Report

VHC – Gradual recovery

  • In H1 2023, VHC earned VND 4,970 Bn revenue (USD 211 Mn) and VND 631 Bn NPAT-MI (USD 27 Mn), down 35% and 53% YoY. Q2 2023 had better results: revenue at VND 2,723 Bn (USD 116 Mn), down 35% YoY but up 23% QoQ, and NPAT-MI of VND 412 Bn (USD 17 Mn), down 48% YoY but up 88% QoQ.
  • July sales showed a slight improvement from the previous month. We anticipate a stronger recovery in the coming months as importing countries enter their festive seasons.
  •  We forecast net revenue and NPAT to reach VND 10.0 Tn (or USD 425 Mn, -25% YoY) and VND 1.3 Tn (or USD 56 Mn, -32% YoY) in FY2023. 2023 EPS will be VND 7,275 (-32% YoY).
  • VHC's challenges are behind us. Q2/2023 results exceeded expectations, and seafood demand recovery apparent in H2/2023. We're revising VHC's target price to VND 79,000 per share, implying an expected return of 12%.

 

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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