"King of shrimp seed" is preparing to put more than 134 million shares on Upcom stock exchange: It once valued equal to Minh Phu.
In the shrimp industry, although not among the top in revenue, Viet Uc has an exceptionally high gross profit margin. Last year, the company's gross profit margin reached more than 56%.
?Recently, on September 29, Vietnam Securities Depository and Clearing Corporation (vsd.vn) announced the issuance of a securities registration certificate and stock code to Viet Uc Seafood Joint Stock Company.
?Accordingly, Viet Uc registered to trade nearly 134.5 million shares on UPCoM with the stock code VUG. Equivalent to charter capital of nearly 1,345 billion VND.
?Starting from September 29, 2023, VSDC will receive custody of the above registered Shares.
?Viet Uc Seafood Joint Stock Company, known as the "king of shrimp seed". In 2022, Viet Uc was approved by the general meeting of shareholders with a plan to offer shares to the public to increase charter capital and list shares on the Ho Chi Minh City Stock Exchange (HOSE). However, this plan was not successful.
?Seafood exports show positive signs
Recently, seafood export data in September are also gradually showing positive signs. The Vietnam Association of Seafood Exporters and Producers (VASEP) said that in September 2023, Vietnam's seafood exports are estimated to reach 862 million USD, equivalent to the same period in 2022. Accumulated until the end of the third quarter of 2023, Seafood exports reached over 6.6 billion USD, down 22% over the same period last year.
?In September, a number of key products regained balance compared to the same period last year. In particular, shrimp and tuna exports both reached levels equivalent to September 2022. Accumulated until the end of September 2023, shrimp exports reached 2.55 billion USD, still 25% lower than the same period in 2022. However, export results in recent months have shown signs of recovery compared to months before. The two main markets, the US and China, have begun to increase demand and exports to these two powers have both recorded positive growth in the past 2 months.
?The market is showing signs of getting better, especially in the fourth quarter, so if there are no other changes, and raw material sources do not decline sharply, VASEP forecasts that seafood exports in 2023 can bring in revenue. about 9.2 - 9.3 billion USD.
?Valuation is on par with Minh Phu
In the shrimp industry, although not among the top in revenue, Viet Uc has an exceptionally high gross profit margin. Last year, the company's gross profit margin reached more than 56%, compared to industry-leading companies in terms of revenue such as Minh Phu, Stapimex, Sao Ta, and Camimex, which are only around 10 - 20%.
?The reason Viet Uc achieves high gross profit margin is because they focus on the shrimp seed segment. "King of shrimp seed" holds 30% of Vietnam's shrimp seed market share, leading the industry, according to information from the company.
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?Last year, revenue from shrimp seeds contributed 80% of Viet Uc's total revenue. If we separate the shrimp seed segment for consideration, the gross profit margin reaches 79%.
?High gross profit margin also helps Viet Uc's after-tax profit margin on revenue to be extremely impressive. Last year, the company achieved ROR (return on revenue) of 13.8%, compared to 5 - 7% of other units in the same shrimp industry.
?In the past, Viet Uc also made a strong impression with the efficiency achieved on capital. In 2020, basic earnings per share (EPS) reached nearly 30,000 VND. Even a year earlier, the company's EPS was up to nearly 48,000 VND. The reason was that the charter capital of the "shrimp seed king" at that time was just over 103 billion VND, equivalent to 10.3 million shares.
?In 2018, STIC investor group (Korea) spent 764,843 VND per share, acquiring 9.8% of Viet Uc's equity capital. The valuation of the "shrimp seed king" is about VND 7,400 billion. The current capitalization of the leading enterprise in the shrimp industry, Minh Phu (MPC), is about VND 7,800 billion.
?Viet Uc's EPS phenomenon ends in 2022, when the company pays stock dividends at a "huge" rate of 120%, meaning 1 unit of shares owned receives 12 units of dividend shares. The source of dividends comes from undistributed after-tax profits.
?By the end of 2022, Viet Uc has more than VND 2,300 billion in undistributed after-tax profits, accounting for 88% of total capital. The company does not use debt.
?The dominant ownership ratio at Viet Uc belongs to the family of founder Luong Thanh Van, an overseas Vietnamese who returned to Vietnam to do business in 2001.
?As of December 31, 2022, Mr. Luong Thanh Van and his wife, Ms. Nguyen Kim Thua, owned 13.4% and 39% of Viet Uc shares, respectively, according to the audited financial report. The other two major shareholders at Viet Uc are Viet Uc Hong Kong and Lotus Asia Investments, holding 11.39% and 7.59%. The financial report also shows that the ownership rate of Viet Uc employees at the end of 2022 is 17.24%.
?Although not officially standing up, the ownership rate of Mr. Luong Thanh Van's family in Viet Uc is much higher than 52.4%. In fact, Viet Uc Hong Kong is the company related to this family.
?In addition to the investment of the STIC shareholder group in Viet Uc in 2018, shareholders of SSI Securities Joint Stock Company including Daiwa - Ssiam Vietnam Growth Fund III and SSI Fund Management Company hold a total of 1.67% of Viet shares. Australia. (CafeF, 04.Oct., Huyen Trang according to “Nhip Song Thi Truong” news.)
TKL trslted ([email protected])