VHC - US market to be the recovery momentum
Pangasius exports to the US, the company’s largest market, has showed good signs of recovery in both ASP and volume, better than other major markets. We expect the US to be the major growth driver of the pangasius segment for the rest of 2020 and 2021. The “new normal state” and the public concerns on unpredicted health problems continue to boost growth of value-added pangasius as well as collagen. We are more optimistic about the company's ability to stabilize pangasius ASP in 2021 in the face of global economic difficulties. Considering all these factors, we revise up the target price for VHC by 21% from VND 39,700/share to VND 48,300/share. Together with a cash dividend in the next 12 months of VND 1,500/share, the total return is 16%, based on the closing price VND 42,950/share as of Sep 22, 2020. Thus, we have an ACCUMULATE recommendation for 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.
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