2 business scenarios of Vinh Hoan
According to statistics from the Vietnam Association of Seafood Exporters and Producers, it is estimated that by the end of June 2024, Vietnam's pangasius export turnover is estimated to reach nearly 900 million USD, an increase of more than 2% over the same period in 2023. Of which, value-added pangasius products are estimated to reach more than 15 million USD, dried pangasius and frozen products are estimated to reach nearly 160 million USD, the rest are frozen pangasius fillet products.
Although it is considered to have many opportunities and bright prospects, each seafood enterprise has a different view on the business situation in 2024.
For example, Vinh Hoan, the largest pangasius exporter in the first 5 months of the year (according to statistics from the Vietnam Association of Seafood Exporters and Producers), holding the number 1 position in pangasius exports to the US, Vinh Hoan is very cautious about this year's business prospects.
For the 2024 business plan, this enterprise has set out 2 scenarios.
In the basic scenario, Vinh Hoan targets revenue of VND10,700 billion, up 6.6% year-on-year, and the parent company's after-tax profit is expected to be VND800 billion, down 12.9% compared to the actual performance in 2023.
In the high scenario, revenue is expected to reach VND11,500 billion, up 14.6% year-on-year, and the parent company's after-tax profit is expected to be VND1,000 billion, up 8.8% compared to the actual performance in 2023.
At the end of the first quarter, although it brought in VND 2,855 billion in revenue, an increase of 29% over the same period, Vinh Hoan's after-tax profit only reached VND 189 billion, a decrease of 16%.
In April 2024, Vinh Hoan recorded total revenue of VND 1,091 billion, up 25% over the same period and up 0.15% over the previous month.
By May, Vinh Hoan achieved revenue of VND1,131 billion, up 19% over the same period last year. The growth was achieved because most of the company's export markets showed signs of positive recovery. While the US market decreased slightly by 0.3% to VND372 billion, other markets had impressive growth. Revenue from the domestic seafood market increased by 47% to VND329 billion, the European market increased by 26% to VND154 billion, and the Chinese market increased by 12% to VND104 billion. Other markets also grew by 22% to VND154 billion.
Accumulated revenue in the first 5 months of the year, Vinh Hoan reached 5,080 billion VND, equivalent to 47.5% of the plan set at the beginning of the year. If calculated according to the most favorable scenario for the whole year, Vinh Hoan has completed 44.2% of the target.
Pangasius exports gradually improve, will Vinh Hoan's profits improve sharply?
Pangasius export price is forecast to increase by about 10% since the third quarter, an opportunity for Vinh Hoan to rise?
Experts predict that pangasius exports have shown positive signs, with demand in major markets gradually recovering. The situation will improve from the third and fourth quarters, leading to a price trend that will increase by at least 10% compared to current prices.
The gradual reduction in inventory pressure of enterprises will be an opportunity to increase production and fulfill new orders at better prices.
In addition to the recovery in demand, the driving force for the increase in export prices of pangasius also comes from the shortage of raw fish supply. Low raw fish prices in recent times have caused fish farmers to delay stocking in the first half of this year. Meanwhile, the farming time usually takes 6-8 months for fish to reach the required weight for harvest (1.2-1.5 kg). In addition, the end of the year is the peak consumption period for seafood with a series of festivals in Western countries.
Besides the recovery of the pangasius segment, the growth momentum of Vinh Hoan Seafood in the coming time also comes from efforts to diversify product structure.
To take advantage of the opportunities of Vietnamese pangasius, Vinh Hoan has taken a new direction, actively promoting the image of Vietnamese pangasius to the world market. Vinh Hoan Seafood is still known as the leading enterprise in the processing and exporting of pangasius in Vietnam, accounting for about 15% of the total pangasius export turnover of the country. The US market is also the largest market, accounting for 62% of the total pangasius export revenue of this company in the first 5 months of this year.
With a favorable market, plus the cost of fish fry and aquatic feed in the first 5 months of this year has tended to decrease, averaging a decrease of 6% and 8% respectively compared to the same period in 2023. Surely Vinh Hoan Aquatic Products' gross profit margin will be improved.
Besides the recovery of the pangasius segment, the growth momentum of Vinh Hoan Seafood in the coming time also comes from efforts to diversify product structure.
Specifically, at the recent annual general meeting of shareholders, Vinh Hoan planned to spend 930 billion VND on expansion investment, with many items such as upgrading collagen production capacity and renovating the factory at Vinh Hoan Collagen Company; investing in warehouses and investing in additional machinery and equipment for phase 1 of Thanh Ngoc fruit processing factory; investing in warehouse expansion and upgrading production capacity of Feedone aquatic feed factory, Sa Giang factory.
In addition, Vinh Hoan also plans to invest in expanding farming areas; invest in new and renovate Vinh Phuoc, Thanh Binh and Vinh Hoan factories.
Overall, the progress of implementing the plan in the first quarter of the year was not positive, but seafood enterprises still have a long way to go. The latest export figures have brought some good news to this group, especially for pangasius enterprises like Vinh Hoan.
Source: https://danviet.vn/xuat-khau-ca-tra-dan-khoi-sac-loi-nhuan-cua-vinh-hoan-se-cai-thien-manh-20240628163604115.htm
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