Analyst Pin-board FMC – September revenue recovered strongly as expected
- We revise up our target price by 17% from the latest valuation to VND 55,000/share as we expect high shrimp demand and two new factories coming online in FY22 to accelerate NPAT growth of 26%/30% in FY22-FY23. With an expected cash dividend in the next 12 months of VND 2,000/share, the total return will reach 15% based on the closing price of October 14th, 2021. We recommend to ACCUMULATE.
- FMC’s export revenue rose 21% YoY in September driven by full capacity recovery. However, due to a significant drop in August revenue (-56% YoY), 3Q-FY21 export revenue declined 21% YoY to reach USD 56 Mn. In 3Q-FY21, we forecast revenue and NPAT to be VND 1,280 Bn (or USD 56 Mn, -21% YoY) and VND 58 Bn (or USD 2.5 Mn, -17% YoY), respectively.
- For 2021, we forecast revenue and NPAT to reach VND 4,980 Bn (or USD 217 Mn, +13% YoY) and VND 256 Bn (or USD 11 Mn, +12% YoY). The 2021 EPS will be VND 4,270 and 2021 forward PER will be 11.7x.
- CP Vietnam - the largest animal feed company in Vietnam bought 16.56% of FMC’s shares, of which 9,18% stake was transferred from PAN Group. CP's participation is expected to fulfill FMC's value chain in the long run
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.