Nam Viet Seafood plans to double its charter capital to VND2,666.7 billion, with second quarter profit expected to skyrocket.

Nam Viet Seafood (ANV) issues bonus shares at a ratio of 1:1, doubling its capital.

Nam Viet Seafood approved the plan to issue shares to increase capital from equity capital to existing shareholders at a ratio of 1:1, corresponding to shareholders owning 1 share will receive 1 new share and the source of capital is the accumulated undistributed profit after tax up to December 31, 2023.

In which, the expected implementation time is within 45 days from the date of approval by the State Securities Commission.

Thus, if the issuance is successful, Nam Viet's charter capital will double from VND 1,335.4 billion to VND 2,666.7 billion.

In terms of business activities, in the first quarter of 2024, Nam Viet Seafood recorded many signs of decline with gross profit margin narrowing in the first quarter of the year.

In the first quarter, Nam Viet Seafood recorded revenue of VND1,106 billion, down 12%. Although the cost of goods sold decreased compared to the same period, due to the sharp decline in revenue, the gross profit margin in the period reached nearly 10% while in the same period last year it was recorded at 17.6%.

Despite actively reducing costs, Nam Viet's pre-tax profit in the first quarter reached VND30.4 billion. After-tax profit decreased by 82% to VND17 billion. Compared to the set target, by the end of the first quarter of 2024, Nam Viet Seafood has only completed more than 5% of the profit plan.

In 2024, Nam Viet Seafood targets total revenue of VND 5,000 billion, an increase of 13% compared to 2023, with target after-tax profit nearly 8 times higher, up to VND 306 billion.

The Chinese market is recovering strongly, with high demand for pangasius and stable prices.

Nam Viet Seafood (ANV): Second quarter profit estimated to increase 2.5 times compared to first quarter

Notably, Nam Viet Seafood's board of directors also said that the profit in the first half of 2024 is estimated to reach 50 - 60 billion VND. In the first quarter of 2024, the company's after-tax profit reached about 17 billion VND, so the profit in the second quarter of 2024 is estimated to increase by about 2 - 2.5 times compared to the first quarter of 2024.

The leader of Nam Viet Seafood said that up to now, the company has successfully expanded its customer base in Beijing and Guangzhou (China), in addition to the traditional area of ​​Shanghai. At the same time, after market research, Nam Viet Seafood has expanded its product line of seasoned butterfly-cut pangasius, meeting the high demand in China.

In addition, with the advantage of 100% self-sufficiency in raw fish, the company has solved the shortage of large-sized pangasius (1.5 - 2 kg) that the entire Vietnamese pangasius industry encountered in the first 9 months of this year; this is also the preferred fish size in China.

Currently, many financial institutions assess that Nam Viet Seafood's business prospects this year will be more positive as pangasius export prices are expected to recover amid increasing demand and decreasing supply.

Currently, many financial institutions assess that Nam Viet Seafood's business prospects this year will be more positive as pangasius export prices are expected to recover amid increasing demand and decreasing supply.

According to a recent assessment by Rong Viet Securities, the average selling price of pangasius of Nam Viet Seafood will gradually improve thanks to the recovery in the Chinese market when supply and inventory decrease and benefit from the gradual price increase in the US market. However, the selling price will hardly increase sharply and is expected to remain at 1.9 USD/kg - equivalent to the average selling price in the second half of 2023.

However, because Nam Viet Aquatic Products is a 100% self-sufficient enterprise, its gross profit margin is expected to improve sharply to an average of 14% this year thanks to the gradual reduction in farming costs through lower soybean meal prices. In the international market, soybean prices in June 2024 decreased by 26% compared to the same period last year.

Based on the current market situation, Rong Viet Securities forecasts that Nam Viet Seafood's consumption output in the second half of this year will reach 36,000 tons, an increase of 20% over the same period in 2023.

In the domestic market, after the cooperation deal with Bach Hoa Xanh from March 2023, Nam Viet Seafood products are assessed to have higher recognition and are easily accessible to domestic consumers.

According to a recent forecast by Vietcombank Securities, Nam Viet Seafood's revenue from the domestic market this year could increase by 63% compared to 2023.

Nam Viet Company Limited - the predecessor of Nam Viet Joint Stock Company (Navico; HoSE: ANV) - was established in 1993 with a charter capital of VND27 billion, mainly operating in industry and civil construction. In 2000, the company expanded its business to seafood processing, specializing in processing and exporting frozen basa fish and tra fish.

By 2006, the company officially converted to a joint stock company model, increasing its charter capital to 660 billion VND. Since then, Nam Viet Seafood's charter capital has continuously witnessed increases in charter capital.

Source: https://danviet.vn/thuy-san-nam-viet-du-kien-tang-von-dieu-le-gap-doi-dat-26667-ty-dong-lai-quy-ii-uoc-tang-vot-20240706171007383.htm