PYN Elite Fund becomes major shareholder of Vietnam livestock major Dabaco

Finland-domiciled PYN Elite Fund has increased its stake in Dabaco Group from 4.96% to 5.79%, becoming a major shareholder of the leading livestock company in Vietnam.

The Finnish fund on May 22 bought in two million shares of Dabaco, traded on the Ho Chi Minh Stock Exchange as DBC, raising its holding in the latter to 14 million shares, according to a filing to the bourse.

During the May 22 trading session, two million shares changed hands via put-through transactions. The transaction value hit VND68.8 billion ($2.7 million), equivalent to VND34,400 apiece.

DBC closed on Wednesday at VND35,100 ($1.38) a share, staying at its 25-month peak. The firm has a market cap of VND8.5 trillion ($334 million), slightly lower than the record high seen in late 2021-early 2022.

DBC’s rally has been driven by rising prices of live hogs, which are moving in a range of VND66,000-69,000 ($2.71) a kilogram, amid a shortage of pork.

Dabaco currently has over 50,000 sows and aims to reach 60,000 sows. The firm targets to build farms for 58,000-60,000 sows by 2025 and 2026 at the latest.

In Q1/2024, Dabaco earned a consolidated net profit of VND72.6 billion ($2.85 million) versus a loss of VND320.73 billion ($12.6 million) in the same period last year. Its revenue rose 40.6% year-on-year to VND3,252 billion.

For this year, the firm plans to make a net profit of VNND729.8 billion ($28.7 million), 29 times that in 2023. Its 2024 revenue is set to increase 14% year-on-year to VND25,380 billion ($1 billion).

Dabaco is proceeding with a plan to sell 80.67 million shares to existing shareholders at VND15,000 ($0.59) a unit. It also plans to issue 12 million ESOP shares at VND10,000 each.