- 2024-05-14T00:00:00
- Company Research
- VHC announced Q1 2024 results with revenue of VND2.9tn (USD114mn; +29% YoY) and NPAT-MI of VND170bn (USD7mn; -23% YoY), fulfilling 23% and 10% of our respective full-year forecasts. As earnings trailed our projections, we see a downside risk to our forecasts, pending a more comprehensive review.
- In Q1 2024, VHC’s revenue grew 29% YoY which was mainly led by a 24% YoY increase in sales of frozen pangasius filets and related products (e.g., breaded fish, fish fat, fish meal, and feed) together with 34% YoY growth in sales of collagen and gelatin (C&G). In our estimate based on Agromonitor’s data, VHC experienced a 46% YoY surge in pangasius filet export volume which was offset by a 20% YoY decrease in export prices. As a result, GPM contracted 8 ppts chiefly due to weak selling prices.
- Regarding export markets, VHC’s sales turned positive growth across key markets, including US (+2% YoY), Europe (+10% YoY), and China (+50% YoY). The domestic market made the largest contribution to revenue in Q1 2024 (29% of total Q1 revenue).
VHC’s Q1 2024 results
VND bn | Q1 2023 | Q1 2024 | YoY | QoQ | Q1 2024/ 2024F |
Net revenue | 2,222 | 2,856 | 29% | 19% | 23% |
*By market |
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- US | 707 | 723 | 2% | 23% |
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- Europe | 505 | 553 | 10% | 33% |
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- China & Hong Kong | 226 | 339 | 50% | 56% |
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- Others | 250 | 629 | 152% | 4% |
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- Vietnam | 558 | 807 | 45% | -1% |
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*By product |
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- Collagen & gelatin | 178 | 238 | 34% | 11% |
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- Frozen filets & others | 2,070 | 2,572 | 24% | 25% |
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- Rice products | 108 | 176 | 63% | 17% |
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Gross profit | 384 | 266 | -31% | 36% | 11% |
EBIT | 265 | 134 | -49% | 186% | 8% |
PBT | 260 | 217 | -17% | 120% | 11% |
NPAT-MI | 219 | 170 | -23% | 256% | 10% |
Gross margin | 17.3% | 9.3% |
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SG&A expenses/revenue | 5.4% | 4.6% |
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EBIT margin | 11.9% | 4.7% |
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NPAT-MI margin | 9.9% | 5.9% |
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Source: VHC, Vietcap’s forecast (*Revenue breakdowns by market and product are based on VHC’s preliminary results, of which the total revenue figure is slightly different from the official number)
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