Some stocks to watch on October 28

► Stock market commentary for the week of October 28-November 1: Short-term risks remain high

Recommendation to increase weight for VHC stock

According to Agribank Securities Company (Agriseco), Vinh Hoan Corporation (VHC) recorded revenue of VND3,293 billion (up 22%) and profit after tax of VND341 billion (up 70%) in the third quarter of 2024. Accordingly, in the first 9 months of the year, VHC's revenue reached VND9,367 billion (up 22%) and profit after tax reached VND870 billion (down 1.5%). Profit in the third quarter achieved high growth above the low base of the same period thanks to the outstanding improvement in gross profit margin, reaching 17.6% in the third quarter of 2024 compared to 10.5% in the third quarter of 2023.

Pangasius exports gradually recover, selling prices improve: According to VASEP, in the first 9 months of 2024, the country's pangasius export turnover reached 1.5 billion USD, up 8% over the same period. In the third quarter of 2024 alone, pangasius exports reached about 544 million USD, up 14% over the third quarter of 2023. Among the markets, the US market recorded positive results, with pangasius exports to this market alone increasing by 32% in September compared to the same period in 2023. Currently, pangasius inventories in the US are lower than in 2022 and 2023, which is expected to help exporters like VHC have more orders at the end of the year when demand increases.

Raw material prices decrease, pangasius export prices on the rise: As of October, pangasius export prices have been on an upward trend as the average pangasius export price to the US increased by 13% and to China by 8% compared to the beginning of the year. With positive signals from major markets, pangasius prices are expected to continue to recover by the end of the year. In addition, the cost of pangasius feed has decreased thanks to more favorable weather conditions compared to 2023, which has also contributed to increasing profit margins.

Expanding the Collagen and Gelatin segment helps diversify the product portfolio: VHC has upgraded an additional Gelatin production line that has been in operation since mid-2024, thereby increasing the capacity of this segment by 50% this year. This is a segment with high profit margins and brings stable business results to the enterprise.

Agriseco expects VHC's business results to continue to recover in the last quarter of 2024 thanks to positive improvements in its core business of pangasius exports. In addition, the business outlook also comes from the ability to improve profit margins when pangasius export prices increase. Therefore, Agriseco recommends increasing the proportion of VHC shares with a target price of VND82,000/share (upside 18.3% at current prices).

Watch recommendation for SZC stock

DSC Securities Company recommends monitoring Sonadezi Chau Duc JSC (SZC) shares, target price 44,300 VND/share based on investment thesis: The emergence of large contracts brings many opportunities: In the context of the compressed supply of industrial parks in the South, areas with good locations are significantly filled with a rate of over 80% and high prices of about 120 USD/m2/cycle, demand will gradually spread to less attractive areas such as Chau Duc Industrial Park. Specifically, SZC has continuously received larger-scale contracts such as Electronic Tripod VN (18ha); Steel Builder VN (7.6ha). With about 500ha left for lease in the future, SZC is capable of receiving leasing demand from both new giants and surrounding satellites.

Huu Phuoc Residential Area has been implemented since 2020, phase 1 has almost completely completed the rough construction. Although the project has been absorbed by about 80% (according to the management board), so far the revenue has only recorded about 30% of the sold volume at a very slow pace. According to DSC's observation, the problem may be that in the project's land there are still areas that have not been cleared (estimated at about 3 hectares), so it is impossible to level and connect the infrastructure, thereby affecting the handover conditions. With SZC possessing sufficient financial resources, the clearance time depends entirely on the Government. DSC expects that, by taking the lead in implementing social housing in Chau Duc at the end of this year, SZC will receive more support from the local government in the issue of site clearance.

Source: https://vov.vn/thi-truong/chung-khoan/mot-so-co-phieu-can-quan-tam-ngay-2810-post1131386.vov