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VNM [MARKET PERFORM +4.5%] - Poised to get back on track after bump in the road - Update

Company Research

08 Nov 2018

We maintain a MARKET PERFORM rating, but trim our TP by 8% mostly due to a lower peer-based valuation (more details on page 6) while curtailing our 2019F/2020F NPAT by only 1%-2%. VNM is the prime beneficiary of Vietnam’s growing dairy consumption. However, 2018F PER of 22.6x looks full against a 2018-2021F NPAT CAGR of 8% and a regional peer average of 20.5x. 9M 2018 NPAT slid 7% YoY due to soft domestic consumption. However, we believe dairy consumption in Vietnam and hence, VNM’s sales
Tags: VNM

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