Nam Viet Seafood doubles capital, many expect business to accelerate at the end of the year

Nam Viet Seafood (code ANV) prepares to double its equity capital

The State Securities Commission has just announced that it has received a report on the issuance of shares to increase capital from equity of Nam Viet Joint Stock Company (code ANV).

Accordingly, Nam Viet plans to issue 133.1 million shares to existing shareholders at a ratio of 1:1, meaning that for every share a shareholder owns, they will receive 1 new share.

If the issuance is successful, Nam Viet's charter capital will increase to VND2,666 billion, double the current level. This will help Nam Viet become the pangasius enterprise with the largest charter capital on the stock market.

The above capital increase plan was approved at the company's 2023 Annual General Meeting of Shareholders but was not implemented, so it was postponed to 2024. After that, this plan was approved at the 2024 Annual General Meeting of Shareholders held at the end of June.

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.

In terms of business activities, in the second quarter of 2024, Nam Viet recorded net revenue of VND 1,193 billion, an increase of 11% over the same period last year.

Notably, in the second quarter of 2024, Nam Viet recorded a sudden increase in other expenses to VND 18.5 billion, while in the same period last year it was only about VND 1 billion. Therefore, after deducting expenses, Nam Viet reported a profit of VND 17.5 billion, also a significant improvement compared to the loss of VND 51 billion in the same period last year.

In the first 6 months of 2024, Nam Viet's net revenue reached VND 2,209 billion, a slight decrease compared to the first half of 2023. As a result, this seafood company reported a profit of VND 34 billion, down 17% over the same period last year.

In 2024, Nam Viet Seafood aims to achieve revenue of VND5,000 billion and after-tax profit of VND306 billion. Thus, at the end of the first two quarters of the year, the company has completed 44% of the revenue plan and 11% of the profit target.

Nam Viet Seafood (Navico; HoSE: ANV) will become the pangasius enterprise with the largest charter capital on the stock exchange if it successfully implements the plan to issue shares to increase equity capital...

Many expect business to accelerate in the second half of the year

In its plan, ANV has 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). This plan is considered ambitious by Nam Viet.

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) assessed that the export situation of pangasius will improve from the fourth quarter of 2024, thereby helping to increase export prices by at least 10% compared to current prices.

Nam Viet (ANV) has just received great news when the US lifted the tax on frozen pangasius. The US Department of Commerce determined that Nam Viet and many large Vietnamese pangasius enterprises did not have dumping behavior, which means that they will not be subject to anti-dumping tax.

Nam Viet’s business activities will therefore accelerate in the US market along with the recovery of pangasius prices to the US. Nam Viet Seafood’s management board said that the company has successfully cooperated with major seafood distributors, and reconnected with old customers thanks to its history of exporting to the US in the period before 2014.

Nam Viet Seafood is also expanding its customer base in China, aiming to increase sales in this market. After market research, Nam Viet Seafood has expanded its product line of seasoned butterfly 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 - 2kg) that the entire Vietnamese pangasius industry encountered in the first 9 months of this year; this is also the preferred fish size in China.

Nam Viet is currently the second largest pangasius production and export enterprise with a closed production chain in the world.

Nam Viet is currently the second largest pangasius producer and exporter in the world with a closed production chain. The company owns 250 hectares of traditional farming areas, providing 120,000 tons of raw fish/year, and 600 hectares of high-tech farming areas invested since 2018, providing 250,000 tons of raw fish/year.

The company currently owns 20,000 pairs of parent fish capable of producing 14 billion fingerlings. With a feed factory with a designed capacity of 800,000 tons/year, Nam Viet is capable of supplying 100% of the feed for the company's 150-hectare fingerling farming area.

In addition, the company is also operating 4 seafood processing factories with a processing capacity of up to 1,200 tons of raw fish per day and has achieved all international quality certifications.

It is known that Nam Viet has announced information on dividend payment in 2023 to the company's shareholders.

Accordingly, Nam Viet agreed to pay 2023 dividends at a rate of 5% in cash, equivalent to shareholders owning 1 share will receive 500 VND. The ex-dividend date is October 11 and the payment date is December 27, 2024.

With more than 133 million shares outstanding on the market, Nam Viet is expected to spend more than 66.5 billion VND to pay dividends to company shareholders.

Previously, from 2020-2022, Nam Viet maintained a dividend payment of VND1,000/share, before halving it to VND500/share in 2023, the lowest dividend ever paid. Part of the reason is because 2023 is a difficult business year for seafood enterprises in general and Nam Viet in particular.

Source: https://danviet.vn/thuy-san-nam-viet-tang-von-gap-doi-nhieu-ky-vong-kinh-doanh-but-toc-cuoi-nam-20240930154426091.htm