VNM - BUY - A safe haven - Initiation
Investors appear to recognize the competitive advantages and growth opportunities of Vinamilk. The company has a good brandname, economy of scales, an extensive distribution network, and expanding production capacity to meet growing demand. Given the lack of viable alternatives in the Vietnamese stock market, we believe it will remain a safe haven for investors despite its relatively high PER. We initiate with a Buy recommendation and a target price of VND106,000.