FREE

SAB – The cash dividend stands out as the primary highlight

• SAB delivered a weak Q1-FY25 result, with net revenue reaching VND 5,811 bn (-34.9% QoQ, -19.1% YoY) and NPAT-MI at VND 793 bn (-20.5% YoY). The decline was primarily due to Tet-related sales being concentrated in Q4-FY24, as the 2025 Lunar New Year fell earlier (in January), along with tighter consumer beer spending driven by Decree 168. Additionally, SAB completed the “Sabibeco” transaction, which incurred a one-off financial cost of VND 91 bn.
• A bright spot in SAB’s otherwise subdued Q1 performance was the reduction in input costs. The company had fully consumed its higher-cost raw material inventory in 2024, and starting in 2025, input prices have returned to average levels. This tailwind is expected to be more evident in upcoming quarters as one-off financial expenses no longer recur.
• With SAB’s business outlook entering a saturation phase post-COVID and the looming impact of a sharp increase in special consumption taxes, the key investment highlight lies in its steadily rising cash dividend payouts. SAB has gradually increased its dividend payout ratio since the post-COVID period—when the beer industry began to show signs of stagnation—ranging from 60% to 120%. Dividends are funded by the company’s annual net profit and a sizable retained earnings balance of approximately VND 9,200 bn.
• SAB is well-suited for dividend-focused investment strategies, offering a dividend yield of 10.4% per annum. It also appeals to value-oriented investors seeking opportunities in undervalued stocks following sharp market corrections—particularly as SAB’s market price gradually approaches its fair value of VND 48,000 per share, which already reflects the anticipated headwinds in 2025.