Illustratuve image. Photo: vneconomy
Hung Vuong's higher targeted revenue and profits for 2017 welcomed by stock market.
After announcing an expected net profit of VND400 billion ($17.5 million) in 2017, the share price of the Hung Vuong Joint Stock Company (HSX stock code HVG) hit its ceiling on March 14.
HVG has just published its annual report for 2016. Its management noted it was a difficult year due to the impact of oil price fluctuations, Brexit pushing up raw material prices, and export prices of pangasius (basa fish) falling sharply. It therefore lost more than VND49 billion ($2.15 million) during the year.
The company’s 2017 target is for VND20 trillion ($876.2 million) in revenue and net profit of VND400 billion ($17.5 million). In 2018 it will record VND25 trillion ($1.095 billion) in revenue and about VND700 billion ($30.67 million) in net profit.
In 2016 it lost VND49 billion ($2.15 million) after auditing, while its financial report put net profit at VND308 billion ($13.5 million). The company said this was due to an incorrect accounting of revenue.
In the first quarter of this year, HVG recorded revenue of VND5.787 trillion ($253.5 million), up VND200 billion ($8.76 million) year-on-year. However, cost of goods sold increased sharply, resulting in a pre-tax profit of VND37.4 billion ($1.64 million), down 45 per cent year-on-year. After-tax profit was VND 30.5 billion ($1.34 million), with less than VND10 billion ($440,000) for shareholders of the parent company.
According to its annual report, it currently has 33,000 tons of fish fillet in stock. Its pig breeding project is a new step in Hung Vuong’s strategy. The pig industry is booming, with most profits being earned by foreign corporations due to the lack of high quality breeding centers. Hung Vuong’s two pig breeding projects in An Giang and Binh Dinh province are therefore suitable investments.
Hung Vuong is one of the largest seafood producers, processors and exporters in Vietnam. The company listed its shares in November 2009. Its charter capital currently stands at more than VND2.27 trillion ($99.45 million).