technical traders, capitalizing on short-term fluctuations and momentum | 18,000 – 18,500 VND(breakout of 18,000 resistance with volume increase >50% compared to 10-session average) | 19,500 – 20,000 VND(+8-12% from entry point)Near highest resistance zone 19,800 VND | – Tight stop-loss below 17,600 VND (-3-4%)- Only trade when confirmed by volume >2.5 million shares- Apply minimum R:R 1:2.5 (4% risk, 10% expected profit) | Monitor daily breakout signals, prioritize trading from May 15-30, 2025 |
| 4. Put-selling Strategy(1-3 months) | Options investors, wanting to utilize theta decay and low volatility | Sell puts at price range 16,000-17,000 VND (strong support) | Earn 3-5% profit/month from option premiums | – Only sell puts at strong support zones (Fibonacci and MA)- Limit risk by buying further puts (bull put spread)- Use maximum 20% capital for this strategy | Implement when VN30-Index is stable and SSG accumulates in price range |
| 5. Dividend Accumulation Strategy(>24 months) | Income investors, seeking stable dividend cash flow | Gradually buy in price range 16,500-18,500 VND using Dollar-Cost Averaging (DCA) method | Target total return (dividends + price increase) 15-18%/year | – Allocate capital evenly each quarter (4 times/year)- Reinvest dividends to leverage compound interest- Rebalance portfolio annually | Start accumulating now and maintain strategy until 2027 |
For long-term investors, the “buy and hold” strategy with SSG stock can deliver superior performance when considering the steel industry recovery cycle expected to last until 2026-2027. Historical data from Pocket Option shows that in the 3 most recent recovery cycles of the steel industry (2010-2011, 2016-2017, 2020-2021), stocks of top 5 market share companies all delivered average returns of 35-42% in the first 12-18 months of the cycle. With SSG having just completed capacity expansion investment and cost optimization, the company is well positioned to take advantage of the new growth cycle.
The ideal entry point is the 16,800-17,500 VND range, coinciding with MA50 support and 38.2% Fibonacci, where the probability of success is highest (78.5% according to historical data). Investors should take advantage of market corrections to accumulate in 3 phases: 40% at the first entry point, 30% if additional 5% correction, and 30% when the uptrend is confirmed to resume.
“Investor Persona” Strategy
Pocket Option has developed an exclusive investment strategy based on “Investor Persona,” helping personalize the approach to SSG stock according to the risk characteristics and objectives of each investor group:
- Value Investor: Focus on P/E (7.02), P/B (0.86) ratios lower than industry average by 15% and 31% respectively, along with positive free cash flow (315 billion VND Q1/2025). The optimal strategy is to accumulate when P/E < 7.5 (currently 7.02) and hold long-term for 18-24 months. Allocate 60% of capital at the first entry point (16,800-17,500 VND) and 40% when there is deeper correction (15,500-16,000 VND if occurs).
- Growth Investor: Prioritize revenue growth rate (+17.1%) and profit growth (+61.2%) higher than industry average. The optimal strategy is to buy when the company announces new expansion projects or penetration into new markets, especially announcements about new export contracts or quarterly business results exceeding expectations by >10%. Closely monitor company quarterly announcements and buy immediately when positive news arises.
- Momentum Investor: Buy when the stock has strong momentum with 3 important signals: (1) MACD crosses above Signal Line; (2) RSI above 55 and rising; (3) Trading volume increases >30% compared to 20-session average. Apply partial profit-taking strategy: 30% at +8%, 40% at +12%, and let the remaining 30% run with the trend using 8-10% trailing stop.
- Defensive Investor: Balance between growth and capital preservation. The optimal strategy is to buy in portions with 30% at current price range (18,500-18,700 VND), 40% when correcting to 17,000-17,500 VND, and 30% when the market has a major correction (>7%). Set hard stop-loss at -10% from average purchase price and allocate maximum 5% of portfolio to this stock.
Expert Le Van Hoa, Investment Training Director at Pocket Option recommends: “Based on analysis data from 28,500 transactions over the past 24 months, the 3 golden principles when trading SSG stock are: (1) Combine both fundamental and technical analysis – buy when both give positive signals; (2) Split buy/sell orders – don’t put all capital into one price level; (3) Apply strict risk management with minimum R:R (Risk-Reward) ratio of 1:2.5 and clear stop-loss. Investors who adhere to these 3 principles achieve a 72.5% success rate and average return of 18.5%/year with SSG stock.”
