Seafood sector – Preview – [NEUTRAL] – 1Q24F Preview: First stages of restoration

In 2M24, the total export turnover of pangasius fish increased slightly by 7.8% yoy, with the U.S market being the standout. Meanwhile, shrimp export turnover recorded a growth of +22.6% yoy, driven by the China, U.S, and Japan markets. In 1Q24F, we believe that the business results of companies in the industry will diverge due to differences in export market structures. For the pangasius fish segment, the U.S market will continue to lead the recovery. For shrimp, exports to the U.S and Japan markets are the bright spots. We maintain a BUY recommendation for VHC stock due to improvements in both export volume and the ASPs of pangasius fish. Meanwhile, we maintain a HOLD recommendation for FMC stock due to concerns about the competitive situation in the U.S and EU markets.