Vinh Hoan posts great results in May on recoveries of export markets

Wednesday, Jun 16, 2021 08:27

Vinh Hoan is a leading company in producing pangasius products and high quality seafood. The company's export activities have improved, boosted by the economic recovery of main export markets. — Photo

Vinh Hoan Corporation (VHC) just published its May business results with total revenue rising 35 per cent over the same period last year to VND473 billion (US$20.5 million).

The gain was mainly due to growth in pangasius products (up 46 per cent), by-products (up 51 per cent) and added value products.

On the exporting front, the US, the company’s leading export market, witnessed the biggest growth of 188 per cent against the same period last year, while exports to China increased 9 per cent and to other markets rose 4 per cent.

Meanwhile, the company’s exports to European markets fell 22 per cent year-on-year.

According to a recent report from Agribank Securities Corporation (Agriseco, AGR), Vinh Hoan benefits from the lowest preferential export tax rate, which is US$0.09 per kilo, 2.7 times lower than the rate the whole industry has to pay.

The tax advantage and the rapid recovery of the US economy with the rising demand on frozen pangasius products will help the US market continue to grow strongly next year.

In addition, the European-Viet Nam Free Trade Agreement (EVFTA) and the merger with Sa Giang Import Export Corporation (SAGIMEXCO, SGC) will also boost the potential of EU countries.

The company has acquired SAGIMEXCO at a rate of 76.7 per cent. SAGIMEXCO is one of the biggest domestic shrimp cracker producers and mainly exports to EU markets. The deal is considered a stepping stone for Vinh Hoan to capture domestic market share through SAGMEXCO. It is expected that the domestic market share will increase in the coming years, boosting Vinh Hoan’s domestic revenue and profit.

In May, SAGIMEXCO reported a decline of 15 per cent over the previous month in revenue, mostly due to a fall in main products including shrimp crackers (down 15 per cent) and rice products (down 25 per cent).

Regarding export markets, revenue from the European market climbed 18 per cent over the previous month and from other markets rose 106 per cent. This showed that the company’s export markets have expanded. However, revenue from the domestic market fell 53 per cent.

On the stock market, VHC is listed on the Ho Chi Minh stock exchange (HoSE), while SGG listed on the Ha Noi Stock exchange (HNX).

On Monday, VHC shares climbed 0.79 per cent to VND44,550 per share at 14:30, while SGC shares stayed flat at VND63,500. — VNS

Comments (0)