PAN Group (HOSE: PAN) | Initiation Report, BUY - 1Y Upside +31.4%

Company Information

PAN Corporation (PAN) is one of the leading companies in agriculture and consumer food sector in Vietnam. Through continuous restructuring and expansion efforts, PAN has successfully built an integrated agriculture-to-food ecosystem, comprising key member companies across the value chain. These include Vinaseed (NSC) in agricultural seeds, Vietnam Fumigation Company (VFC) in agrochemicals and fumigation, Fimex (FMC) in shrimp exports, Aquatex Ben Tre (ABT) in pangasius and clam exports, Bibica (BBC) in confectionery, and Lafooco (LAF) in nut processing.

Beyond its M&A-driven growth strategy, PAN places strong emphasis on developing high value-added agricultural and food products, aiming to meet rising domestic consumption demand while strengthening its position in export markets.  

Financial Performance

In the period of 2019-2024, PAN's revenue and net profit after tax (NPAT) grew at a compound annual growth rate (CAGR) of 15.7% and 20.9%, respectively. For 2025, PAN management set conservative targets with revenue of VND 17,256bn and NPAT of VND 1,210bn, corresponding to increases of 7.0% and 4.0% YoY. In Q1 2025, PAN reported net revenue of VND 4,119bn, up 19% YoY, driven by strong growth from FMC (+36.2%) as the company ramped up shipments to the U.S. market before the new import tariffs takes effect in July. PAN’s consolidated NPAT reached VND 194bn, up 20.5% YoY, driven by NSC (+3.5% YoY) and VFG (+21.8% YoY), while FMC’s NPAT declined by 13% to VND 61bn despite revenue increase due to lower GPM margins in the U.S. compared to other markets.  

Investment Rationales

o       PAN holds a synergistic portfolio of agriculture and food businesses that collectively enhance growth and value creation.

o       Benefiting from increasingly strict food traceability requirements.

o       Owns strategic assets that are significantly undervalue. 

o       Strong financial health and attractive valuation.

Valuation and Recommendation

We apply the P/E, P/B, and SOTP methods to evaluate PAN share price. We initiate a BUY call with a 12M Target Price of VND 35,000/share, representing an upside potential of 31.4% compared to the closing price of VND 26,650/share on Jun 18, 2025. Our valuation model derives a 3Y Target Price of VND 49,600/share, an upside of 86.3%.