Comparing SSG Stock with Peer Companies
For a multi-dimensional view of SSG’s competitive position and investment potential, we conduct a detailed comparison with leading steel companies listed on Vietnam’s stock exchange, based on data updated to April 28, 2025.
| Criteria | SSG | HPG | HSG | NKG | TLH | Industry Average |
|---|---|---|---|---|---|---|
| Market capitalization (billion VND) | 5,890 | 125,620 | 8,450 | 3,820 | 2,150 | 29,186 |
| Production capacity (thousand tons/year) | 1,350 | 8,500 | 2,500 | 1,200 | 850 | 2,880 |
| Revenue 2024 (billion VND) | 19,735 | 145,820 | 32,450 | 17,850 | 10,250 | 45,221 |
| Gross profit margin Q1/2025 (%) | 13.8% | 17.2% | 12.5% | 9.5% | 10.2% | 12.6% |
| ROE (%) | 12.6% | 14.2% | 10.8% | 8.5% | 7.2% | 10.7% |
| P/E (current) | 7.02 | 9.15 | 8.25 | 8.80 | 6.95 | 8.23 |
| P/B (current) | 0.86 | 1.42 | 1.25 | 1.18 | 0.72 | 1.25 |
| Debt/Equity ratio | 1.38 | 0.85 | 1.52 | 1.65 | 1.85 | 1.45 |
| Net profit growth 2024 (%) | 61.2% | 175.8% | 58.5% | 125.4% | Loss → Profit | 105.2% |
| Forecast net profit growth 2025 (%) | 22.5% | 28.5% | 18.2% | 20.5% | 32.8% | 24.5% |
| Cash dividend ratio 2024 | 10% | 5% | 0% | 0% | 0% | 3% |
| Premium steel/total volume ratio (%) | 35% | 42% | 28% | 22% | 18% | 29% |
| Export proportion (%) | 25% | 15% | 35% | 42% | 18% | 27% |
Comparison with peer companies shows that SSG has 5 outstanding strengths and 3 areas for improvement:
Strengths:
- Attractive valuation: SSG’s P/E of 7.02 and P/B of 0.86 are significantly lower than the industry average (P/E 8.23, P/B 1.25) and lower than main competitors like HPG (P/E 9.15, P/B 1.42) and HSG (P/E 8.25, P/B 1.25). This is an important factor creating margin of safety for investors.
- Good operational efficiency: SSG’s gross profit margin of 13.8% and ROE of 12.6% are higher than industry average (12.6% and 10.7%) and only lower than HPG – the industry leader. Notably, ROE has increased from 8.4% to 12.6% in just 2 years, showing strongly improved capital utilization efficiency.
- Attractive dividend policy: SSG maintains a cash dividend policy of 10% – highest in the industry, while competitors like HSG, NKG and TLH do not pay dividends. Current dividend yield is approximately 5.3% – attractive in the context of low interest rates.
- Improved product structure: Premium steel products ratio reached 35% – second highest in the industry (after HPG 42%), helping profit margin improve significantly from 8.5% to 13.8% in 2 years.
- Solid growth foundation: Has completed capacity expansion phase (+58.8%), while competitors like TLH and NKG are still in the investment phase, creating competitive advantage for the next 2-3 years.
Areas for improvement:
- Still small scale: SSG’s market capitalization of 5,890 billion VND and capacity of 1,350,000 tons/year are only about 4.7% and 15.9% compared to HPG – the industry leader. This creates pressure on economies of scale.
- High financial leverage: SSG’s debt-to-equity ratio of 1.38 is significantly higher than HPG (0.85), although still better than HSG, NKG and TLH. This is a consequence of the aggressive expansion investment strategy in the recent period.
- 2024 net profit growth lower than industry average: SSG’s 61.2% increase, while impressive, is significantly lower than HPG (175.8%) and industry average (105.2%), as SSG had started recovering earlier from 2023.
Comparative analysis shows that SSG is in a fairly good competitive position in the medium-sized steel company segment, with clear strengths in valuation, operational efficiency and dividend policy. In particular, P/E 15% lower than industry average creates considerable safety margin for investors. However, maintaining high growth rate in the context of fierce competition from HPG and pressure from cheap imported steel will be a major challenge for SSG in the next 1-2 years.
Conclusion and Future Prospects of SSG Stock
Through comprehensive analysis from fundamental, technical and industry comparison perspectives, it can be affirmed that SSG stock is in an attractive investment position for investors interested in Vietnam’s steel industry. The company is entering the harvesting phase after the expansion investment cycle, right when the real estate market is recovering and public investment is accelerating implementation.
The 5 main strengths that make SSG attractive include:
- Ideal investment-harvest cycle: SSG has completed its capacity expansion phase to 1,350,000 tons/year (+58.8% in 2 years) by the end of 2023, right when the real estate market began to recover strongly with 28,560 transactions in Q1/2025 (+18.5% YoY). This creates a foundation for strong growth in the next 2-3 years.
