Shrimp exporter plans return to HCM Stock Exchange
Shrimp exporter plans return to HCM Stock Exchange
Minh Phu Seafood JSC is seeking shareholders’ approval for a listing shuffle from the Unlisted Public Company Market (UPCoM) on Ha Noi Stock Exchange to HCM Stock Exchange this year following a good show of business in 2017.
The decision for approval will be made at its 2018 shareholders’ meeting scheduled for March 9.
Minh Phu Seafood JSC is known as Viet Nam’s king in shrimp production. It had voluntarily cancelled the listing on HCM Stock Exchange on March 31, 2015, for restructuring and to seek more capital from foreign partners. But the delisting did not help in raising more capital and the firm’s business went down.
It incurred a loss of VND7 billion in 2015. However, it rebounded with a profit of VND82 billion in 2016 on a revenue of nearly VND12.1 trillion.
The company planned its official return to the stock market with its listing on UPCoM last October. The stock with the sticker MPC has been consistently rising from VND79,000 (US$3.47) per share on the first trading day to nearly VND102,000 on March 5, valuing the company at VND7.04 trillion ($309 million).
Minh Phu is one of the two largest seafood exporters in Viet Nam. Its export turnover amounted to more than $692.5 billion in 2017, up 30.5 per cent year-on-year and surpassing its annual target by 1.7 per cent, thanks to aggressive growth in the United States (39 per cent) and Japan (23 per cent).
Exports to these two markets accounted for over 62 per cent of the company’s total export turnovers.
The company’s 2017 net revenue rose nearly 41 per cent over 2016 to VND16.85 trillion, while the net profit climbed 772 per cent from VND82 billion in 2016 to VND714 billion by the end of 2017.
Plans to raise capital
Minh Phu is plotting a charter capital hike from the current VND700 billion to VND2 trillion via additional share issues in 2018 and 2019. The new capital is aimed at boosting the company’s financial capacity and supporting its business expansion.
The shrimp exporter has also targeted an export revenue of $800 million this year, an annual growth of 15 per cent. The expected output is 63,000 tonnes, up 13 per cent year-on-year, with a consolidated revenue of VND18.2 trillion and a net profit of VND990 billion in 2018, up 8 per cent and 39 per cent year-on-year, respectively.
The biggest risks for its business expansion will be increasing competition from rivals in other countries, such as India and Indonesia, as well as protectionist policies of major markets, notably the United States.
