Quang Ngai Sugar JSC – Outperform (QNS : UPCoM – Food & Beverage)

Ngày đăng February 12, 2019

Quang Ngai Sugar JSC – Outperform (QNS : UPCoM – Food & Beverage)


  • Quang Ngai Sugar (QNS – Outperform) FY2018 unaudited numbers better than expected. Net sales increased by 5.2% y/y to VND 8,029 billion and net profit was up by 20.6% y/y to VND 1,237.8 billion.


  • Full year net sales saw moderate growth by 5.2% y/y driven by sugar and electricity, while gross profit surged by 19.4% y/y to VND 2,383.4 billion thanks to GPM improvement in core segments.


  • Soy milk saw a slight decline in sales of 0.6% y/y to VND 3,863 billion, yet GPM improved to 39.7% thanks to cost savings.


  • Sugar sales advanced by 20.6% y/y to VND 2,250.9 billion and GPM jumped to 12.3% vs. 3.3% in FY2017. Main reasons are higher output and higher production efficiency though ASP fell.


  • Electricity segment booked its first sales of around VND 130 billion and profit before tax of around VND 30 billion.


  • HSC forecasts that in FY2019 QNS will report flat net sales of VND 8,026 billion, and net profit at VND 1,362.7 billion, up 10.1% y/y. Then EPS will come at VND 5,455, meaning QNS is trading at a FY2019 P/E of 7.8x.


  • Reiterate Outperform.






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