Seafood, textile stocks soar thanks to good business performance
Seafood, textile stocks soar thanks to good business performance
Positive business results together with the expectation of benefiting from free trade agreements helped seafood and textile stocks shoot up in the past year.
Concerning the fisheries industry, pangasius processing companies saw prosperous business results over the past year. Shares of Cuu Long Fish Joint Stock Company (ACL) were traded at around VND10,000 (US$0.43) per share in April, 2018. Closing the trading session of April 10 this year, ACL reached VND39,550 per share, up nearly four times after a year.
In 2018, ACL collected post-tax profit of VND230 billion, about 11 times higher than 2017. The company also exceeded 320 per cent of the 2018 profit plan.
Vinh Hoan Corporation’s shares (VHC) started to climb in the second quarter of 2018 when its quarterly profit doubled compared to the same period of the previous year.
In the following quarters of 2018, VHC also achieved impressive profit results. Therefore, the price of VHC shares soared from VND50,000 per share in early 2018 to VND110,000 per share on November 23, 2018. On Friday, VHC shares were priced at VND89,800 per share. VHC is currently leading the market in export value of pangasius, reaching $378 million in 2018, up 26 per cent year-on-year. In 2018, VHC reported post-tax profit of VND1.4 trillion, up strongly by 138.5 per cent year-on-year.
Similarly, in the past year, shares of another pangasius processor, Nam Viet Corporation (ANV), also rose from VND15,000 per share in August, 2017 to VND30,000 per share at present, equivalent to an increase of nearly 100 per cent. In 2018, ANV reported after-tax profit of over VND600 billion, up 4.2 times compared to 2017.
The company with the most impressive business performance was Camimex Group JSC (CMX), a shrimp producer. CMX shares shot up from around VND5,000 per share in mid-August 2018 to around VND24,500 currently. In 2018, CMX reported after-tax profit of VND78 billion, an increase of 192 per cent compared to 2017. In 2019, CMX also set an after-tax profit target of VND199 billion, a 155 per cent increase compared to 2018.
Shrimp stocks also received a boost from news that the US has exempted anti-dumping tariffs for shrimp exporters of Viet Nam, announced on April 10. Right after the information was released, the seafood stocks rocketed up.
Textile no less competitive
In the context of the escalating US-China trade war, signed free trade agreements have brought about expectations of more orders, the textile industry will benefit greatly. Business results of many companies in the industry recorded growth in 2018, leading to the upswing of textile stocks.
Shares of TNG Investment and Trading JSC (TNG) climbed from VND10,000 per share in early 2018 to reach VND23,100 per share currently, equivalent to a hike of more than 100 per cent. At the end of 2018, TNG achieved post-tax profit of VND180 billion, up by 60 per cent year-on-year.
Another textile and garment stock seeing gains was Thanh Cong Textile Garment Investment Trading Joint Stock Company.
In the second half of 2018, TCM shares had an impressive increase from the bottom of VND15,950 per share to VND23,000 per share. In October 2018, TCM reached its peak over the last two years of VND30,000 per share. At the end of 2018, TCM achieved profit of VND260.4 billion, 1.3 times higher than the same period in 2017.
On Friday, TCM was traded at VND31,550 per share, surpassing the old peak in 2018.
Shares of Saigon Garmex Manufacturing Trade Joint Stock Company (GMC) also increased sharply from VND25,000 at the beginning of 2018 to VND50,000 per share in early this year. GMC collected profit of VND135 billion in 2018, doubling that of 2017.
