VHC – From boom to gloom
- In 11M-2022, VHC recorded an accumulated revenue of VND 13 Tn (or USD 541 Mn, +57% YoY), resulted mainly from exporting to the US market. However, the stellar growth is mostly contributed by 1H-2022 results while 2H-2022 performance is showing a downswing
- Weak demand on frozen fillet products can remain until at least 1H-2022, especially in the US market. Moreover, the reopening of China also provides little ability to pivot the 2023 profit slump, because of the Chinese market’s small contribution into the total revenue
- Using FCFF and SOTP methods, we arrive at the target price of VND71,000/share, implying an expected return of 3% on Jan 06th, 2023 and a NEUTRAL recommendation. Our target price reflects a 2023 P/E at 8.3x, which equates to the 5-year average. We recommend that investors can wait for a more attractive price and can gradually accumulate when the pangasius industry shows signs of returning to a new uptrend.
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.
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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