Analyst Pin-board FMC – 2021 preliminary results: Earnings beat the guidance
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· We maintain our target price of VND 61,000 and have an ACCUMULATE rating for FMC, implying an expected return of 19% on one-year investment horizon, based on the closing price on Jan 06th 2022. We think FMC will be suitable for investors looking to invest in a seafood company with profits that are less volatile compared to the industry and grow steadily year over year. · FMC announced its preliminary results for FY2021 with export revenue of USD 213 Mn (~VND 4,900 Bn, +12% YoY) and EBT of VND 280 Bn (+18% YoY). · Key drivers of FY2022-2023 earnings growth are: (1) favorable shrimp sector prospects driven by high demand and the US antidumping duty on Indian shrimp, (2) selling prices to grow faster than raw shrimp prices, (3) two new factories to start operating in 2022. We project revenue and NPAT to reach VND 5,698 Bn (or USD 248 Mn, +16% YoY) and VND 338 Bn (or USD 15 Mn, +28% YoY) in 2022. |
Sao Ta Foods Joint Stock Company is a Vietnam-based company active in the food processing industry. The Company is engaged in the processing, trading and export of seafood products, as well as the management of aquaculture farms to supply its own operations. Apart from processed shrimps and pangasius, it also manufactures other food products from garlic, ginger, fruit, sweet potatoes, lotus roots, lotus seeds, pumpkins, onion and others. It is also involved in the distribution of raw agricultural and aquatic materials, together with the import of machinery and supplies for food processing activities. In addition, the Company is engaged in real estate operations and hotel operations. During the year ended December 31, 2012, 97.68% of its total revenue came from export sales.
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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