12 April 2010

SECTOR VIEW

Developing a taste for dairy

Appetite for powdered milk and yoghurt
We are POSITIVE on Vietnams dairy sector. We expect it to maintain high-growth momentum due to a growing customer base, low milk consumption per capita, rising disposable income and increasing health awareness among consumers. Distribution networks are expanding and dairy producers are launching aggressive advertising campaigns. The dairy sector, valued at VND21,275 billion (USD1.1 billion) in 2008, is among the fastest-growing in Vietnams non-discretionary consumer sector, with a CAGR of 14.6% over the last eight years. We estimate the value of the sector will rise 9.5% per annum during 2010-13, while volume should increase at a 7% CAGR for the next four years. We see growth potential in powdered milk and yoghurt. Powdered milk, which makes up 13% of Vietnams dairy market, was the most attractive sub-sector during 200309, posting double-digit CAGR of 10.7% in volume and 16.6% in value. Powderedmilk producers benefit from their ability to pass on rising imported-material costs to end consumers. We expect the sub-sector to continue to offer strong growth potential. Euromonitor has projected CAGR of 14.43% in value for the sub-sector in 2010-13. Yoghurt meanwhile accounts for 15% of the dairy markets value and includes health-conscious target consumers. The yoghurt sub-sectors value grew 12.6% in 2009, and consumers seemed relatively insensitive to price rises. The CAGR in terms of value for the yoghurt sector could remain as high as 11.8% in 2010-13. The sector faces supply and demand imbalances as domestic herds can only meet about 20% of total nationwide demand. Heavy dependence on foreign markets for input materials creates a risk of margin compression due to fluctuating prices of imported dairy products. Strong brand loyalty towards larger producers and the low price elasticity of demand for milk products help mitigate this risk. We think multinational and domestic players will face tougher competition due to rising consumer power and a broader range of substitutes. Dairy producers are under pressure to improve their product mix as milk consumers become wealthier and more health conscious. We expect limited changes in the competitive structure within each sub-sector due to rising competition among existing players and relatively high barriers to entry. The dairy market is dominated by leading domestic company Vinamilk and Dutch Lady Vietnam, a subsidiary of FrieslandCampina. Each company holds around 37-39% of the total market size. We initiate coverage on Vinamilk (HOSE:VNM), Vietnams largest listed dairy producer, with a BUY rating, given the robust demand for dairy products, coupled with the companys strong market position and planned capacity expansion. Our blended valuation approach yields a price target of VND104,000 (USD5.45), a 20.2% premium to the closing price of VND86,500 (USD4.53) and provides an expected total return of 23.1% over the next 12 months. Our price target implies 15.5x FY10E PER and 15.7x FY11E PER, which is slightly higher than other domestic food and beverage (F&B) companies, but below that of regional dairy peers.
Anh Dang (84 8) 3520-2050 - Ext : 8136 Hanh.p.dang@mekongsecurities.comH Thu Vo (84 8) 3520-2050 - Ext: 8158 Hthu.a.vo@mekongsecurities.comH Duong Pham (84 8) 3520-2050 - Ext: 8125 Hduong.t.pham@mekongsecurities.com

Please refer to important disclosures at the end of this document.

