QNS [MARKET PERFORM -7.6%] - Strong stock rally not backed by structural improvements - Update
  • 2020-08-28T16:18:12
  • Company Research
We downgrade QNS from OUTPERFORM to MARKET PERFORM following a 60% share price rally in the last three months. In our view, QNS’s ineffective capital allocation that leans toward the low-margin and volatile sugar business remains a key hurdle to a further valuation re-rating despite its No.1 position in Vietnam’s soymilk market and compelling projected FCF/EV yields of 11%-18% during 2020F-2022F.