Company Insight

Vietnam Dairy Products Joint Stock Company (Vinamilk, HOSE: VNM) is the leading dairy company in Vietnam and the 6th largest brand in the world. With over 47 years of operation, Vinamilk owns the largest dairy herd and distribution system in the country. In addition, the company is also continuously expanding its market to major countries such as China and the Middle East.

From a long-term view, VNM is an investment that can be considered for the following reasons: (1) Vinamilk is expected to benefit from the domestic milk shortage and the overall growth of the industry; (2) its gross margin is expected to improve due to lower raw material prices; (3) Strong financial position and high dividend payout ratio. Based on FCFF and PE methods, we recommend buy VNM with a target price of VND 84,400.