Viet Nam Dairy Products JSC – Hold (VNM : HSX – Food & Beverage)  

Ngày đăng February 21, 2019

Viet Nam Dairy Products JSC – Hold (VNM : HSX – Food & Beverage)


  • VNM’s FY2018 unaudited consolidated results were a bit better than expectations with a slight recovery in Q4.


  • Net sales advanced slightly by 3.0% y/y due to the first contribution of sugar sales, while dairy products sales was weak with a decline of 1.6% y/y to VND 52,561 billion.


  • GPM dropped slightly to 46.8% due to the consolidation of its low margin sugar business while dairy GPM rose slightly from 47.2% in FY2017 to 48.3% in FY2018.


  • SG&A reached an all-time high as selling expenses to boost demand rose.


  • HSC now calls for net sales growth of 5.0% y/y and net profit growth of 4.4% y/y in FY2019.


  • It seems that the growth slowdown is more than a passing fad, and VNM may need to focus more on product innovation and consider other ways to boost growth such as M&A or expansion into other markets.


  • Reiterate Hold. We see fair value for the company at VND 131,089 per share, or a FY2019F P/E of 23.8x.



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