Shrimp exporter plans return to HCM Stock Exchange

The decision for listing approval will be made at its  二0 一 八 shareholders’ meeting scheduled for March  九. — Photo minhphu.com

HÀ NỘI — Minh Phú Seafood JSC is seeking shareholders’ approval for a listing shuffle from the Unlisted Public Company Market (UPCoM) on Hà Nội Stock Exchange to HCM Stock Exchange this year following a good show of business in  二0 一 七.

The decision for approval will be made at its  二0 一 八 shareholders’ meeting scheduled for March  九.

Minh Phú Seafood JSC is known as Việt Nam’s king in shrimp production. It had voluntarily cancelled the listing on HCM Stock Exchange on March  三 一,  二0 一 五, 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 VNĐ 七 billion in  二0 一 五. However, it rebounded with a profit of VNĐ 八 二 billion in  二0 一 六 on a revenue of nearly VNĐ 一 二. 一 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 VNĐ 七 九,000 (US$ 三. 四 七) per share on the first trading day to nearly VNĐ 一0 二,000 on March  五, valuing the company at VNĐ 七.0 四 trillion ($ 三0 九 million).

Minh Phú is one of the two largest seafood exporters in Việt Nam. Its export turnover amounted to more than $ 六 九 二. 五 billion in  二0 一 七, up  三0. 五 per cent year-on-year and surpassing its annual target by  一. 七 per cent, thanks to aggressive growth in the United States ( 三 九 per cent) and Japan ( 二 三 per cent).

Exports to these two markets accounted for over  六 二 per cent of the company’s total export turnovers.

The company’s  二0 一 七 net revenue rose nearly  四 一 per cent over  二0 一 六 to VNĐ 一 六. 八 五 trillion, while the net profit climbed  七 七 二 per cent from VNĐ 八 二 billion in  二0 一 六 to VNĐ 七 一 四 billion by the end of  二0 一 七.

Plans to raise capital

Minh Phú is plotting a charter capital hike from the current VNĐ 七00 billion to VNĐ 二 trillion via additional share issues in  二0 一 八 and  二0 一 九. 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 $ 八00 million this year, an annual growth of  一 五 per cent. The expected output is  六 三,000 tonnes, up  一 三 per cent year-on-year, with a consolidated revenue of VNĐ 一 八. 二 trillion and a net profit of VNĐ 九 九0 billion in  二0 一 八, up  八 per cent and  三 九 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. — VNS