Vinamilk - Sacombank
RESEARCH & INVESTMENT ADVISORY DEPARTMENT
May 2010
VIETNAM DAIRY PRODUCTS JSC (VINAMILK)
UPDATED REPORT DAIRY INDUSTRY IN QI/2010 The price of dairy products fell about 15% - 20% in Q1/2010. In Q1/2010, the price of powder milk in the global market underwent a corrective phase, falling by 15% - 20% after the 60% consecutive rise in 2009. The price of skimmed milk in Western Europe in March 2010 fell to 2725 USD/ton compared to 3437 USD/ton in December 2009. At the same time, the price of Australian skimmed milk in March 2010 also declined to 2875 USD/ton compared to 3400 USD/ton in December 2009. The decrease in the price of material milk can pull down the material cost of dairy companies. However, dairy product companies which signed purchase contracts for materials for the whole year of 2010 at a fixed price in December 2009 may not benefit much from the material costs. Weekly price of Autralian milk powder (USD/ton) 4000 3500 3000 2500 2000 1500
State Foreign Others PRICE CHART Ticker Stock exchange Expected price Market price (26/5/2010) 52 week high 52 week low Outstanding shares Market value (bil. VNĐ): 10 day - average volume Dividen (2010E) OWNERSHIP 47.5% 11.66% 40.84% VNM HOSE 110.524 89.500 99.000 64.000 353.056.800 32.481 281.772 30%
SHARE INFORMATION
Skimmed Milk Powder
Whole Milk Powder
Weekly price of Western Europe milk powder 4,500 4,000 3,500 3,000 2,500 2,000 1,500
Skim milk powder
Whole milk powder
Source:Vietnam Dairy Association, USDA
Please read the Disclaimer at the end of this report carefully
VIETNAM DAIRY PRODUCTS JSC (VINAMILK)
Dairy product company increased the milk retail price by 10% - 15%. In Q1/2010, milk retail price raised about 10% - 15% compared to the 6% increase in December 2009. Dairy product companies therefore increased the retail price in order to ensure the profits in the context that the price of material milk rose largely at the end of 2009. The market share of liquid milk and yoghurt
May 2010
VIETNAM DAIRY PRODUCTS JSC (VINAMILK)
UPDATED REPORT DAIRY INDUSTRY IN QI/2010 The price of dairy products fell about 15% - 20% in Q1/2010. In Q1/2010, the price of powder milk in the global market underwent a corrective phase, falling by 15% - 20% after the 60% consecutive rise in 2009. The price of skimmed milk in Western Europe in March 2010 fell to 2725 USD/ton compared to 3437 USD/ton in December 2009. At the same time, the price of Australian skimmed milk in March 2010 also declined to 2875 USD/ton compared to 3400 USD/ton in December 2009. The decrease in the price of material milk can pull down the material cost of dairy companies. However, dairy product companies which signed purchase contracts for materials for the whole year of 2010 at a fixed price in December 2009 may not benefit much from the material costs. Weekly price of Autralian milk powder (USD/ton) 4000 3500 3000 2500 2000 1500
State Foreign Others PRICE CHART Ticker Stock exchange Expected price Market price (26/5/2010) 52 week high 52 week low Outstanding shares Market value (bil. VNĐ): 10 day - average volume Dividen (2010E) OWNERSHIP 47.5% 11.66% 40.84% VNM HOSE 110.524 89.500 99.000 64.000 353.056.800 32.481 281.772 30%
SHARE INFORMATION
Skimmed Milk Powder
Whole Milk Powder
Weekly price of Western Europe milk powder 4,500 4,000 3,500 3,000 2,500 2,000 1,500
Skim milk powder
Whole milk powder
Source:Vietnam Dairy Association, USDA
Please read the Disclaimer at the end of this report carefully
VIETNAM DAIRY PRODUCTS JSC (VINAMILK)
Dairy product company increased the milk retail price by 10% - 15%. In Q1/2010, milk retail price raised about 10% - 15% compared to the 6% increase in December 2009. Dairy product companies therefore increased the retail price in order to ensure the profits in the context that the price of material milk rose largely at the end of 2009. The market share of liquid milk and yoghurt