www.mekongsecurities.com

Developing A Taste For Dairy

High growth momentum

The dairy sector is among the fastest-growing industries in Vietnams non-discretionary consumer sector, with a CAGR of 12.8% between 2004 and 2009. We expect it to maintain high-growth momentum due to a growing customer base, rising disposable income and increasing brand awareness among consumers. Distribution networks are expanding and dairy producers are launching aggressive advertising campaigns. We estimate the value of the sector will rise 9.5% per annum during 2010-13, while volume should see a 7% CAGR for the next four years. Vietnam has recorded a sustainable GDP growth rate of more than 7% for the past five years and disposable income has increased to more than USD1,000 per capita. Such economic prosperity has fuelled demand for high-protein food, especially dairy products. GDP is projected to expand 7-8% annually for 2010-15, and GDP per capita is expected to reach USD1,800 by 2015. A rising population, rapid urbanisation and increasing penetration of milk consumption into broader age groups rather than the traditional newborn to 6-year-old group for powdered milk and 6-12-year-old group for traditional milk have helped expand the consumer base for dairy products. Vietnams population is expected to rise 1.2% annually from 88.7 million in 2010 to 94.3 million in 2015. Moreover, there is a clear trend towards urbanisation in the country, with approximately 30% of the population living in cities, up from only 20% in the mid-1990s. Rapid urbanisation, coupled with increasing real income, has encouraged better nutrition and the incorporation of more animal proteins and processed foods in diet. Per capita animal protein intake has more than doubled since 1990. More importantly, Vietnams milk consumption per capita is among the lowest compared with international benchmarks, suggesting ample growth potential. In 2008, dairy consumption per capita was 12 litres/person/year, compared with the average 65 litres/person/year in Asia and 100 litres/person/year worldwide. The larger dairy producers have invested heavily in expanding their distribution networks and raising brand awareness through aggressive advertising campaigns. Dairy producers typically spend around 30% of their total sales expenses on advertising. Vinamilk spent VND127.4 billion on advertising and promotion in 2008, rising to VND181.2 billion in 2009, equivalent to 14% of the years total sales expenses. Dairy sector growth is correlated to improved health awareness and newly adopted milk-drinking habits among Vietnamese consumers. National and corporate campaigns to fight against child malnutrition as well as progressive consumer education have raised awareness of the importance of daily dairy consumption. Expanding product lines to target different demographics, including young female professionals and the elderly, have helped broaden the customer base for dairy products.

SECTOR VIEW

Developing A Taste For Dairy

Chart 1: Dairy products: Population growth vs. volume growth

14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 03-04 Fluid milk 04-05 05-06 06-07 07-08 08-09 09-10F 10F-13F Population

Pow der milk

Condensed milk

Yoghurt

Source: Euromonitor, Mekong Securities

Market segmentation
The main sub-sectors of the Vietnams dairy market are: 1) fluid milk (plain milk, flavoured fluid milk, soy beverages); 2) powdered milk; 3) condensed milk; and 4) yoghurt, which is further segmented into drinking yoghurt and spoonable yoghurt.

Fluid milk
Fluid milk, at 51%, accounts for the largest share of the sector in terms of total value. Fluid milk consumption has increased 74.45% from 174.5 million litres in 2003 to 304.5 million litres in 2009. The CAGR for the period is 9.74% in volume and 13.57% in value. Although volume grew at a decreasing rate of 7.41% in 2008-09, value growth remained high at 9.87%, reflecting the low demand elasticity, owing to improved health consciousness and rising disposable income. Euromonitor forecasts that the CAGR for fluid milk will drop to 6.12% in volume and 7.88% in value during 2010-13.

SECTOR VIEW

Developing A Taste For Dairy

Chart 2: Fluid milk: Sales by sub-sector

450 400 350 million litres 300 250 200 150 100 50 0 2003 Fluid milk 2006 2009 2010F 2011F 2012F 2013F Soy beverages Flavoured fluid milk 36.3 39.9 98.3 46.4 54.8 139.4 209.1 172.2 182.1 191.7 200.7 59.4 72.9 64.6 78.7 70 84.2 75.8 89.7 81.9 95.1

Chart 3: Fluid milk: CAGR in volume and value

16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2003-2009 Volume grow th
Source: Euromonitor, Mekong Securities

13.57%

9.74% 7.88% 6.12%

2010-2013 Value grow th

Source: Euromonitor, Mekong Securities

Powdered milk
Powdered milk accounts for 13% of Vietnams dairy market. It is the most attractive subsector, with double-digit CAGR of 10.7% in volume and 16.6% in value for 2003-09. Powdered milk producers benefit from their ability to pass on rising imported-material costs to end consumers. The relatively low price elasticity of powdered milk is driven by the pestering power of its target group of infants and young children as well as its expanding consumer base. The General Statistics Office estimates the population of newborn to 4-year-old children will increase 3.6% during 2010-15, compared with 0.6% for 5- to 9-year-old children during the same period. We expect this sub-sector to continue to offer strong growth potential, posting CAGR of 11.25% in volume and 14.43% in value for 2010-13, as projected by Euromonitor. Chart 4: Powdered milk: Sales
30 25 '000 tonnes 20 15 10 5 0 2003 2006 2009 2010F 2011F 2012F 2013F Flavored pow der milk Pow der milk 4.3 4.3 5.7 7.5 8.1 8.7 8.3 5.7 9.3 9.9 9.5 10.8 12.4 14.3

