FMC [NOT RATED] - New farming area to capture global shrimp demand recovery

- Sao Ta Foods JSC (HOSE: FMC) is one of the top three leading shrimp exporters in Vietnam, accounting for 5% of the nation’s shrimp export value in 2022.

- In H1 2023, FMC’s revenue slumped by 25.5% YoY. However, this outperformed Vietnam’s overall shrimp export value, which dropped by 32% YoY. This decline was due to Japan, FMC’s largest export market, having more consistent demand compared to other major markets like Europe and the US.

- FMC targets 2023G revenue of VND5.9tn (+3.5% YoY), which we believe is achievable given our outlook for shrimp exports to recover in H2 2023, in addition to FMC expanding its processing and farming capacity.