Company Insight

Update recommendation BUY, target price at VND 60,400

Saigon Beer-Alcohol-Beverage Corporation (HOSE: SAB) is the second largest beer producer in Vietnam. 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 60,400, equivalent to a potential upside of 31% from the current market price. A consistent cash dividend payout ratio, with an expected dividend yield of 11%, is an attractive factor to consider for investment.  

Update SAB’s business result in Q2/2026

Sabeco recorded Q2/2026 revenue of VND 6,888 billion (+1.2% YoY), with beer segment revenue rising 2.2% YoY to VND 6,453 billion, driven primarily by price hikes implemented in July 2025, followed by increases in April and May 2026, despite negative volume growth. Gross profit rose 8.8% YoY as the gross margin improved by 2.7 percentage points (pps) due to favorable malt prices; however, net profit remained largely flat due to higher selling, general, and administrative (SG&A) expenses and reduced contributions from joint ventures and associates.

For the first half of 2026, net revenue reached VND 13,345 billion (+5.8% YoY) and net profit hit VND 2,488 billion (+21.4% YoY), achieving 46% and 50% of the full-year targets, respectively. The accumulated gross margin for H1/2026 stood at 38% (+3.7 pps YoY), while the SG&A margin was 19.1% (+1.7 pps YoY) and the net profit margin was 18.6% (+2.4 pps YoY).