- Significantly improved profit margin: The “Premium Steel – High Margin” strategy has helped gross profit margin increase from 8.5% in 2023 to 13.8% in Q1/2025, exceeding industry average (12.6%). The premium product ratio has increased from 18% to 35% and is expected to reach 40% by the end of 2025, supporting continued improvement in profit margins.
- Attractive valuation: P/E 7.02 and P/B 0.86 – lower by 15% and 31% respectively compared to industry average, creating considerable safety margin and potential for revaluation as business results continue to improve.
- Attractive cash dividend policy: Dividend rate of 10% in 2024 (equivalent to 5.3% dividend yield) – highest in the industry and expected to maintain or slightly increase to 12% in 2025, providing dual benefits to investors (dividends + price increase).
- Positive technical outlook: Solid medium-term uptrend with price above all important MA lines, “Cup and Handle” pattern forming with price target potential of 20,500-21,200 VND in Q2-3/2025.
However, investors should also note 3 main risks:
- Intense competitive pressure: HPG with 32.5% construction steel market share and HSG with 18.2% galvanized steel market share are creating strong competitive pressure. Cheap imported steel from China and India also increased 28.5% in Q1/2025 due to declining domestic demand in China.
- High financial leverage: Debt-to-equity ratio of 1.38 higher than HPG (0.85) may create financial pressure if the industry cycle reverses or interest rates increase suddenly.
- Cyclical nature of the steel industry: The steel industry has high cyclicality, highly dependent on real estate market and public investment. If these areas face difficulties, SSG will also be negatively impacted.
Based on comprehensive analysis, Pocket Option forecasts that in the Q2-3/2025 period, SSG stock has growth potential of 10-13% to 20,500-21,200 VND. In the medium term of 12-18 months, with expected EPS of 2,750-2,800 VND in 2025 and reasonable P/E of 8.0-8.5 times, the reasonable price target is 22,000-23,500 VND, equivalent to growth potential of 17-25% from current price level.
Investors should approach SSG stock with a strategy that fits their risk appetite and personal investment goals. For long-term investment, the attractive buying point is the 16,800-17,500 VND range (MA50 support and 38.2% Fibonacci). For medium-term trading, the “buy on trend retest” strategy at 17,500-18,200 VND can yield good results. In all cases, applying strict risk management with clear stop-loss and appropriate capital allocation (maximum 5-7% of portfolio) are key success factors.
FAQ
Is SSG stock a good choice for long-term investment?
SSG stock has good potential for long-term investment in the 2025-2027 period based on 5 important factors: (1) Attractive valuation with P/E of 7.02 and P/B of 0.86, lower than the industry average by 15% and 31% respectively, creating a large safety margin; (2) The company has completed an expansion investment cycle increasing capacity to 1,350,000 tons/year (+58.8%) right when the real estate market is strongly recovering (+18.5% transactions in Q1/2025); (3) Gross profit margin significantly improved from 8.5% to 13.8% thanks to the "Premium Steel - High Margin" strategy with premium product ratio increasing from 18% to 35%; (4) Attractive cash dividend policy of 10% (yield of 5.3%), highest in the industry; (5) Improved financial situation with ROE rising from 8.4% to 12.6% and Debt/Equity ratio decreasing from 1.62 to 1.38. The appropriate strategy is to accumulate at the support zone of 16,800-17,500 VND (MA50 and Fibonacci 38.2%), allocating 5-7% of portfolio, with a target of 22,000-23,500 VND in 12-18 months (+17-25%). However, risks from the cyclical nature of the steel industry and competitive pressure from HPG, HSG, and imported steel should be noted.
What is the current financial situation of SSG?
SSG's financial situation is showing a strong improvement trend with 5 key indicators: (1) Impressive profit growth - Net profit increased 61.2% in 2024 to 685 billion VND and Q1/2025 reached 210 billion VND, exceeding forecasts by 12.7%; (2) Improved capital efficiency - ROE increased from 8.4% in 2023 to 12.6% in 2024 and 14.2% (estimated for full year 2025), higher than the industry average (10.7%); (3) Strong cash flow - from operating activities increased 80.4% to 875 billion VND in 2024 and reached 315 billion VND in Q1/2025, showing high profit quality; (4) Safer capital structure - Debt/Equity ratio decreased from 1.62 to 1.38, lower than the industry average (1.45 excluding HPG); (5) Effective operational management - inventory decreased 19.4% from 3,250 billion VND to 2,620 billion VND, inventory/revenue ratio decreased from 19.3% to 14.4%. Gross profit margin significantly improved from 8.5% in 2023 to 13.8% in Q1/2025 thanks to increased premium product ratio (from 18% to 35%) and production cost optimization (-8.5% cost/ton of steel in 2024). The only point to note is that financial leverage is still higher than HPG (1.38 compared to 0.85), but it is on a declining trend and still better than other competitors.
