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. We use a combination of discounted cash flow and P/E methods to value SAB, and recommend BUY with a target price of VND 55,100, equivalent to a potential upside of 19.7% from the current market price. 

In Q3/2025, Sabeco recorded VND 6,437 billion revenue (-16% YoY) and net profit of VND 1,404 billion (+21% YoY). Beer revenue continued to decline by 12% YoY due to the impact of the consolidation with Sabibeco and reduced output in the context of a difficult consumer market. Thanks to the impact of the consolidation, combined with lower prices of raw materials such as barley and rice, the beer gross profit margin in Q3 also improved significantly to 38.8%, pushing the total gross profit margin to 37.1% (up 7 percentage points YoY).

Net profit growth was supported by lower financial expenses after completing the allocation of the purchase price of the SBB acquisition. However, these positive factors were also affected by increased selling and administrative expenses as SG&A margin in the period increased to 18.8% (+4.6% YoY). Thus, in the first 9 months, SAB recorded VND 19,052 billion in net revenue and VND 3,454 billion in after-tax profit, completing 60% and 71% of the plan set out at the Shareholders' Meeting, respectively.