Nam Viet Corporation, listed on the Ho Chi Minh Stock Exchange under the ticker ANV, is a leading Vietnamese seafood processing and exporting company specialising in pangasius. The company has a strong presence in the global seafood market, exporting its products to over 100 countries.
In 2022, Nam Viet achieved impressive revenue and profit growth of 40 percent and 434 percent year-over-year, respectively. This remarkable performance was driven by a recovery in the seafood and pangasius industries following the COVID-19 pandemic.
Vietnamese pangasius exports reached US$2.4 billion in 2022, a 52 percent increase compared to 2021. Expanded export markets and increased consumption in major regions like China and Hong Kong contributed to this growth. As a result, the company’s stock price tripled between May 2021 and June 2022.
However, the pangasius industry faced a significant downturn in 2023 shrinking by 24 percent. Nam Viet specifically recorded a 9.6 percent decline in revenue and a dramatic 91.2 percent drop in profit compared to 2022. This sharp profit decline was primarily attributed to intense price competition and elevated input costs.
Entering 2024, Nam Viet continued to face significant challenges as demand for pangasius in its primary export markets remained sluggish. Consequently, in the first half of the year the company reported a slight decline in both revenue and profit year-over-year. However, a tightening pangasius supply caused by low raw material prices in 2023 and an anticipated recovery in overall demand, could see this turn around in the last half of the year.
That said, though there is reason to be optimistic nothing is for certain. With this in mind, it’s essential to conduct thorough due diligence and carefully consider industry trends before buying shares in Nam Viet.
Disclosure: The author does not have any financial interest in ANV stock.
See also: Vietnam’s Seafood Processing: Industry Overview 2024