What does Nam Viet Seafood do to achieve its goal of increasing net profit 8 times this year?

June, seafood exports recover

In June 2024, the country's seafood exports are estimated to reach 875 million USD, up 14% over the same period last year. This is also the month with the highest export turnover since the beginning of the year. Accordingly, cumulative seafood exports in the first half of this year brought in over 4.4 billion USD, up nearly 7% over the same period in 2023.

Exports of most key products saw high growth in June: Pangasius increased by 22%, tuna increased by 40%, and crab increased by 59%. Shrimp increased slightly by 7%. Squid and octopus were the only products that decreased slightly compared to the same period last year.

Exports of most key products had high growth in June: Pangasius increased by 22%, tuna increased by 40%, and crab increased by 59%.

Previously, it also set a target of promising growth in the seafood market, but in reality, the production and business situation in the first quarter of 2024 of 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 the whole year of 2023, Nam Viet Seafood's net profit only reached 39 billion VND - the lowest level in 7 years, and completed 21% of the profit target. Mr. Doan Toi - General Director of Nam Viet Seafood at that time said that although the number of orders of the company was not small, the profit recorded poor results due to high cost of goods sold.

Nam Viet Seafood still targets 8-fold increase in net profit this year, expecting pangasius price to increase

In the plan submitted to the General Meeting of Shareholders, ANV set a revenue target of VND5,000 billion this year, an increase of 13% compared to 2023 and a profit after tax of VND306 billion, 8 times higher (an increase of 685% compared to 2023). With the above target, ANV's Board of Directors expects dividends to fluctuate between 5-10%. This plan is also considered ambitious by Nam Viet.

In addition, Nam Viet also plans to become the pangasius company with the largest charter capital on the stock exchange. Nam Viet submitted to shareholders for approval a plan to issue shares from equity capital at a ratio of 1:1. This means that each shareholder owning 1 share will receive 1 new share. If the issuance plan is successful, Nam Viet's charter capital will increase from 1,335 billion to 2,667 billion VND.

So far, many financial institutions still 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.

So far, many financial institutions still 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.

BIDV Securities Company believes that in 2024, demand for pangasius consumption will gradually recover as inflation cools down and people's spending increases again, especially in the last months of the year. Nam Viet's domestic pangasius consumption will be better. In addition, the price of pangasius exported to the US and China is expected to increase thanks to recovering demand, while supply is limited and hydrological conditions are unfavorable in the early stages of 2024.

According to a newly published report by Vietcombank Securities (VCBS), this organization also expects ANV's net revenue in 2024 to reach VND4,999 billion, an increase of 12%; after-tax profit to reach VND220 billion, 5.2 times higher than in 2023.

The Vietnam Association of Seafood Exporters and Producers (VASEP) currently assesses that pangasius exports will improve from the third quarter of 2024, thereby helping to increase export prices by at least 10% compared to current prices.

For Nam Viet Seafood, the company's business activities can benefit from the US market when it continues to enjoy an anti-dumping tax rate of 0% (according to POR19) and selling prices in the US can recover. At the same time, Nam Viet Seafood is also promoting its customer base in China, aiming to increase sales in this market.

Nam Viet also plans to become the pangasius enterprise with the largest charter capital on the stock exchange.

Currently, Navico has ensured 100% self-sufficiency in feed for farming, 100% of raw fish for processing factories. Including: 10 feed factory lines with a capacity of more than 1,000 tons of finished products/day; 14 fish farming areas of Nam Viet Joint Stock Company with a total water surface area of ​​152 hectares; Nearly 600 farming areas of Nam Viet - Binh Phu Aquaculture One Member Co., Ltd; 4 processing factories with a total designed capacity of 1,000 tons of raw fish/day. Thereby, helping Nam Viet Aquaculture reduce raw material costs in production and business activities.

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-lam-gi-de-dat-duoc-muc-tieu-lai-rong-tang-gap-8-lan-trong-nam-nay-20240701145307975.htm