Viet Dragon Securities - FMC – A Promising Long-Term Investment Option for 2023

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Viet Dragon Securities

Loan Nguyen

FMC – A Promising Long-Term Investment Option for 2023

In Q1-FY23, the accumulated export revenue amounted to USD43.2 million, indicating a 26% decline year-over-year, which was primarily attributable to the decrease in shrimp exports. Despite the significant drop in sales, the estimated PBT for this quarter was impressive, amounting to VND50 billion, which represents an 11% increase year-over-year.
The net sales guidance for FY2023 has been set at VND5,900 billion, indicating a year-over-year increase of 3.5%. Given by gross margin expansion, the PBT guidance for FY23 is VND400 billion, reflecting a year-over-year growth of 22%. Overall, we find this plan to be reasonably feasible, contingent upon the recovery of export prospects in the latter half of 2023, in conjunction with the implementation of the business's robust profit margin improvement strategy.
We are upholding our target price of VND45,000/share, which suggests an anticipated return of 18%, including a 5% cash dividend yield, due to the stock's strong performance in recent times. With the most challenging phase for FMC's exports seemingly behind us, we deem this stock to be a viable option for investors seeking a long-term investment opportunity. At the targeted price, the stock's PE ratio for 2023 is 7.3x, with a corresponding EPS of VND5,461 per share.

12/04/2023 6 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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FMC – A Promising Long-Term Investment Option for 2023

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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