Some stocks to watch on August 29th.

Neutral recommendation for VNM stock.

Vietnam Dairy Products Joint Stock Company (VNM) improved its gross profit margin to 42% in Q2 2025. The consolidated gross profit margin in Q2 2025 reached 42% – 170 basis points higher than Q1 2025 and 40bps lower than the same period last year. This improvement in the gross profit margin stems from a recovery in revenue, particularly domestic revenue of the parent company, compared to Q1 2025.

Bao Viet Securities (BVSC) believes that the gross profit margin in the last two quarters of 2025 will remain flat or improve slightly compared to Q2/2025. The gross profit margin in 2026F is expected to improve slightly to 41.8% thanks to favorable WMP & SMP selling price trends in the near future. A clearer profit recovery is projected for 2026F.

In 2026F, BVSC projects net revenue to reach VND 65,924 billion (+4.7% year-on-year) and after-tax profit attributable to minority shareholders to reach VND 9,640 billion (+5.2% year-on-year). The recovery in after-tax profit stems from the low base in 2025F, combined with expectations of improved gross profit margins amidst favorable raw milk powder prices for VNM.

Using the DCF method, BVSC values VNM at VND 68,000 per share by mid-2026F and recommends a NEUTRAL rating for VNM shares. At this target price, VNM's P/E ratios at the end of 2025F and 2026F are 15.5x and 14.7x respectively, which are relatively consistent with the average P/E ratio over the past two years.

Buy recommendation for DBC stock.

According to BIDV Securities Company (BSC), Dabaco Group Joint Stock Company (DBC) recorded net revenue and after-tax profit - minority shareholders of VND 3,820 billion (up 20% year-on-year) and VND 507 billion (up 249% year-on-year), respectively, in the second quarter of 2025.

BSC assesses DBC's Q2/2025 business results as higher than the 37% increase expected in BSC's previous baseline forecast report, mainly due to the estimated cost of production of VND 49,000 – 50,000/kg, which is 8% lower than forecast, as the company's ability to protect its herd against the complex disease situation in Q2/2025 is much better than BSC expected.

Therefore, BSC recommends a buy rating for DBC shares with a target price of VND 31,700 per share.

► Stock market outlook August 29th: VN-Index may retest the 1,694 point resistance level.

Source: https://money.vtv.vn/mot-so-co-phieu-can-quan-tam-ngay-29-8-10911661.htm