Chart 5: Powdered milk: CAGR in volume and value

18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2003-2009 Volume grow th
Source: Euromonitor, Mekong Securities

16.56% 14.43% 10.67% 11.25%

2010-2013 Value grow th

Source: Euromonitor, Mekong Securities

SECTOR VIEW

Developing A Taste For Dairy

Condensed milk
Despite its low nutritional content, condensed milk ranks second in terms of market share due to its popularity among Vietnamese consumers. Before the increase in disposable income, its low price point made it the nations favourite dairy product. The sectors annual growth declined to a modest level of 4.2% in volume and 8.75% in value during 2004-09 as consumers disposable income increased and they began switching to more nutritionally rich dairy products. We expect condensed milk to witness a slightly higher CAGR of 6.25% in volume and 8.75% in value in the next four years as it is still preferred in rural areas, which account for more than 70% of the population. Chart 6: Condensed milk: Sales
180 160 140 million litres 120 100 80 60 40 20 0 2003 2006 2009 2010F 2011F 2012F 2013F Condensed milk
Source: Euromonitor, Mekong Securities

Chart 7: Condensed milk: CAGR in volume and value

10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00%

121.7 95.1 106

128.4

136.1

145

155.1

8.75%

8.75%

6.25% 4.20%

2003-2009 Volume grow th

Source: Euromonitor, Mekong Securities

2010-2013 Value grow th

Yoghurt
Yoghurt accounts for 15% of the dairy markets value. Its target market includes healthconscious consumers. The sub-sectors value grew at a rate of 12.6% in 2009 as consumers were relatively insensitive to price rises. Spoonable yoghurt recorded a CAGR of 12.6% in 2003-09, outperforming drinking yoghurt, which saw an estimated annual gain of 7.3% in the same period. The presence of a wider variation of yoghurt products has increased their popularity. We expect drinking yoghurt to achieve higher growth rates than spoonable yoghurt due to changing consumer tastes. Volume CAGR for drinking yoghurt is projected to rise to 9.98% in 2010-13, while that of spoonable yoghurt is expected to decline to 10.4%. In terms of value, CAGR for the yoghurt sector should remain as high as 11.8%.

SECTOR VIEW

Developing A Taste For Dairy

Chart 8: Yoghurt: CAGR in volume and value

18.00% 16.00% 14.00% 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2004 2005 2006 2007 2008 2009 2010F 2011F 2012F 2013F Spoonable yoghurt

Yoghurt

Drinking yoghurt

Source: Euromonitor, Mekong Securities

Dependent on imports to meet demand

There were 72 dairy-processing companies in Vietnam in 2009. Total annual capacity for the sector currently stands at 796.2 tins of condensed milk, 101.5 thousand tonnes of whole milk powder, 778.3 million litres of UHT milk and 150.8 million litres of yoghurt. Despite recent capacity improvements, domestic supply can only meet approximately 20-30% of the demand nationwide. This figure is significantly lower than the official target rate of 40% in 2010 as stated in the Ministry of Industry and Trades Decision No. 167/2001/QD-TTg. At the end of 2009, the ministry decided to postpone its target to 2025. Chart 9: Government planning (2010-25)
1600 1400 1200 '000 tonnes 1000 800 600 400 550 200 0 2010 2015 Raw Milk Supply 2020 2025 Self-efficiency rate 350 934.5 22 1344.7 34 36 40 45 40 35 30 25 %
6

20 15 10 5 0

Source: Ministry of Industry and Trade, Mekong Securities

SECTOR VIEW

Developing A Taste For Dairy

The significant imbalance between supply and demand reflects issues associated with Vietnams herd development. The domestic herd is low in productivity, with the average milk per cow amounting around 1,700kg per year, significantly behind international standards. In comparison, the average is 6,200 kg for the EU, 8,400 kg in the US and 3,300 kg in New Zealand. Although the size of the domestic herd has increased from 113,200 heads in 2006 to 120,000 heads in 2009, dairy farmers find it difficult to compete with foreign suppliers due to rising animal-feed prices, high production and collection costs, and geographical and cultural constraints. The poor herd quality means Vietnam is dependent on foreign suppliers for milk ingredients. Milk and dairy products ranked fifth in terms of import turnover of agricommodities in 2008 in Vietnam. Every year, Vietnam imports approximately USD545 million worth of milk-related products, accounting for 5.8% of the total import turnover of agro-forestry-fishery products and materials. Chart 10: Milk and dairy product import turnover
600 500 Million USD 400 300 200 100 2003 2004 2005 2006 2007 2008 Nov09
China, 0.60% New Zealand, 22.35%

