Friday, June 15, 2007

Vietnam Navico sees yr net up 25% on fish exports

Vietnam's largest fish exporter, Navico, forecast on Friday its net profit would rise by more than a quarter this year to 321 billion dong ($19.9 million), helped by strong sales of catfish to Europe.

Formally known as Nam Viet Joint Stock Co., Navico operates four fish processing plants in the Mekong delta, and accounted for nearly 5% of Vietnam's $3.3 billion of fish exports by 900 exporters last year.

The unlisted firm plans a June 21 initial public offering of 6 million shares, hoping to raise at least $37.2 million. Bao Viet Securities will underwrite the issue.

In a statement via the Ho Chi Minh Stock Exchange , Navico said it expected revenues this year to grow 26% to 3.42 trillion dong ($212 million). Revenues more than doubled last year to 2.71 trillion dong on robust export growth.

January-April net profit rose to 169.22 billion dong ($10.5 million), or 52.7% of the full-year net profit target, Navico said in a statement, but gave no comparative figures.

It forecast a return-on-equity of 48.6% and a dividend payment of 20% this year, with the ROE rising to 51.8% in 2008, and the dividend payout to 22%.

Navico, 60% owned by a family, aimed to increase fish exports, mainly catfish products, to $250 million this year from $163 million in 2006, Chief Executive Doan Toi has said.

European markets, including Russia, accounted for more than half its sales, followed by around 30% to Asia.

Fish and shrimp are Vietnam's fourth-largest foreign exchange earner after crude oil, textiles and footwear. Catfish exports alone are forecast to jump 35.7% this year to $1 billion.

An Giang province-based Navico warned of the risks it faced from contaminated water sources due to the rapid growth of family-based fish farming -- a concern echoed by the industry as a whole.

Exporters also say they face problems with the overuse of chemicals and antibiotics such as chloramphenicol in products bought from local farmers.

Source: Reuters

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