Report

Analyst Pin-board VHC – Lower-than-expected net profit resulting from a large inventory provision in Q3-FY22

  • In Q3-FY22, VHC delivered net revenue of VND 3,261 Bn (or USD 133 Mn, +46% YoY and -23% QoQ) and NPAT-MI of VND 450 Bn (or USD 18 Mn, + 76% YoY, -43% QoQ). While Q3 net revenue was in line with our forecast, NPAT-MI fell behind our expectations mainly because the company booked an inventory provision of VND 240 Bn (or USD 10 Mn). 
  • Accumulated 9M-FY22, revenue and NPAT were VND 10,755 Bn (or USD 439 Mn, +69% YoY) and VND 1,787 Bn (or USD 73 Mn, +176% YoY), fulfilling 83% and 111% of VHC’s 2022F guidance, respectively.
  • We are reviewing our target price due to lower-than-expected Q3/2022 results, albeit not by much. Moreover, we also revise earnings growth for FY2023 amid the global economic downturn and apply a higher discount rate. We see a potential downside revision of the target price, although more time is needed for a detailed assessment. Our previous target price was VND97,000/share

 

Underlying
Vinh Hoan

Vinh Hoan Corp. Vinh Hoan Corporation is a Vietnam-based seafood processing company. It manufactures and exports fresh and frozen pangasius fillets, as well as value-added products from pangasius. The Company's products also include other value added seafood products including those from barramundi, shrimps, scallop and others; the by-product from seafood processing such as fish oil, fin nuggets and belly nuggets and other products such as gelatin powder, collagen powder and rice. The Company is also involved in aquaculture activities, the manufacturing and trading of aquaculture feeds, veterinary medicine and fertilizer.

Provider
Viet Dragon Securities
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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