Viet Dragon Securities - Analyst Pin-board VNM - Material price increase to raise pressure on Vinamilk’s profit margin.

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Viet Dragon Securities

Son Tran

Analyst Pin-board VNM - Material price increase to raise pressure on Vinamilk’s profit margin.

We are cautious that VNM’s business results will only post low single-digit growth rate of both revenue and NPAT in FY2021, mainly due to (1) the weakening demand of dairy products amid extending Covid-19 in Vietnam and (2) unavoidably negative impact of material price surge on its profit margins
FY2021 estimated revenue and NPAT to post VND 59,694 Bn (or USD 2.6 Bn, +0.1% YoY) and VND 11,487 Bn (or USD 498 mn, +2.2% YoY) respectively, completing 96% revenue target and 102% NPAT target. Correspondent 2021 EPS will be VND 4,887, and 2021 forward PER will be 18.5x.
We are prudent about its upside prospect in FY2021 as the company will be lacking of new investment stories, backed by our concern that saturation phase of Vietnam dairy market is coming sooner than our previous expectation. Therefore, we recommend to ACCUMULATE.

13/05/2021 6 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Son Tran

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Analyst Pin-board VNM - Material price increase to raise pressure on Vinamilk’s profit margin.

MACRO UPDATE MAY 2025: SENTIMENT SHOWS SHORT-TERM IMPROVEMENT

MOVING FORWARD

SIP – Conservative targets for the year ahead

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