Company Insight

Update recommendation BUY, target price at VND 61,400

Quang Ngai Sugar JSC (UpCOM: QNS) is a leading branded soy milk producer with a market share of over 90% and the second-largest sugarcane producer in Vietnam. Combining the FCFF and P/E valuation methods, we recommend BUY on QNS with a target price of VND 61,400. We expect the soy milk segment to maintain solid growth in H2/2026, offsetting the decline in the sugar segment amid persistent challenges facing the domestic sugar industry.

Update on Q2 and H1/2026

In Q2/2026, QNS recorded net revenue of VND 3,289 billion (+12.7% YoY) and net profit (NPAT) of VND 566 billion (+3.7% YoY). The sugar and soy milk segments accounted for 31% and 49% of revenue, respectively, and 18% and 65% of gross profit, respectively.

In 6M2026, revenue grew strongly YoY to VND 6,052 billion (+16.7% YoY). Gross profit margin improved thanks to a shift in revenue mix, as the soy milk segment, which has a higher gross margin, contributed a larger share compared to the sugar segment. However, higher selling, general and administrative (SG&A) expenses weighed on NPAT, resulting in NPAT growth of only 2.1% YoY to VND 958 billion. The SG&A expense ratio in H1/2026 stood at 18.1% (+4 ppts YoY), reflecting QNS's increased spending on sales promotions amid intense industry-wide competition as the sugar industry continued to face challenges, while also seeking to maintain its market share in the plant-based milk segment.