Chart 11: Import market share for dairy products (Jan-Nov 2009)

533.9 462.2 442.0

Others, 37.05% Holland, 28.10%

278.9 170.8 201.2

302.7

U.S., 11.90%

Source: GSO, Mekong Securities

Source: AGROINFO, Mekong Securities

Holland and the US maintain high growth rates in terms of turnover and market share among countries exporting milk and milk products to Vietnam, according to AGROINFO. Imported milk and milk products from Holland totalled USD136.3 million over the first 11 months of 2009, up more than 25% compared with the same period the previous year and accounting for 28.1% of the total quantity of imported milk in Vietnam. Vietnams turnover of milk imports from the US totalled USD57.6 million, up more than 50% over the same period a year earlier, equivalent to a share of 11.9%. New Zealand ranked second in terms of import turnover, reaching USD108.4 million. New Zealands market share decreased to 22.4% in 2009 from 29.8% the previous year. The share of Chinese milk products made up only 0.6% of the total turnover over the first 11 months of 2009 due to the melamine scandal.

Prices on the rise

Vietnams dairy products are among the most expensive in the world. The average cost of milk in Vietnam is USD1.40/litre, compared with USD1.30/litre in New Zealand and the Philippines, USD1.10-1.20/litre in Australia and China, and USD0.90/litre in the UK, Hungary and Brazil, according to Euromonitor.

SECTOR VIEW

Developing A Taste For Dairy

Chart 12: Retail milk prices in various countries (2008) (USD/litre)

Brazil Mexico USA UK Germany Russia Poland Hungary Czech Republic New Zealand Australia VietNam Philippines India China -0.9 0.5 1 .4 0.9 0.8 0.7 0.8 0.9 0.6 1 .3 1 .2 1 .4 1 .3 0.5 1 .1 0.5 1 .0 1 .5

Source: Euromonitor

Although prices of material milk worldwide dropped at the end of 2008, prices of finished milk products in Vietnam were on the rise, without showing any signs of a decrease. This indicates the low price elasticity of demand for milk products in Vietnam and relatively high brand loyalty. We expect further rises in prices of dairy products owing to increasing costs of imported milk powder as well as higher fuel and transportation costs. Chart 13: Whole milk powder: Global price (USD/metric tonne)
6,000 5,000 4,000 3,000 2,000 1,000 Dec-06
Source: USDA

Jun-07 Dec-07

Jun-08

Dec-08 Jun-09

Dec-09

AgroMonitor, a Vietnam-based agriculture research company, estimates Vietnamese milk prices to grow 12-17% yoy in 2010. It attributes the rise to: 1) rising global milk prices as the world economy recovers; 2) higher production costs; 3) rising sugar prices; 4) continued supply-demand disequilibrium, leading to further hikes in milk prices; and 5) fluctuating exchange rates having a negative effect on imported dairy products.

Growing competition
Although there are a large number of dairy brands in Vietnam, the market is dominated by Vinamilk, the leading domestic company, and Dutch Lady Vietnam, a subsidiary of FrieslandCampina. Each makes up around 37-39% of the total market. The level of competitiveness varies across sub-sectors. While players are moving out of the condensed milk sub-sector, other sub-sectors are seeing increasing interest from local and multinational brands, including Nestle, Abbott, Mead Johnson, Long Thanh and Moc Chau milk.
SECTOR VIEW

Developing A Taste For Dairy

Drinking milk
Dutch Lady and Vinamilk are the leading players because both companies are pioneers in various drinking milk products, such as flavoured and UHT milk drinks. The two rivals benefit from their aggressive marketing and promotional campaigns as well as rapidly expanding distribution channels. However, national brands such as Long Thanh and Moc Chau milk pose a growing threat as consumers, especially in rural areas, could switch to more affordable brands if Vinamilk and Dutch Ladys products become too expensive. Chart 14: Liquid milk: Market share (2007)

