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External broker reports(aggregated public sources)

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

Thematic (Sector/Industry)

Despite facing a problem of raw material in 2018, Vinh Hoan's business still prospers in virtue of the favorable conditions of the USD/VND exchange rate, demand and tax policies in its two major markets - the US and China.In the longer term, the growing demand and its market diversification strategy would be the key drivers for VHC's growth. The capacity of culturing and processing will be enhanced because of Tan Hung farm and Thanh Binh factory. The price of raw fish will gradually stabilize when the projects of MARD on the fingerling quality improvement provide large amounts of fingerlings to the market. These are the principle factors that are expected to help the company expand its profit margin in the long run. In addition, the company’s stringently certified aquaculture quality and its superior ability of R&amp;D over competitors will ensure its leading position in the pangasius sector of Vietnam and the world.Based on the closing price of VND 90,000 per share on Sep 19th, 2018 and an expected dividend of VND 3,300 per share for the next 12 months, we recommend ACCUMULATE with a total return of 10%. This target price is adjusted upward compared with our May 2018 report to reflect the potential growth, in the context that the USD/VND exchange rate has risen significantly and the China’s import tax became more favorable.

Despite facing a problem of raw material in 2018, Vinh Hoan's business still prospers in virtue of the favorable conditions of the USD/VND exchange rate, demand and tax policies in its two major markets - the US and China.In the longer term, the growing demand and its market diversification strategy would be the key drivers for VHC's growth. The capacity of culturing and processing will be enhanced because of Tan Hung farm and Thanh Binh factory. The price of raw fish will gradually stabilize when the projects of MARD on the fingerling quality improvement provide large amounts of fingerlings to the market. These are the principle factors that are expected to help the company expand its profit margin in the long run. In addition, the company’s stringently certified aquaculture quality and its superior ability of R&amp;D over competitors will ensure its leading position in the pangasius sector of Vietnam and the world.Based on the closing price of VND 90,000 per share on Sep 19th, 2018 and an expected dividend of VND 3,300 per share for the next 12 months, we recommend ACCUMULATE with a total return of 10%. This target price is adjusted upward compared with our May 2018 report to reflect the potential growth, in the context that the USD/VND exchange rate has risen significantly and the China’s import tax became more favorable.

[Result Update] VHC - Benefits from Market Conditions