·         FMC’s shrimp export revenue plummeted 56% YoY in August due to low operating capacity amid strict lockdown in the South of Vietnam. However, FMC has no longer applied “stay-at-factory” rule since end-August and is expected to reach full capacity recovery from mid-September. Moreover, we expect that the increase in selling prices and the decrease in materials prices will improve gross margin in 2H 2021 (+370 bps YoY to reach 13.7%).

·         In 3Q 2021, we forecast revenue and NPAT to be VND 1,363 Bn (or USD 59 Mn, -16% YoY) and VND 61 Bn (or USD 2.7 Mn, -14% YoY), respectively. For 2021, we forecast revenue at VND 4,961 Bn (or USD 216 Mn, +12% YoY) and NPAT at VND 250 Bn (or USD 11 Mn, +11% YoY), respectively. Correspondent 2021 EPS will be VND 4,212 and 2021 forward PER will be 11.2x.

·         We revise up our target price by 16% from latest valuation to VND 47,000/share as we increase our 2021F-2022F NPAT-MI by 22% owing to positive shrimp demand and increasing selling prices, and a rollover of our TP to mid-2022. With an expected cash dividend in the next 12 months of VND 2,000/share, the total return will reach 10% based on the closing price of September 08^th, 2021. We recommend to ACCUMULATE