Vinh Hoan, listed on the Ho Chi Minh Stock Exchange under the ticker VHC, is a leading Vietnamese seafood company. Established in 1997, it has become one of the world’s largest pangasius exporters, with a strong presence in the US and Europe.
In 2021 and 2022, VHC’s revenue saw huge growth, with pre-tax profit increasing by 59.29 percent and 81.54 percent year-over-year, respectively. As a result, the company’s stock experienced a 2.5-fold increase between September 2021 and June 2022.
This performance was primarily attributed to a robust recovery in the seafood and pangasius industries following the COVID-19 pandemic. Vietnam’s pangasius turnover in 2021 and 2022 was US$1.6 billion and US$2.4 billion, up 8.4 percent and 52 percent compared to the previous year.
However, 2023 was a difficult year for the Vietnamese seafood industry, as record inflation early in the year, high inventory levels, and an economic recession led to market stagnation. By the end of 2023, the total export value of the company reached just US$307.8 million, down 31 percent compared to 2022. Consequently, VHC recorded a 25.2 percent decline in revenue and a dramatic 50.7 percent drop in profit.
In the first half of 2024, VHC recorded a 22 percent increase in revenue. Pretax profit, however, declined by 21.8 percent, due to rising costs. In addition to exporting pangasius, Vinh Hoan has strategically diversified into other segments, including collagen and gelatin–a new gelatin production line started in April 2024, is expected to boost collagen and gelatin capacity by 50 percent.
The Vietnam Association of Seafood Exporters and Producers predicts a 5 to 10 percent surge in Vietnamese pangasius export prices to the US market in the latter half of 2024. This could positively impact Vinh Hoan’s performance.
Disclosure: The author does not have any financial interest in VHC stock.
See also: Vietnam Seafood Processing: Industry Overview 2024