- QNS released H1 2022 results with revenue and NPAT-MI of VND4tn (USD172mn; +9% YoY) and VND541bn (USD2.3mn; +4% YoY), fulfilling 46% and 43% of our respective forecasts. This earnings growth was mainly driven by the high-margin soy milk segment, which offset weakened profit from the sugar business that was primarily due to fierce competition from imported sugar. As a result, we see potential downside risk to our current projection, pending a fuller view.

- In H1 2022, soy milk revenue increased +12% YoY vs the 23% YoY spike in Q1 2022 as growth decelerated (+5% YoY). Moreover, soy milk PBT growth trailed the pace of revenue growth as soy milk GPM contracted 1.9 ppts YoY mainly due to higher input costs (i.e., soybeans).