- VHC announced its Q3 2022 results with revenue of VND3.3tn (USD133mn; +46% YoY) and NPAT-MI of VND450bn (USD18mn; +76% YoY). The company’s 9M 2022 also showed robust momentum with revenue of VND10.8tn (USD439mn; +69% YoY) and NPAT-MI of VND1.8tn (USD73mn; +176% YoY). The robust NPAT-MI growth in 9M 2022 was thanks to (1) a 124% YoY jump in gross profit that was backed by stronger selling prices, (2) SG&A/sales improving 1.7 ppts YoY from 6.3% in 9M 2021 to 4.6% in 9M 2022 and (3) positive net other income in 9M 2022 vs a negative result in 9M 2021.

- VHC’s 9M 2022 revenue and NPAT-MI achieved 78% and 81% of our respective full-year forecasts. Given that fillet demand is projected to be strong as the global market enters holiday seasons at the end of the year — in addition to the piled-up inventory situation in the US market is expected to alleviate in Q4 2022 — we see potential upside risk to our current projection, pending a fuller review.

- In 9M 2022, VHC’s like-for-like revenue (i.e., core pangasius business excluding Sa Giang — VHC’s prawn cracker subsidiary since January 2021) soared 76% YoY due to a 75% YoY increase in sales of frozen pangasius fillets and related products (e.g., breaded fish, fish fat, fish meal and feed).

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