Others, 28% Dutch Lady, 37%

Vinamilk , 35%

Source: Euromonitor, Mekong Securities

Powdered milk
The main players in the powdered milk sub-sector include domestic player Vinamilk and foreign brands such as Dutch Lady, Abbott, Mead Johnson and Dumex. Market shares range from 10-20%, reflecting the high level of competition within the sector and the lack of a clear dominant player. Chart 15: Powdered milk: Market share (2007)

Other , 23% Nestle, 10% Mead Johnson, 15%

Abbott, 18% Dutch Lady, 20% Vinamilk, 14%

Source: Euromonitor, Mekong Securities

Yoghurt
Vinamilk holds the lions share of the yoghurt sub-sector, with a 55.8% market share. Of this share of the market, Vinamilk holds a 72.1% share for spoonable yoghurt and 8.5% for drinking yoghurt. Its dominant position in this niche market is a consequence of sizeable advertising, regular introduction of new products and a substantial R&D budget.

SECTOR VIEW

Developing A Taste For Dairy

Chart 16: Yoghurt: Market share (2007)

Others, 25% Anco, 7% Dutch Lady, 12% Vinamilk, 56%

Source: Euromonitor, Mekong Securities

Condensed milk
Vinamilk and Dutch Lady, which have well-established brands, dominate this segment. The segment typically targets low-income consumers who spend a large portion of their disposable income on food and are therefore generally quite price sensitive. Pursuant to changes in consumer preference towards liquid milk and yoghurt, we expect condensed milk consumption to stabilise. Chart 17: Condensed milk: Market share (2007)
Dutch Lady, 21% Vinamilk, 79%

Source: Euromonitor, Mekong Securities

Constraints for new entrants and small players

We believe multinational and domestic players will face tougher competition due to rising consumer power and a broader range of substitutes. As milk consumers become wealthier and more health conscious, dairy producers are under pressure to improve their product mix to cater to more sophisticated customer needs. We expect limited changes in the competitive structure within each sub-sector due to rising competition among existing players and relatively high barriers to entry. Over the years, key players such as Vinamilk and Dutch Lady have invested heavily in expanding their distribution networks nationwide. As a result, new entrants and small players with limited financial resources face mounting difficulties in maintaining market share. Table 1: Key players distribution points and outlets in Vietnam Vinamilk Dutch Lady Nutifood Distribution points 250 150 121 Outlets 140,000 100,000 60,000

Source: Vinamilk, Mekong Securities

SECTOR VIEW

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Developing A Taste For Dairy

Aggressive advertising and promotional campaigns by major dairy producers have raised brand awareness among milk consumers. This, coupled with consumers reluctance to switch to new brands, is a major constraint facing newer players. Key players with long track records in Vietnam have gained a better understanding of the shopping habits and tastes of Vietnamese consumers. We believe it would take time for new entrants to build brand awareness and understand local consumers.

Development strategy
As stated in the National Dairy Development Plan, the government aims to increase domestic production to satisfy 36% of demand by 2020 and 40% by 2025.

Dairy herd development

In 2009, raw milk production from the domestic herd met only around 20-30% of total dairy consumption. In Vietnam, only 5% of the total number of dairy cattle is raised in farms of 100-200 heads; the rest is raised by individual households. By the end of 2009, there were 19,639 dairy farmers with an average of 5.3 cows per farm, indicative of quality issues within Vietnams domestic herd. Chart 18: Milk output vs. population (200615)
600 500 400 300 200 100 0 2006 2007 2008 2009 2010 2015 Dairy cattle ('000) Population (m people) 96 94 92 90 88 86 84 82 80 78 Milk output ('000 tonnes)

Source: Ministry of Agriculture & Rural Development, Mekong Securities

The government plans to increase the domestic herd to 200,000 heads in 2010, 350,000 in 2015 and 500,000 in 2020. To make this plan feasible, the government encourages institutions and individuals to focus on crossbreeding dairy cows for better quality as well as offering interest-free loans and subsidies to farmers. Given the actual number of 120,000 heads in 2009, we believe the plan may prove to be too ambitious. Moreover, the development of the domestic dairy herd will face difficulties associated with price increases for cattle feed, higher production costs, unfavourable environmental conditions and relatively poor technology. We expect the Vietnamese dairy industry to remain heavily dependant on imported sources until at least 2020.

