'Shrimp king' Minh Phu forecasts $49 mln profit in 2023

Minh Phu Seafood Corporation, Vietnam’s leading shrimp exporter, is expecting consolidated revenue of more than VND17.99 trillion ($767 million) and after-tax profit of nearly VND1.15 trillion (49 million) in 2023, up 9% and up 38% year-on-year, respectively.

In 2023, Minh Phu (MPC) aims to produce 60,000 tons of seafood, according to its 2022 annual report.

Its subsidiaries like Minh Phu Ca Mau and Minh Phu Hau Giang were assigned a revenue target of VND500 billion ($21.32 million) each, Minh Phu Loc An VND117.9 billion, and Minh Phu Kien Giang VND26.2 billion ($1.12 million).

Minh Phu said it strives for the cost of Vietnamese raw shrimp to equal that of India by 2030 and that of Ecuador by 2035.

To achieve the goal, the corporation has a plan to improve the genetics of black tiger and whiteleg shrimp to create seed shrimp with good resistance and good adaptation to disease, weather, and the climate of Vietnam.

"Producing high quality shrimp seed that is resistant to disease and adapted to Vietnam's climate and environment will bring the success rate of Vietnam's shrimp farming industry to over 60% by 2030, and over 80% by 2035," the report noted.

The corporation will also develop extensive and semi-intensive farming models for black tiger shrimp and a high-tech, super-intensive farming model for whiteleg shrimp, which are suitable for each region, with a low price equal to India from 2030 and Ecuador from 2035.

In 2022, MPC recorded revenue of VND16.43 trillion ($691.41 million) and after-tax profit of VND838.6 billion ($35.3 million), up 21% and 27% year-on-year, respectively.

The company fullfilled 87% of its revenue target and 66% of its profit plan. This was the sixth consecutive year since 2017 Minh Phu failed to complete its business plan.

By December 31, 2022, MPC's total assets hit VND10.61 trillion ($446.42 million), up 11% compared to the beginning of the year, mainly due to an increase in inventories.

On the unlisted public company market UPCoM, the MPC price hit VND17,800 ($0.76) per share on Wednesday.

Last July, the company signed a deal with Singapore-based cultivated meat and seafood firm Shiok Meats to carry out research and development on cell-based shrimp products.

Minh Phu has been Vietnam’s largest shrimp producer and exporter for several years. Based in the Mekong Delta’s Ca Mau province, the company has in recent years focused investments on upgrading shrimp farming technology. Its main export markets are the U.S., EU, Australia, New Zealand, Japan and Canada.