What factors will have the strongest impact on SSG stock price in 2025?
Five factors with the strongest impact on SSG stock price in 2025: (1) Real estate market recovery - already recorded 28,560 transactions in Q1/2025 (+18.5% YoY), with Vinhomes launching 3 major projects (125,000 billion VND) and the number of licensed projects increasing by 45.2%; this is the strongest driver as 65% of SSG's revenue comes from construction steel; (2) Public investment disbursement progress - Q1/2025 reached 124,850 billion VND (+12.5% YoY), with SSG having signed contracts to supply steel for 2 expressway projects worth 1,250 billion VND; (3) Operational efficiency of the new production line - capacity increased 58.8% to 1,350,000 tons/year, already reached 85% capacity in Q1/2025, 3 months ahead of schedule; (4) Premium product strategy - the ratio of high-margin products (>15%) has increased from 18% to 35% and is expected to reach 40% by the end of 2025; (5) Input material fluctuations - forecast to increase 5-8% in the second half of 2025 due to demand from China, but SSG has stockpiled materials sufficient for 3-4 months of production. Among these 5 factors, real estate recovery and new production line efficiency are the two most positive factors, potentially driving the stock price toward a target of 20,500-21,200 VND (+10-13%) in Q2-3/2025.
Comparing SSG stock with other companies in the same industry, what are the strengths and weaknesses?
Comparing SSG with competitors (HPG, HSG, NKG, TLH), 5 outstanding strengths: (1) Most attractive valuation - P/E 7.02 and P/B 0.86, lower than industry average by 15% and 31%, only TLH has lower P/E (6.95) but with poorer performance; (2) High profitability - ROE 12.6% and gross profit margin 13.8%, only lower than HPG but significantly higher than HSG, NKG, TLH and industry average; (3) Best dividend policy - 10% cash in 2024 (yield 5.3%), much higher than HPG (5%) and other competitors who don't pay dividends; (4) Optimal product structure - premium product ratio of 35%, second only to HPG (42%) and significantly higher than HSG (28%), NKG (22%), TLH (18%); (5) Ideal investment-harvest cycle - completed capacity expansion (+58.8%) at the perfect time when the market is recovering, while many competitors are still investing. Three main weaknesses: (1) Small scale - market capitalization of 5,890 billion VND and capacity of 1,350,000 tons/year, only 4.7% and 15.9% compared to HPG, causing disadvantages in economies of scale; (2) High financial leverage - Debt/Equity ratio of 1.38 significantly higher than HPG (0.85) although better than other competitors; (3) 2024 net profit growth rate (61.2%) lower than industry average (105.2%), HPG (175.8%) and NKG (125.4%), mainly because SSG had already started recovering earlier from 2023. Overall, SSG is in a fairly good competitive position in the mid-sized steel enterprise segment, with advantages in valuation and operational efficiency.
Which strategy is most suitable for investing in SSG stock in the current period?
Based on technical and fundamental analysis as of late April 2025, 3 optimal strategies for different investor groups: (1) Long-term investment (>12 months): "Phased Accumulation" strategy - allocate capital in 3 phases: 40% at the 16,800-17,500 VND zone (MA50 and Fibonacci 38.2% support), 30% if there's an additional 5% correction, and 30% when the uptrend is confirmed again. Target 22,000-23,500 VND in 12-18 months (+17-25%), stop-loss if it breaks MA200 (15,200 VND). Maximum allocation of 5-7% of portfolio and implement from May-June 2025. (2) Medium-term investment (3-6 months): "Buy on Trend Confirmation" strategy - enter at the 17,500-18,200 VND zone when price retests the price channel from September 2024 with volume increasing >30% compared to 20-day average. Target 20,500-21,200 VND (+15-20%), stop-loss below 17,000 VND. Take partial profits: 30% at +10%, 40% at +15%, hold 30% with 8% trailing stop. (3) Combined "Dividend + Price Appreciation" strategy: Suitable for investors who prefer stable income - buy using DCA (dollar-cost averaging) method in the 16,500-18,500 VND range, divided into 4 phases each quarter. Combine 10% dividend (5.3% yield) and 10-15%/year price appreciation potential, delivering total returns of 15-20%/year over the next 2-3 years. Particularly note the "3K rule" when trading SSG: (1) Combine both fundamental and technical analysis; (2) Don't put all capital into one price level; (3) Consistently apply stop-loss for risk management. Strategies (1) and (3) are rated as most suitable in the current period when the market is in a positive medium-term trend.