Shares fell below VND 77,000, Vinamilk dropped in the top 10 by market capitalization

After last week’s drop, share VNM recovered 2.11% in the first session of the week. However, the decrease in price returned on March 22 when this code lost 0.9% and closed at 76,900 VND/share.

VNM’s market price at this time has not improved much compared to the bottom of 75,100 dong/share set on 9/3. Vinamilk’s market capitalization is currently 160,717.6 billion dong, making enterprise dropped out of the top 10 companies with the largest market capitalization. The last position in the top 10 by market capitalization is VPBank with a market capitalization of 163,815.7 billion VND.

VNM session on March 22 decreased while the whole market stock up to 650 stocks increased, 63 stocks increased to the limit compared to 404 stocks decreased, 15 stocks fell to the floor. VNM was also one of the four stocks in the VN30 basket that fell and was the one that had the most negative impact on the VN-Index, dragging down the main index to 0.37 points.

VN30-Index increased by 10.73 points, equivalent to 0.71% to 1,513.4 points and thereby supported the VN-Index to increase 8.83 points, or 0.59% to 1,503.78 points. The HNX-Index increased 3.05 points, or 0.67% to 461.35 points, and the UPCoM-Index increased 0.62 points, or 0.54%, to 116.8 points.

The decline of VNM stock occurred in the context that the growth rate of the “boss” of the dairy industry showed signs of slowing down.

According to Vietcombank Securities Company (VCBS), in 2022, Vinamilk will still face challenges in growth as consumption demand recovers at a lower rate than expected after Covid-19 although the Government will no longer implement implement blockade measures.

In the context of slow growth of the domestic market due to slow consumption demand and a downward trend in consumption, Vinamilk has made great efforts in promoting sales by actively expanding export markets to other countries. neighborhood, building a new product portfolio.

VCBS forecasts that Vinamilk’s 2022 net revenue will grow by 2.5% to VND 62,442 billion and the parent company’s profit after tax will reach VND 11,065 billion (up 5.1% compared to 2021).

“In the next 2-3 years, Vinamilk does not have much room for growth, although Vinamilk has actively expanded export markets to countries in the region. New strategies such as expanding into other segments such as beef expected to be able to contribute much to business results by 2023”, according to VCBS.

Viet Capital Securities Company (VCSC) believes that Vinamilk’s average single-digit growth prospects (including 4% EPS growth in 2022) will limit the stock’s ability to revalue the stock’s valuation. .

However, VNM’s 2022 P/E of 17x (based on VCSC’s forecast) is still quite attractive compared to the 5-year average sliding P/E of its peers in the region of 26x. VNM also has a fairly high dividend yield of around 5%.

According to Vinamilk’s 2021 annual report just announced, the company is expected to expand its market share by 0.5% to 56% in 2022 and total revenue will also increase slightly by nearly 5% to VND64,070 billion.

However, Vinamilk’s pre-tax profit is expected at only VND 12,000 billion, down more than 7% compared to the results achieved in 2021.

By 2026, Vinamilk expects to reach VND 86,200 billion in total revenue and VND 16,000 billion in pre-tax profit. Compound growth for the period 2021 – 2026 is 7.2% for revenue and 4.4% for profit, respectively.