Retain BUY rating, lower TP to VND110,000
We reiterate our BUY rating for Vinamilk but lower target price by -10.6% to VND110,000 fromVND123,000as we trimour 2021-22EPS by -3.2% and -4.3% to reflect the cut in Moc Chau Milk and Cambodia market estimates. However, we think that the current multiples (2021F PBR of 7.0x) remain compelling as the unlikeliness of margins falling further as efficiency via fixed-price contracts of raw material until 3Q21 and saving promotion and marketing cost during the pandemic period in Vietnam.
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