[BUY/TP: 61,300] Twin growth driver


- Soymilk segment (takes 46% of 1H21 revenue) is expected to return to positive sales growth since 2021 (2020: -9.2%YoY), thanks to 1) consumption of branded soymilk in Vietnam is increasing (according to Kantar report); and 2) QNS enhances the advertising and promotion activities in domestic market as well as initially setting their foot in foreign markets (China and Japan) to boost revenue (3Q21 output increased by 15%YoY).

-Sugar segment (takes 21% of 1H21 revenue) rises sharply thanks to the strong increase in both of domestic sugar consumption and selling price. Firstly, Vietnam government has imposed anti-dumping (AD) tax on sugar imported from Thailand since Jun-21, together with investigated tax - avoidance on sugar imported from 5 ASEAN countries since Sept-21. These decisions drive the downward trend of imported sugar (Jul-21: -13.4%YoY). Secondly, the global sugar price is forecasted to keep the uptrend, combined with the restriction of imported sugar will keep the domestic sugar price at a high level in 2021-22 period.

QNS-Quang Ngai Sugar
An Nguyen

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