Strong growth of local fisheries production and exports has helped many listed firms increase profits, with some even hitting their yearly profit targets in only nine months.
A major seafood exporter, Vinh Hoan Corp announced its nine-month revenue of nearly 6.6 trillion VND (283.2 million USD) and net profit of 1.04 trillion VND, up 9.6 percent and 153 percent year-on-year, respectively. Particularly, its net profit surpassed the goal set for the whole year by 67 percent.
In the third quarter alone, the company’s selling prices recorded the highest level since the beginning of the year and increased 37 percent over the same period of last year. It saw strong growth in sales of more than 50 percent in most products which helped lift the net profit in the third quarter to over 609 billion VND, a 3.6 times higher than the same period of 2017.
Ben Tre Aquaproduct Import and Export JSC and Sao Ta Foods JSC, two subsidiary firms of PAN Group, have had a good year.
Ben Tre Aquaproduct’s pre-tax profits exceeded its yearly target by 25 percent after nine months thanks to higher fish prices and lower expenses, due to self-sufficiency in fish material. Its revenues reached 308 billion VND (13.2 million USD), up 8.4 percent year-on-year, while cost of capital declined 5.5 percent.
Ending September, its net profit was 55 billion VND, 3.5 times higher than the same period of last year.
Sao Ta Foods has almost hit its yearly target with nine-month pre-tax profit of 128 billion VND, up 36 percent year-on-year and 91 percent of the goal for the whole year. It posted revenues of more than 2.8 trillion VND and net profit of 119 billion VND, up 17 percent and 27.4 percent on-year, respectively. Based on these figures, the company is confident that its profit will surpass the yearly target by 40-50 percent.
Seafood manufacturing Nam Viet Corp also announced its net profit exceeded 2018’s target by 23 percent with 250 billion VND earned in the last nine months, up 253 percent over the same period of last year.
The Ministry of Agriculture and Rural Development (MARD) estimated total output of aquatic products reached nearly 2.6 million tonnes in the last nine months, aquaculture production at more than 2.9 million tonnes and export value at 6.4 billion USD, up 5.1 percent, 6.6 percent and 7.2 percent on-year, respectively.
The US, Japan, China and the Republic of Korea remained top importing markets for Vietnamese seafood, accounting for combined 54.1 percent of total export value.
Tra fish production and exports have developed well since the beginning of this year despite the breeding crisis and barriers in import markets. MARD forecast raw fish supply for export in the last quarter would remain constrained, helping maintain the export price.
A similar situation would happen with shrimp exports together with the recovery of shrimp prices in global markets.
Many Vietnamese seafood processing companies have signed big export contracts for important holidays by the end of the year.
Expected big profits of fisheries firms have also boosted share prices of these companies. Shares of Nam Viet Corp (ANV) have doubled in value since the beginning of the year while shares of Vinh Hoan Corp (VHC) have climbed by 85 percent. Shares of Ben Tre Aquaproduct (ABT), Sao Ta Foods (FMC) and Vinh Hoan Corp (VHC) have risen by 18-74 percent each.
VNS/VNA