Minh Phu sees little love on UPCoM

January 10, 2018 | 10:36

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Regardless of the appreciable rally in business performance over the first ten months of 2017, Minh Phu Seafood Corporation (MPC) saw little eagerness in the security trading on Vietnam’s unlisted public company market (UPCoM).

On December 25, 2017, the market price of the ticker MPC shrank to VND52,900 ($2.32), which was 24.4 per cent down against the initially offered VND79,000 ($3.47) and 54.4 per cent down against the closing price of VND110,000 ($4.83) on the first trading session.

In less than two weeks, the MPC stock saw a mild recovery as it rebounded to VND60,000 ($2.63) on January 5, 2018. Nevertheless, the average volume of matching orders was shy of 1,000 units per session, which critically crippled the stock’s liquidity.

As shown in Minh Phu Seafood’s third quarter financial statement, during the first nine months of 2017, the seafood supplier earned a total revenue of VND10.88 trillion ($479.3 million) and an after-tax profit of VND430 billion ($18.9 million).

Minh Phu Seafood's total debt is nearly triple its total equity

Regarding the October business performance, the seafood processing firm grabbed a total revenue of VND1.78 trillion ($78.7 million) and after-tax profit of VND127.2 billion ($5.6 million), equivalent to 16.5 and 29.5 per cent of the nine-month totals.

In contrast, by the end of the third quarter of 2017, the firm was reported to have total debts worth VND7.13 trillion ($314.3 million), up 21 per cent against the firm’s total debts recorded at the beginning of 2017.

Additionally, the separate security issuance plan the purpose of which was to raise the firm’s equity and diminish the debt over equity ratio appeared sluggish despite being approved by the annual general meeting in 2011. Earlier, MPC’s total debt was reported to be nearly triple the firm’s total equity.

In particular, exported seafood volume over the first ten months of 2017 was 45,371 tonnes, up 24 per cent against the same category in 2016 and 1.1 per cent higher than the planned export volume for the entire year of 2016. Additionally, the soaring market price of prawns was instrumental in the latest notable upturn in the sales revenue of Minh Phu Seafood.

Currently, the average export unit price of Minh Phu Seafood is $12.26 per kilogramme, a $0.44 increase against 2016 and a $0.36 rise compared to 2015.

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