Trade policy in the context of WTO integration

Vietnam protects its indigenous dairy industry by tariffs on imports and duty quotas. According to a study by the International Research Centre on the level of trade protection in Vietnam, the dairy sector enjoys considerable benefits from governmental interventions with a nominal rate of protection (NRP) calculated at 22.6% (Sullivan, 2002). Exporting countries to Vietnam are grouped in two categories:
SECTOR VIEW

11

Developing A Taste For Dairy

WTO members for whom Vietnam applies most-favoured nation (MFN) tariffs. Tariffs on manufactured dairy products range between 10% and 30% on raw material and pre-manufactured products, which include skim and whole milk powder. ASEAN Free Trade Area (AFTA) members, for whom Common Effective Preferential Tariffs (CEPT) apply. CEPT tariffs for skim and whole milk powders are currently subject to 5% tariffs.

Concerns
As milk consumers become wealthier and more health conscious, dairy producers are under pressure to improve their product mix to cater to consumers needs. Recent surveys show an increasing number of consumers pay attention to product quality and prices. Consumers are willing to pay higher prices for dairy products from well-known international brands with greater perceived nutritional benefits. This creates pressure on local companies to improve the quality of their products. Quality control is one of the most important issues for dairy producers. In 2008, the Vietnamese milk industry was adversely affected by the melamine scandals in China. Similar scandals could further damage the national dairy industry if consumers were to shift to more trusted international brands. Dairy producers are under great pressure to reduce their prices in the medium to long term, considering that Vietnams dairy is among the most expensive in the world. Moreover, a heavy dependence on foreign markets for input materials increases the risk of margin compression as prices of imported dairy products rise. A lower profit margin is also associated with the costly advertising and marketing campaigns initiated by various dairy producers.

SECTOR VIEW

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Developing A Taste For Dairy

Trade idea: BUY Vinamilk

We initiate coverage on Vinamilk (HOSE:VNM), Vietnams largest listed dairy producer, with a BUY rating, given robust demand for dairy products, coupled with the companys solid market position and capacity expansion. Our blended valuation approach yields a price target of VND104,000 (USD5.45), a 20.2% premium to the closing price of VND86,500 (USD4.53). The price target offers potential total shareholder return of 23.1% over the next 12 months. Our price target implies 15.5x FY10E PER and 15.7x FY11E PER, which is slightly higher than that of other domestic F&B companies, but is still below regional dairy peers. We believe Vinamilk will remain the premier growth company in the Vietnamese dairy sector. We expect it to weather the increasingly competitive condition in the industry, and enjoy impressive growth during the next two years in Vietnams largely underpenetrated dairy market. The companys skilled management, unparalleled brand recognition, extensive distribution channels, financial strength and superior product offerings should enable it to maintain its strong competitive position. The company is building a new milk and health drink factory that will offer additional revenue streams beginning 2012. Vinamilks unrivalled distribution network spans Vietnam and forms a sizeable barrier for competitors. In our opinion, Vinamilk offers an attractive buy-and-hold investment opportunity for the long term, with robust annual growth, impressive distribution, diversified products and significant market share.

Table 2: Listed food and beverage companies

Ticker HOSE:VNM HOSE:KDC HOSE:MPC HOSE:SBT HOSE:VHC HOSE:LSS HOSE:ANV KEY PLAYERS VINAMILK KINHDO CORP MINH PHU SEAFOOD TAY NINH SUGAR VINH HOAN CORP LAM SON SUGAR NAM VIET CORP Price (VND) 86,500 66,000 33,000 13,600 44,100 41,600 21,800 Market Cap (VNDbn) 30,539 5,293 2,310 1,921 1,558 1,228 1,430 6,326 Index Weight (%) 6.92 1.22 0.52 0.14 0.35 0.28 0.33 1.39 Avg Vol 30D (shares) 222,407 329,835 88,241 793,763 13,352 161,060 594,728 314,769 ROE (%) 42.53 20.85 22.98 13.85 35.88 24.78 -11.59 21.3 ROA (%) 32.80 13.23 10.55 12.57 13.77 16.95 -7.29 13.2 P/E (times) 7.20 9.79 9.82 7.55 8.56 7.83 8.46 P/B (times) 3.97 1.96 2.15 0.96 2.50 1.77 0.78 2.01 Foreign Ownership 46.17% 25.30% 13.60% 7.38% 23.24% 9.45% 6.34% 18.80%

Average 43,800 Source: Bloomberg, Mekong Securities

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Developing A Taste For Dairy

Notes

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