Company Insight

Quang Ngai Sugar Joint Stock Company (UpCOM: QNS) is a leading branded soy milk producer with a market share of over 90% and is the second largest producer of cane sugar in Vietnam. Based on the FCFF and PE methods, we recommend buying QNS with a target price of VND 56,000. We expect the soymilk segment to continue to maintain good growth in Q4 and offset the decline in the sugar segment in the short term.

In the first 9 months of the year, accumulated net revenue reached VND 7,872 billion (-2.4% YoY) and profit after tax reached VND 1,319 billion (-24.8% YoY). 9M net profit margin decreased by 4.9 percentage points compared to the same period due to the impact of the decline in the sugar segment and a sharp increase in selling expenses. In contrast, the dairy segment recorded good growth accompanied by improved profit margins, showing the effectiveness of implementing marketing and sales campaigns from 2024, partly benefiting from lower input material prices despite the increase in USD exchange rate.