(seafood.vasep.com.vn) Vinh Hoan Corporation (HOSE: VHC) continues to solidify its position as the leader in Vietnam's pangasius export industry with impressive business results in 2024 and positive prospects for 2025. Factors supporting growth, such as recovering demand, improved selling prices, and favorable international trade policies, make Vinh Hoan one of the top stocks to watch in investment portfolios for 2025.
Vinh Hoan currently accounts for more than 17% of Vietnam’s total pangasius export turnover. The company boasts an advanced farming and processing system, along with a product diversification strategy, which helps maintain its competitive edge, especially in major markets like the U.S., EU, and China. In addition to pangasius, Vinh Hoan has also strengthened its collagen and gelatin segment and expanded its food processing activities through its subsidiary, Sa Giang.
In 2024, Vinh Hoan recorded a revenue of 12,535 billion VND, up 24.9% year-on-year (YoY), and net profit after tax of 1,311 billion VND, up 34.6%. Gross profit margin significantly improved due to higher selling prices for pangasius and a strong recovery in export demand. In Q4/2024, revenue reached 3,220 billion VND (up 34% YoY), and net profit after tax surged to 440 billion VND (up 388% YoY).
In 2024, the company's revenue was primarily derived from pangasius (6,949 billion VND, up 25%), followed by collagen and gelatin (773 billion VND, up 7%), by-products (1,850 billion VND, up 11%), and Sa Giang (701 billion VND, up 54%).
Vinh Hoan's main export markets include the U.S., China, and the domestic market. Revenue from the U.S. reached 3,937 billion VND (up 33% YoY), from China was 1,248 billion VND (up 6% YoY), and from the domestic market was 3,492 billion VND (up 26% YoY).
Regarding its financial situation, Vinh Hoan’s debt-to-equity ratio is reasonable and does not put significant pressure on its cash flow, allowing the company to maintain stability and good liquidity.
Looking ahead to 2025, Vinh Hoan’s growth prospects remain promising. Export volumes of pangasius are expected to continue recovering, especially in the second half of 2025, due to factors such as the Federal Reserve’s interest rate cuts boosting consumer demand in the U.S. and the continued competitive advantage of pangasius, which is priced 20-50% lower than substitute fish species. Additionally, U.S. policies may impose higher tariffs on Chinese-imported tilapia, further benefiting Vietnamese pangasius.
The current price of pangasius raw material is 31,000 VND/kg (up 24% YoY) and is expected to continue rising in the second half of 2025. A shortage of raw pangasius supply in key farming regions will push up prices and drive revenue and profit growth for Vinh Hoan.
For 2025, Vinh Hoan is forecast to achieve a revenue of 14,423 billion VND (up 15% YoY) and a net profit after tax of 1,543 billion VND (up 18%). Key growth drivers include improving gross profit margins due to lower farming and transportation costs, continued growth in pangasius consumption in the U.S., and favorable tax policies benefiting Vietnamese pangasius over Chinese tilapia.
With strong growth prospects and solid competitive advantages, Vinh Hoan remains an attractive stock in investment portfolios. However, the company faces some risks, such as changes in import tax policies in major markets or weaker demand if the U.S. economy does not recover as expected.
Analysts have set a target price for Vinh Hoan stock at 81,700 VND per share, based on the FCFF and P/E valuation methods.