Investment Recommendation

X-Stock | VHC 68,500 +20%: Recovery Gains Traction

Date

12/06/2026
Security code

VHC
Company

Vinh Hoan Corp.
Expert name

Trần Nguyễn Tường Huy
Language

Tiếng Anh
Number of Downloads

111

Detailed report

UPDATE ON BUSINESS RESULTS

Q1/2025 business results: Net revenue and NPAT-MI reached VND 2,955 billion (+12% YoY) and VND 266 billion (+38% YoY), respectively.

1. Revenue improved thanks to contributions from the pangasius segment = VND 1,546 billion (+14% YoY) and by-products = VND 519 billion (+17% YoY), amid recovering demand in the U.S. market. Specifically:

• Total export volume reached 16,8 thousand tons (-4% YoY), mainly because the company proactively adjusted its market mix: reducing exports to China - a market with low profit margins - and prioritizing higher-value markets, particularly the U.S., where export volume reached 8,9 thousand tons (+6% YoY).

• Average selling price (ASP) reached USD 3,1 thousand/ton (+5% YoY), of which the export price to the U.S. increased by +12% YoY..

2. NPAT-MI increased strongly by +38% YoY, mainly thanks to: (1) gross profit margin improving from 12.7% to 14.6% (+1.9 ppts), supported by higher ASP and the strategy of shifting exports toward markets with higher profit margins; and (2) SG&A expenses are being well controlled, remaining at around 4,8% of revenue.

3. Other update: In 4M2026, VHC recorded export volume = 26 thousand tons (flat YoY, achieving 30% of BSC's forecast).

BSC’S ASSESSMENT

Net revenue and NPAT-MI reached 23%/18% of BSC's cumulative 2026F forecast, respectively. We believe the main growth driver comes from the U.S. market, following the U.S. Supreme Court's rejection of the IEEPA tariffs. Currently, the temporary import tariff is 10% under Section 122, lower than the previous 20%, helping encourage U.S. importers to rebuild inventories. On the other hand, earnings were lower than our forecast as the gross profit margin reached only 14.6%, down 2.5/3.3 ppts compared with our 2026F forecast and Q4/2025, amid rising raw material costs and logistics costs.