Profit increased 28 times, why is Nam Viet Seafood still having difficulty completing its annual profit target?

Revenue in the third quarter of 2024 is the highest in 5 years, net profit is 28 times higher than the same period, but Nam Viet Joint Stock Company (Navico, HOSE: ANV) still finds it difficult to complete this year's profit target.

Navico - Q3/2024 revenue highest in 5 years, net profit 28 times higher than the same period

Transportation costs - fluctuating 2-3 times higher than the same period in the last 2 quarters - are one of the reasons that erode the profits of pangasius exporting enterprise Nam Viet-Navico, which are already very thin (compared to revenue).

At the end of the third quarter of 2024, Nam Viet Joint Stock Company recorded net revenue of VND 1,341 billion, an increase of more than 32% over the same period. After deducting expenses, profit after tax reached VND 27.8 billion, 28 times higher than the same period.

In the first 9 months of 2024, Navico's net revenue reached VND 3,550 billion, an increase of more than 6% over the same period. Profit after tax reached nearly VND 42.5 billion, a slight increase compared to the first 9 months of 2023.

At the end of the third quarter of 2024, Nam Viet Corporation (Navico - HoSE: ANV) recorded net revenue of VND 1,341 billion, an increase of more than 32% over the same period. After deducting expenses, profit after tax reached VND 27.8 billion, 28 times higher than the same period.

This year, Navico set a target of VND5,000 billion in total revenue and VND306 billion in after-tax profit. With the above results, the company has only completed 71% of the revenue target and 14% of the profit plan.

Completing the plan of after-tax profit of 306 billion VND this year has clearly become a distant dream for Nam Viet-Navico in the context of the conflict situation showing no signs of ending, and shipping rates are unlikely to decrease in the fourth quarter of 2024. What can be expected is a brighter export picture at the end of the year, but perhaps achieving half of the target is already a success for Nam Viet-Navico.

Vietnam Customs data also shows that pangasius exports are optimistic after 3 quarters, increasing by 8% and recording a turnover of 1.5 billion USD. Nam Viet-Navico ranks 2nd in pangasius exports in the domestic market with frozen fish products accounting for 80% of the revenue structure.

KB Securities (KBSV) previously expected the recovery of the pangasius industry in the second half of the year based on the US market. Pangasius export prices are likely to increase slightly due to supply shortages. The ban on the sale of pollock from Russia is also expected to benefit Vietnamese pangasius and Nam Viet-Navico.

ANV aims to increase after-tax profit 8 times compared to 2023.

The latest move in Nam Viet's capital doubling roadmap

Most recently, Nam Viet announced that November 8 will be the last registration date to exercise the right to receive shares issued due to increasing share capital from equity capital.

Accordingly, Nam Viet plans to issue 133.1 million shares to existing shareholders at a ratio of 1:1, meaning that for every share a shareholder owns, they will receive 1 new share.

Previously, the State Securities Commission announced the receipt of documents reporting the issuance of shares to increase equity capital from Nam Viet's equity.

If the issuance is successful, Nam Viet's charter capital will increase to VND2,666 billion, double the current level. This will help Nam Viet become the pangasius enterprise with the largest charter capital on the stock market.

So far, many financial institutions still assess that Nam Viet's business prospects this year will be more positive as pangasius export prices are expected to recover amid increased demand from the US and many other markets and reduced supply.

BIDV Securities Company believes that in 2024, demand for pangasius will gradually recover as inflation cools down and people's spending increases again, especially in the last months of the year. Nam Viet's pangasius consumption will be better. Pangasius export prices to the US and China are expected to increase thanks to recovering demand, while supply is shrinking.

The Vietnam Association of Seafood Exporters and Producers (VASEP) assessed that the export situation of pangasius will improve from the fourth quarter of 2024, thereby helping to increase the export price of pangasius by at least 10% compared to the current price.

For Nam Viet Seafood, the company's business will clearly benefit from the US market as it continues to enjoy a 0% anti-dumping tax rate and its selling price in the US may recover. Not to mention, Nam Viet Seafood is also expanding its customer base in China, aiming to increase sales in this market.

Nam Viet Seafood's Board of Directors said that the company is currently the second largest pangasius production and export enterprise in the world with a closed production chain, including 250 hectares of traditional farming areas, providing up to 120,000 tons of raw fish/year, and 600 hectares of high-tech farming areas invested since 2018, providing up to 250,000 tons of raw fish/year.

Nam Viet Aquaculture currently owns 20,000 pairs of parent fish capable of producing 14 billion fingerlings. With a feed factory with a designed capacity of 800,000 tons/year, Nam Viet Aquaculture is capable of supplying 100% of feed for the company's 150-hectare fingerling farming area.

Nam Viet is also operating 04 seafood processing factories with a total processing capacity of up to 1,200 tons of raw fish/day and fully achieving ISO, Global GAP, HACCP, IFS, BRC, GMP and HALAL quality certifications.

It is known that Nam Viet has announced information on dividend payment in 2023 to the company's shareholders.

Accordingly, Nam Viet agreed to pay 2023 dividends at a rate of 5% in cash, equivalent to shareholders owning 1 share receiving 500 VND and the payment date is December 27, 2024.

With more than 133 million shares outstanding on the market, Nam Viet is expected to spend more than 66.5 billion VND to pay dividends to the company's shareholders.

Previously, from 2020-2022, Nam Viet maintained a dividend payment of VND1,000/share, before halving it to VND500/share in 2023, the lowest dividend ever paid. Part of the reason is because 2023 is a difficult business year for seafood enterprises in general and Nam Viet in particular.

Source: https://danviet.vn/lai-gap-28-lan-vi-sao-thuy-san-nam-viet-van-kho-hoan-thanh-muc-tieu-loi-nhuan-nam-20241023222230083.htm