Report

VHC – Brighter prospects for 2H 2023

  • VHC reported weak Q1 2023 results, with revenues of VND2.2tn (USD94mn), a YoY decrease of 32%.  Consequently, NPAT-MI plunged 60% YoY in Q1 2023 to VND219bn (USD9mn).
  • We anticipate that VHC's profit growth recovery will materialize in the latter half of 2023: two factors: (1) the US market to recover; (2) orders to recover from the Chinese market after the re-opening. Overall, in FY2023, we forecast net revenue and NPAT to reach VND10.6Tn (or USD452Mn, -20% YoY) and VND1.3Tn (or USD56Mn, -34% YoY). 2023 EPS will be VND 7,134 (-34% YoY).
  • Using a 50:50 valuation mix of FCFF and SoTP methods, we arrive at a fair value of VND57,500, implying an expected return of +1% including a cash dividend yield of 4%. We have a NEUTRAL recommendation for this stock. 

 

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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