Dabaco Vietnam (HOSE: DBC) | Initiation Report, BUY - FW2026 Upside +16.9%

Company Information

Dabaco Group JSC, originally established in 1996 as Bac Ninh Agricultural Products Company, grew quickly to become a Vietnam’s leading enterprises in the agri-food sectors.

DBC currently operates a modern network of feed mills, large-scale industrial livestock and poultry farms, and fully integrated food processing and distribution systems. Beyond its Food-Farm-Feed core, DBC strategically expanded into industrial park development, urban real estate, and logistics, supported by its sizable land bank thanks to strong local ties in Bac Ninh. Notable projects include Que Vo III Industrial Park and Tan Chi ICD Logistics Port.  

Financial Performance

In the period 2019–2024, DBC achieved a revenue CAGR of 13.6% and an NPAT CAGR of 20.3%. NPAT, though still growing steadily, has been widely fluctuated, arrived at VND 5bn in 2022 and VND 25bn in 2023, as surging animal feed costs compressed the overall gross profit margin (GPM) to 8.3% and 10%. In H1 2025, DBC continued to witness strong performance thanks to pork prices peaking at VND 80,000/kg. H1 2025 revenue arrived at VND 12,537bn (+7.3% YoY), of which external revenue contributed VND 7,773bn (+20.7% YoY) while NPAT came in at VND 1,007bn in H1 2025, up 4.6x YoY, already surpassing the company's full-year profit targets of VND 1,007bn.  

Investment Rationales

DBC is the industry leader in the livestock sector, with the industry and company's capacity are both poised for sustainable long-term growth:

o   Vietnam's pig farming industry enters a new phase.

o   DBC is agressively expanding pig farming capacity, targeting ~80,000 sows and ~1.8mn pigs annually by 2028 to secure long-term suppy. 

o   DBC secures a solid competitive business model with lower pig farming cost.

o   DBC's valuation appears attractive at curent share price.

Valuation and Recommendation

To value DBC, we apply P/E multiples, EV/EBITDA and a DCF approach, and initiate coverage with a BUY recommendation and a FW2026 Target price of VND 31,800/share (FW2025 P/E of 6.7x and FW2026 P/E of 9.2x), representing a potential upside of 16.9% from the closing price of VND 27,200/share on September 26, 2025.