Nam Viet Corp invested another 38 billion VND into the collagen extracted from fish skin project

NAVICO (Navico; MCK: ANV) has just announced the Resolution of the Board of Directors on the additional capital contribution to Amicogen Nam Viet Co., Ltd.

The total additional capital contributed to the joint venture company with Nam Viet is 38 billion VND. ANV's capital contribution representative will be Mr. Doan Toi, General Director with 80% of total contributed capital and Mr. Le Minh Tuan with 20% of total contributed capital.

Previously, in March 2020, Amicogen Nam Viet Co Ltd was established with the goal of promoting the joint venture project between Navico and Amicogen. Amicogen Nam Viet Co., Ltd’s head office is located in Can Tho, with a charter capital of 46 billion VND; and Mr. Pham Huu Huong was elected as the director.

At the end of 2021, the company officially started construction of "Collagen peptide and gelatin (C&G) factory" - a joint venture project between Navico and Amicogen in the Thot Not industrial park, Can Tho City.

The factory is built with a capacity of 800 tons of finished collagen and gelatin products per year, according to Korean standards. Accordingly, fresh fish skin costs around 0.5 USD/kg, the price of  collagen can reach from 25-40 USD/kg.

The project to extract collagen peptides and gelatin from pangasius skin is part of Nam Viet's large-scale closed-loop production chain. This is also a strategic project in Navico's plan to transform the structure into value-added products.

 Extracting collagen from fish skin can make all use of fish and add value of Vietnam's fish products export

Currently, ANV's profit structure includes the following segments: frozen pangasius exports, raw fish farming, aqua feed processing, value-added product processing, by-products and solar power. ANV's management expects the profit of the first phase of the C&G factory to be $1.5 million, contributing 10% of the group's profit.

In terms of business results, the company's net revenue from sales and service provision in the second quarter of 2022 reached VND 1,294 billion, up 20% over the same period last year. In which, revenue mostly came from exports, reaching 900 billion VND. After deducting expenses, Nam Viet reported a profit after tax of more than 240 billion  VND , 10 times higher than in the second quarter of 2021.

ANV aims to earn a total revenue of 4,900 billion VND  and a profit before tax of 1,000 billion VND in 2022. Thus, with pre-tax profit of 509.9 billion dong accumulating in the first 6 months of the year, the company has completed 51% of the full year profit target.

Notably, recently from July 15 to August 9, Mr. Do Lap Nghiep, Chairman of Navico, matched orders to sell 450,000 shares for personal purposes in the context that the pangasius market was at a plateau compared to the first months of 2022. After completing the transaction, the number of shares that Navico's Chairman holds is only 19,000 shares, equivalent to 0.01%.

At the end of the trading session on August 22, 2022, ANV stock was at 52,000 VND/share, up 0.97% compared to the reference number.

Compiled by Thuy Linh