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Shares of husbandry companies soar on rising profits

Update: July, 08/2020 - 09:00

 

A worker processes pork. Pork prices in May hit a 20-year high of VND103,000 (US$4.4) per kilogram due to a scarcity caused by the African swine fever epidemic that broke out in February last year. — VNA/VNS Photo

HÀ NỘI — Shares of husbandry companies skyrocketed in the second quarter of this year, bolstered by positive earning results and increasing pork prices due to short supply.

Shares of Vissan Joint Stock Company (VSN) soared 35 per cent in the second quarter, from VNĐ24,900 to VNĐ33,400 per share.

VSN reported net revenue exceeded VNĐ1.45 trillion (US$62.4 million) in Q1, up 21 per cent year-on-year. Post-tax profit reached VNĐ46.5 billion, up 19 per cent against last year. Revenue from fresh meat accounted for nearly VNĐ669 billion, up 20 per cent and revenue from processed food accounted for nearly VNĐ742 billion, up 22 per cent.

Vissan attributed the increase in Q1 profit to an increase in pig breeding activities.

This year, Vissan targets total revenue of VNĐ5.6 trillion, up 12 per cent compared to 2019, while pre-tax profit is expected to reach VNĐ180 billion.

Since early this year, the share price of Dabaco Group Joint Stock Company (DBC) has doubled, closing Tuesday at VNĐ44,600 per share.

In the first half, DBC expects to earn VNĐ744 billion in post-tax profit, a surge of nearly 50 times from the same period last year.

The company has completed 163 per cent of its yearly target in just half the year.

This year, DBC plans to pay a dividend at a rate of 25 per cent, of which 15 per cent will be paid in cash and 10 per cent in shares.

Dabaco expects its pig herd to be the largest of any producer’s in Việt Nam by the end of the year and 15 per cent larger than last year when pigs were culled in large numbers due to an African swine fever outbreak.

MITRACO Livestock JSC (MLS) reported a rally of 33 per cent in Q1 revenue, reaching VNĐ93 billion and post-tax profit of VNĐ22 billion year while suffering a loss of VNĐ7 billion in Q1 last year.

This year, MLS hopes to earn VNĐ40 billion in profit. The company posted a loss of VNĐ11 billion last year.

MLS shares surged 137 per cent in Q2 this year, from VNĐ10,500 per share to 24,300 per share.

Masan MEATLife Joint Stock Company (MML)'s meat and livestock segment achieved net sales of VNĐ453 billion in Q1 this year, nearly VNĐ5 billion per day, up 85 per cent compared to the fourth quarter of 2019.

In 2020, MML aims to hit revenue of VNĐ16-18 trillion compared to VNĐ14.6 trillion recorded in the previous year. The after-tax profit is expected to range from VNĐ200 billion to VNĐ500 billion. Post-tax profit in 2019 touched VNĐ115 billion.

Pork prices in May hit a 20-year high of VND103,000 ($4.4) per kilogram due to a scarcity caused by the African swine fever epidemic that broke out in February last year.

Authorities have been increasing imports to contain prices, and even allowed for the first time imports of live pigs to cater to people’s preference for fresh meat over frozen meat.

Việt Nam had to cull more than 4,000 pigs infected with African swine fever in 20 localities in the first five months of this year after the incurable disease returned, according to the Ministry of Agriculture and Rural Development. — VNS

 

 

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