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Bumper harvest boosts fisheries’ profits, shares

Update: October, 25/2018 - 07:00
Expected large profits of fisheries firms have also boosted share prices of these companies. — Photo bizlive.vn
Viet Nam News

HÀ NỘI – 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, Vĩnh Hoàn Corp announced its nine-month revenue of nearly VNĐ6.6 trillion (US$283.2 million) and net profit of VNĐ1.04 trillion, up 9.6 per cent and 153 per cent year-on-year, respectively. Particularly, its net profit surpassed the goal set for the whole year by 67 per cent.

In the third quarter alone, the company’s selling prices recorded the highest level since the beginning of the year and increased 37 per cent over the same period of last year. It saw strong growth in sales of more than 50 per cent in most products which helped lift the net profit in the third quarter to over VNĐ609 billion, a 3.6 times higher than the same period of 2017.

Bến Tre Aquaproduct Import and Export JSC and Sao Ta Foods JSC, two subsidiary firms of PAN Group, have had a good year.

Bến Tre Aquaproduct’s pre-tax profits exceeded its yearly target by 25 per cent after nine months thanks to higher fish prices and lower expenses, due to self-sufficiency in fish material. Its revenues reached VNĐ308 billion (US$13.2 million), up 8.4 per cent year-on-year, while cost of capital declined 5.5 per cent.

Ending September, its net profit was VNĐ55 billion, 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 VNĐ128 billion, up 36 per cent year-on-year and 91 per cent of the goal for the whole year. It posted revenues of more than VNĐ2.8 trillion and net profit of VNĐ119 billion, up 17 per cent and 27.4 per cent on-year, respectively. Based on these figures, the company is confident that its profit will surpass the yearly target by 40-50 per cent.

Seafood manufacturing Nam Việt Corp also announced its net profit exceeded 2018’s target by 23 per cent with VNĐ250 billion earned in the last nine months, up 253 per cent over the same period of last year.

Expected favourable conditions by end-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, up 5.1 per cent, 6.6 per cent and 7.2 per cent on-year, respectively.

The US, Japan, China and South Korea remained top importing markets for Vietnamese seafood, accounting for combined 54.1 per cent 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 Việt Corp (ANV) have doubled in value since the beginning of the year while shares of Vĩnh Hoàn Corp (VHC) have climbed by 85 per cent. Shares of Bến Tre Aquaproduct (ABT), Sao Ta Foods (FMC) and Vĩnh Hoàn Corp (VHC) have risen by 18-74 per cent each. – VNS

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