In the third quarter of 2024, Vinh Hoan's after-tax profit reached 341 billion VND, an increase of 70% over the same period, which is also the highest profit in 5 quarters of Vinh Hoan.
Breakthrough in Q3/2024, Vinh Hoan Seafood (VHC) reported a 70% increase in after-tax profit
Vinh Hoan Joint Stock Company (Vinh Hoan Seafood, stock code VHC - HoSE) has just announced its consolidated financial report for the third quarter of 2024 with net revenue reaching VND 3,278 billion, up 21.5% over the same period last year. Gross profit in the period increased by 103%, reaching VND 578.6 billion. Vinh Hoan Seafood's profit margin improved sharply from 11% to 18%.
As a result, Vinh Hoan Seafood recorded a profit after tax of VND341 billion, up 70% over the same period last year, which is also the highest profit in the company's 5 quarters. Of which, the parent company's profit after tax reached VND320.63 billion, up 68.2% over the same period.
Accumulated in the first 9 months of 2024, Vinh Hoan Seafood's net revenue reached VND 9,329 billion, up 22% over the same period in 2023. However, profit after tax decreased slightly, reaching VND 870.2 billion, due to the negative results in the first half of the year, the first half of the year had negative growth. The parent company's profit after tax alone reached VND 808.32 billion, down 4.8%.
In terms of structure, revenue from semi-finished products and goods accounted for 82.64% of Vinh Hoan Seafood's total revenue in the first 9 months of the year, reaching VND7,740 billion, up 24.6% over the same period. Followed by revenue from by-products, accounting for 15%, reaching VND1,408 billion, up 6%. The rest was revenue from selling raw materials (VND98.7 billion) and revenue from providing services (VND119 billion).
This year, Vinh Hoan Seafood targets consolidated revenue of VND10,700 (low scenario) - VND11,500 billion (more positive scenario) and consolidated after-tax profit of VND800 - VND1,000 billion.
Thus, in terms of parent company profits, with the low scenario, Vinh Hoan slightly exceeded the profit plan. In the more positive plan, Vinh Hoan achieved 81% of the annual profit target.
Thus, in terms of parent company profits, with the low scenario, Vinh Hoan slightly exceeded the profit plan. In the more positive plan, Vinh Hoan achieved 81% of the annual profit target.
Vinh Hoan still has a "headache" about investing in stocks because it is losing money.
Regarding the financial situation, as of the end of September, Vinh Hoan's total assets reached VND12,522 billion, up 5% compared to the beginning of the year. Inventory decreased by 11% to VND3,355 billion.
The company's cash, cash equivalents, and term deposits are approximately VND2,767 billion. In the first 9 months of this year, the company received more than VND81 billion in interest on deposits.
Outstanding financial loans stood at VND2,243 billion, entirely short-term loans from banks. In 9 months, Vinh Hoan borrowed an additional VND7,706 billion and paid off the principal of VND7,753 billion.
Notably, as in previous quarters, Vinh Hoan's securities investment business is still suffering losses. Vinh Hoan is investing nearly VND162 billion in securities business, down 11.6% compared to the beginning of the year.
However, this seafood company is having to set aside nearly VND39 billion in provisions for devaluation of trading securities, up 40% compared to the beginning of the year. Of which, most of the provision is used for investment in DXS shares of Dat Xanh Real Estate Services Joint Stock Company, up to VND32 billion, equal to 54% of the original price.
Vinh Hoan once shared that revenue increased but profits were not much, because of the huge cost pressure. Vinh Hoan mainly exports to the US (accounting for 50% of output).
Recently, Tien Phong Securities (TPS) has forecasted that this year's net revenue of Vinh Hoan Seafood is estimated at VND 12,349 billion and the expected after-tax profit is VND 1,196 billion, up 23% and 30% respectively compared to 2024. Thereby, the company is expected to exceed 7% of the revenue target and 13% of the profit target for the whole year.
Data from market research firm Agromonitor shows that although the current average selling price of pangasius is still far from the peak in 2022 of more than 5 USD/kg, the average monthly consumption output of Vinh Hoan Seafood to the US market is now only 10% lower than in 2022. Vinh Hoan Seafood is currently the largest Vietnamese enterprise exporting frozen pangasius fillets to the US, accounting for 47% of the market share.
According to Tien Phong Securities, inventories in the US are low as the year-end holiday season approaches. At the same time, purchasing power in the Chinese market is expected to increase after the Chinese government launched a large economic stimulus package. These factors are expected to boost Vinh Hoan Seafood's export activities in the remaining quarter of the year.
Vinh Hoan once shared that revenue increased but profits were not much, because of the huge cost pressure. Vinh Hoan mainly exports to the US (accounting for 50% of output).
Forecasting for the last months of 2024, Tien Phong Securities believes that pangasius exports will continue to maintain growth momentum, selling prices may increase due to the festive season, low base level in 2023, and pangasius prices will gradually increase following other types of fish.
In addition, Tien Phong Securities recorded that raw fish prices have started to increase again as inventory levels have decreased. This is mainly due to pangasius export output increasing faster than harvest output, especially during the rainy season, causing harvest output to decrease. Raw fish inventories are expected to continue to decrease in the fourth quarter, creating upward pressure on prices until early November before export output gradually decreases.
For Vinh Hoan, gross profit margin is expected to be less affected due to the increase in average selling price thanks to higher selling price in the US market, which partly supports the increase in raw fish price...
Source: https://danviet.vn/quy-iii-but-pha-thuy-san-vinh-hoan-bao-lai-cao-nhat-5-quy-2024102614294352.htm
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