Sector Insight

1. H1/2025 update: Prices increased amid falling consumption volume

Beverages was the industry that recorded the heaviest decline in the first half of 2025 in both Urban and Rural areas.

2. F&B 2025 outlook

- Sugar: Sugar prices slightly decreased amid sluggish consumption and increased inventories

- Beer: Special Consumption Tax to increase from 2027 following the roadmap of 5%/year

- Dairy: Positive growth potential for consumption and expectations of lower milk powder prices to support profits in the second half of the year

3. Investment opportunities: SAB, VNM & MSN

- SAB: Attractive cash dividend yield, valuation ratio is at a low level compared to history

- VNM: Expectations of cooling raw material prices to help improve profit margins, growth drivers come from export markets and foreign companies

- MSN: Growth potential in the context of the retail-consumer sector recovering, MCH's up-listing to HOSE and market upgrade are factors supporting stock prices in the short term.