Company Insight

In Q4/2024, SAB recorded net revenue of VND 8,933 billion (+4.85% YoY) and net profit of VND 991 billion (+2.48% YoY). For the whole year of 2024, the company recorded net revenue of VND 31,872 billion (+4.63% YoY) and net profit of VND 4,494 billion (+5.64% YoY). Gross profit margin in 2024 only reached 29.2%, down 60 basis points from 29.8% in 2023, with beer segment's gross profit margin falling to 32.8% due to increased raw material costs.

We forecast net revenue in 2025 to reach VND 33,807 billion (+6.1% YoY) and net profit after tax to reach VND 4,795 billion (+6.7%). Of which, we forecast beer segment’s revenue to reach VND 29,635 billion, equal to an increase of +6.64% YoY with expectations of stronger recovery in domestic consumption and strong growth in the Modern trade (MT) channel, while expecting gross profit margin in this segment to recover to 33.0% thanks to the full use of high-cost malt inventory and better cost management (improvements to reduce can production costs). 

Based on the combination of the FCFF and PE valuation methods, we recommend BUY on SAB with a target price of VND 68,600, which is equivalent to a return of 32.9%.