Viet Dragon Securities - ANV – Harness the opportunities arising from Chinas reopening

Report

Viet Dragon Securities

Loan Nguyen

ANV – Harness the opportunities arising from China's reopening

Amidst the bleak prospects of the export industry, ANV, a representative stock for the investment theme of China's reopening, is exhibiting better performance than the industry average due to the resurgence of orders in the Chinese market - which was once the main market of the company, but suffered a sharp decline during the three years of the COVID pandemic. In the first 2 months of 2023, ANV's export volume remained stable at the same level as the same period last year, while the selling price decreased by 10% YoY and 30% from the peak of Q2-FY22.
Notwithstanding the benefits of falling transportation costs and stable export volume, which offset rising financial costs and plummeting selling prices. This circumstance poses a challenge to surpass the company's record-level 2022 profit.
While a more thorough assessment is necessary to update ANV's forecast and valuation, we hold the view that ANV is better suited for short-term trading at a discounted stock price, rather than long-term holding given the uncertainties surrounding the outlook of the export industry and ANV's business results. ANV is currently trading at a P/E of 5.8x, compared to 6.2x in the period of 2018-2019 – a period of the pangasius industry's bull cycle similar to the current situation.

17/03/2023 7 EN

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Viet Dragon Securities

Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.

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Analysts

Loan Nguyen

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ANV – Harness the opportunities arising from China's reopening

AWAITING THE BREAKOUT

Vietnam chilled-fresh meat market – Significant long-term potential but difficult to realize in

The decline has not come to a halt

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