With the code TNG of TNG Investment and Trading JSC, PSI expects that the business results of this enterprise in 2024 will continue to maintain growth momentum. Specifically, PSI expects orders to be filled until the end of the year, the textile and garment industry to recover thanks to the cooling of inflation in major export markets and factories meeting the world's green standards.

TNG said it plans to put 45 more production lines into operation (equivalent to a 15% increase in capacity) and recruit 2,000-3,000 more workers to serve the new lines, which shows confidence in the company's order prospects.

For the stock code MSH of Song Hong Garment JSC, PSI expects growth at the end of the year when the value of imported raw materials increases sharply. In the first 5 months of the year, the cumulative import of raw materials for textile and garment activities increased by 13.8% compared to the same period last year, showing the potential for export growth at the end of the year of the enterprise.

According to PSI, Song Hong 10 and Xuan Truong 2 plants have long-term growth potential. The full operation of Song Hong 10 (SH10) and Xuan Truong 2 (XT2) plants is expected to increase MSH's total production capacity by 62% during the 2025-2027 period.

Many stocks in the seafood and textile industries have growth potential in the coming time.

However, assessing the risks for the above two stocks, PSI said that demand for textile products may be low in the coming time due to increasing geopolitical instability and slow global economic recovery.

Regarding seafood stocks, PSI mentioned VHC of Vinh Hoan Corporation. In 2024, PSI expects VHC to achieve net revenue and net profit of VND11,700 billion, up 16.8% year-on-year, and VND1,260 billion, up 29.5% year-on-year, respectively.

Pangasius export prices are expected to recover in the second half of 2024 as consumer demand in major markets gradually increases. In addition, pangasius feed prices are expected to decrease thanks to more favorable weather conditions compared to 2023, helping to improve VHC's gross profit margin.

VHC plans to expand its collagen and gelatin production capacity by 50% to 7,000 tons/year in 2024. Accordingly, the capacity expansion will be the main driving force for this business segment.

Also in the aquaculture industry, with ANV - a stock of Nam Viet Joint Stock Company, in 2024, PSI forecasts revenue and net profit to reach 4,932 and 158 billion VND, up 10.5% and 305% compared to 2023. Gross profit margin reaches 12% in the context of falling raw material prices for animal feed production.

ANV builds a value-added product line with collagen and gelatin from fish skin, through a joint venture with Amicogen. The project is currently running a trial phase 1 with a capacity of 780 tons/year, continuing to expand phases 2 and 3 to 1,200 and 2,400 tons/year, expected to contribute 10% of profits by 2025.

In terms of risks to VHC and ANV stocks, PSI said that demand for seafood products in markets such as the US and China is lower than expected due to slow economic recovery. In addition, selling prices in the Chinese market are increasing more slowly than expected due to competitive pressure from domestic enterprises.

For FMC code - stock code of Sao Ta Food JSC in May 2023, the new Vinfarm farming area with an area of ​​203 hectares will come into operation, increasing the company's farming capacity to about 40% in 2024. This is the basis for PSI to expect that the expected shrimp farming output will reach 12,000 - 15,000 tons in 2024.

In addition, FMC still maintains its competitiveness with Ecuador by developing value-added shrimp products and exporting to Japan, thanks to which, FMC's market share in Japan in the first half of 2024 increased slightly compared to the same period, maintaining at 40-45%.

According to PSI's assessment, with the code MPC of Minh Phu Seafood Corporation, MPC's key export market, the US, has recorded signs of demand recovery in 6M2024. Therefore, PSI expects that the decline in inventories in the US market after the holiday season will help MPC's export activities to the US increase.

Minh Phat factory is expected to be completed and put into operation in 2024, helping MPC increase shrimp production output to 62,220 tons, expected to bring in finished product revenue of about 16,622 billion VND.

However, the risk for FMC and MPC is that demand for seafood products in the US recovers more slowly than expected and shrimp prices are lower than expected.

Thu An