VNM - Business results to recover in 2H-FY21
We revise up our estimate by 7.5% for 2H-FY21 domestic revenue (VND 26,522 Bn, USD 1.1 Bn, +5% YoY) versus our previous figures (VND 24,665 Bn, USD 1 Bn, -1% YoY) as we have a more optimistic view about the company’s prospects in the second half as dairy demand in Ho Chi Minh City is improving. Brighter results in the second half will cushion the weak performance in the first half to help VNM maintain flat NPAT growth for the whole FY2021.
Based on the 50%:50% valuation mix of DCF and PER, we evaluate VNM share value at VND100,000, up 6% versus our previous target price mainly because of our higher estimates for VNM’s revenue (+3%) and NPAT (+3%).
We maintain an ACCUMULATE, with a total expected return of 16%, including a 4.5% cash dividend yield.
Vietnam Dairy Products Joint Stock Company (Vinamilk) is a Vietnam-based company engaged in the food processing industry. It is involved in the manufacturing, marketing and distribution of dairy products, such as milk of various forms and milk derived products, as well as confectioneries and non-alcoholic beverages. The Company also provides packaging and logistics services, along with other technical support to cultivation and breeding processes to farmers.
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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