We maintain our OUTPERFORM rating for VHC as we continue to believe in the bright long-term growth of the company following (1) the frozen fillet segment recovering after short-term economic headwinds and (2) the sustainable growth of VHC’s high-margin collagen & gelatin (C&G) business.

We cut our target price (TP) by 6% as we lower our NPAT-MI projection by 16% in 2023F, which is partially offset by our 5% higher bottom-line forecasts for both 2024F and 2025F. We also roll our TP horizon forward to mid-2024 from YE2023.