Company Insight

Saigon Beer-Alcohol-Beverage Corporation (HOSE: SAB) is the second largest beer producer in Vietnam with a market share of 35% (Euromonitor, 2024). SAB takes the lead in the number of breweries with a capacity of 3.1 billion liters/year, providing from mid-priced to premium products. 

SAB recorded weak business results in the first half with revenue decreased 17.4% YoY and after-tax profit decreased 12.5% due to the impact of excise tax calculation after the consolidation with Sabibeco and reduced output in the context of difficult consumption. However, we still appreciate SAB with its position as an industry leader with good financial ratios, low debt and attractive dividend yield; despite the unfavorable short-term industry context; combined with a valuation index that is low compared to history. Based on the FCFF and P/E methods, we recommend buying SAB with a target price of VND 58,500, corresponding to an expected return of 24%,  2025F P/E of 18.6x.