March 22, 2011

Minh Phu Seafood targets net gains to more than double in 2011

Minh Phu Seafood Corp., targets net profit to more than double to VND615.5 billion (US$29.3 million) this year from VND304 billion (US$14.6 million) in 2010, a company official stated Monday (Mar 21).

Minh Phu's revenues will rise more than 50% to VND7.524 trillion (US$361.27 million) this year, Deputy General Director Le Van Diep said.

"Our profit will increase sharply because we will expand the existing farming areas by four times and raise processing capacity by two times," said Diep.

The company, Vietnam's largest exporter of shrimp products, is expected to export 36,000 tonnes of shrimp products this year, up from 23,000 tonnes in 2010, he noted.

It will also operate a new processing plant, located in Hau Giang province, with an annual capacity of 40,000 tonnes of shrimp products from June, he added.

To meet its capital needs, the company is expected to sell 14 million existing shares to Japanese investors and issue an additional 20 million shares later this year, Diep said.

"Some Japanese institutional investors are interested in buying major stakes in the company, which has posted impressive results so far this year," Diep added.

Minh Phu's export value rose 83% from a year earlier to US$33.2 million during the first two months this year, company figures showed. Its shrimp product exports rose 68% to 2,833 tonnes.

Minh Phu Seafood's shares closed up 2.8% Monday at VND25,700 (US$1.23) on expectations that the company will report much higher profits this year.