Vietnam Dairy Products Corporation (Vinamilk)
Company Report BUY July 2nd, 2008 Chart 1A - Price Chart Chart 1 - Earnings model (mil VND) FY 2005A yoy F Y 2006A yoy FY 2007 yoy FY 2008F yoy 180 Revenues 5,638,784 49.4% 6,245,619 10.8% 6,648,193 6.4% 8,247,326 24.1% 160 Profit before tax 602,600 30.6% 662,774 10.0% 955,381 44.1% 1,401,835 46.7% 140 Net Profit 605,484 31.2% 659,890 9.0% 963,448 46.0% 1,205,578 25.1% 120 Pre-tax Profit Margin 10.7% -12.6% 10.6% -0.7% 14.4% 35.4% 17.0% 18.3% 100 Net Profit Margin 10.7% -12.2% 10.6% -1.6% 14.5% 37.2% 14.6% 0.9% 80 EPS (VND) 3,808 NA 4,150 NA 5,585 34.6% 6,836 22.4% BVPS (VND) 14,132 NA 17,223 NA 24,624 43.0% 29,377 19.3% 2-Jan-08 4-Mar-08 26-Jun-08 29-Jan-08 31-Mar-08 25-Apr-08 30-May-08 P/E 29.4 NA 27.0 NA 20.1 -25.7% 16.4 -18.3% Source: HOSE P/B 7.9 NA 6.5 NA 4.5 -30.1% 3.8 -16.2% (mil VND) FY2009F yoy FY 2010F yoy FY 2011F yoy FY 2012F yoy Chart 1B - Stock Data Revenues 9,549,805 15.8% 10,949,100 14.7% 12,587,252 15.0% 14,388,959 14.3% Profit before tax 1,500,181 7.0% 1,674,044 11.6% 1,795,570 7.3% 2,050,167 14.2% Price VND 112,000 Net Profit 1,125,135 -6.7% 1,255,533 11.6% 1,346,678 7.3% 1,537,626 14.2% Outstanding shares 175,275,670 Pre-tax Profit Margin 15.7% -7.6% 15.3% -2.7% 14.3% -6.7% 14.2% -0.1% Forward P/E 16.4 Net Profit Margin 11.8% -19.4% 11.5% -2.7% 10.7% -6.7% 10.7% -0.1% Forward P/B 3.8 EPS (VND) 6,114 -10.6% 6,822 11.6% 7,317 7.3% 8,355 14.2% 52 Week Range 90,000 - 198,000 BVPS (VND) 30,011 2.2% 31,067 3.5% 32,417 4.3% 34,384 6.1% Performance (12 months) -29% P/E 18.3 11.8% 16.4 -10.4% 15.3 -6.8% 13.4 -12.4% Market Capitalization VND 19,630,875,040,000 P/B 3.7 -2.1% 3.6 -3.4% 3.5 -4.2% 3.3 -5.7% US$ 1,165,382,905 Source: Vinamilk, HSC Source: HSC Chart 1C - Key Numbers (VNDmm) 2005 2006 2007 Vietnam Dairy Products Corporation (Vinamilk) Total assets 3,897,936 3,600,533 5,425,117 Owner’s Equity 2,246,917 2,738,383 4,315,937 Revenue 5,638,784 6,245,619 6,648,193 We initiate coverage on Vinamilk with a BUY rating and a target price of Pre-tax profit 602,600 662,774 955,381 VND147,000.
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