Two “big guys” in the seafood industry win big

Preliminary reports of Vinh Hoan Joint Stock Company (VHC) and Sao Ta Food Joint Stock Company (FMC) show that the business situation of two large seafood enterprises has been favorable in the first quarter of this year. . Vinh Hoan recorded an increase in revenue for 3 consecutive months with the main focus being pangasius. In February alone, pangasius sales increased sharply by 160%. Accumulated in the first quarter of the year, total revenue reached more than 3,200 billion dong, up nearly 80% over the same period last year.

Sao Ta announced sales for the first 3 months of the year with uneven performance. In the first month of this year, the company recorded sales of nearly $29 million, equal to 190% of the same period in the same period, due to the fact that there were shipments near the end of 2021 that were converted to this year’s consumption. Sao Ta’s management assesses that January’s sales are a new milestone in the development of the business. For the whole quarter, sales increased by more than 39% to $58.7 million.

Along with the business results, the stock market prices of these two companies had the opportunity to make waves. From the price range around 60,000 VND/unit, VHC has received many consecutive price increases during the past time. Considering only 2 trading weeks in April, there were only 3 trading sessions of this code going backwards but with a rather shallow level. VHC closed the session on April 14 at 102,600 dong per unit, up nearly 53% compared to the beginning of the year.

The FMC ticker is more volatile. At the beginning of the year, the market price dropped slightly from 53,000 dong per unit to less than 50,000 dong, then increased almost continuously, surpassing the mark of 60,000 dong per unit at the end of February. Closing session on April 14, the market price of this code reached VND 72,500, up nearly 37% compared to the beginning of the year.

A recent report of Rong Viet Securities (VDSC) said that pangasius exports will record a strong recovery this year due to increased global demand for white fish, especially after a shortage from Russia. The high selling price will remain at least until the end of the second quarter due to the increase in raw material prices. In addition, caught fishery decreased due to the increase in oil prices, which pushed up pangasius consumption. Accordingly, VDSC expects the profit of pangasius enterprises to increase sharply by triple digits on a low base compared to the same period in the first half of this year.

Data from the Vietnam Association of Seafood Exporters and Producers (VASEP) shows that, seafood export the whole country was estimated at 920 million USD, bringing the total export turnover of this item in the first quarter to 2.4 billion USD, up 40% over the same period last year.

For the pangasius industry, the first quarter of this year reached 646 million USD, up 88% over the same period last year. With shrimp, export turnover in the first three months of the year reached over $900 million, up 37% over the same period. These two items account for more than two-thirds of seafood export turnover.

Analyzing more about the export market, Mirea Asset Securities (MASVN) stated that Vietnamese pangasius will directly benefit from Russia’s embargo. Pollen is a white fish that competes directly with Vietnamese pangasius in the world market. Every year Russia exports about 400 million USD of this fish. Therefore, when Russia is embargoed by the US and Western European countries, it will be a great opportunity for Vietnamese pangasius.

However, MASVN noted that the industry will face the challenge of rising aqua feed prices. In fact, in the market, the prices of the above items have started to increase from mid-March to early April. In which, CP Vietnam has increased by 400 dong per kg for many brands of fish feed. Ausfeed Binh Dinh also adjusted the price of aqua feed to 300-400 VND per kg. Food for white-leg shrimp has also recently increased to 2,000 VND/kg.

According to An Binh Securities (ABS), in addition to the difficulty of feed prices for shrimp and fish, businesses also have to calculate the scenario when logistics costs increase, oil prices increase, increasing transportation costs. Besides, the industry is also under competitive pressure from other exporting countries such as India, Ecuador, Indonesia…

Siddhartha