VHC – 4Q20 review [BUY +22%] Earning momentum expected since 2Q21
In 1Q21, we estimate Vinh Hoan’s NPAT will reach VND158bn (-13.2% yoy and -11.7% qoq), mainly hit by the fast qoq decrease of pangasius material price. In 2021, we estimate Vinh Hoan’s 2021 NPAT at VND823bn (+16.7% yoy) thanks to Collagen & Gelatin’s revenue surge and revenue contribution of Sa Giang, delivering higher estimated profit margins than those of fillet-related products. We maintain BUY with TP of VND47,000. Total expected return is 22%.