VHC - Pangasius export prices encounter low buying power; collagen demand stays strong
Pangasius export prices in the coming months are likely to stay at the current low level as consumer buying power may be eroded due to the economic crisis. This turns out to be an accelerator for export volume. Additionally, the rising demand for collagen-gelatin, the most profitable product, will help curb the downturn of the overall profit margin. Furthermore, two new competitors in the US market possibly pose a minor threat to the company. Considering all these factors, we revise up our 1-year target price by 26% to VND 40,000/share. With an expected cash dividend of VND 1,500/share, the total return is 12%, compared to the closing price as of June 5th, 2020. We recommend to ACCUMULATE this stock.
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.
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.