Sao Mai Profit Target Surpassed

3:28:44 PM | 11/20/2018

The business results in the first nine months of 2018 of Sao Mai Group showed that the net profit of its major business fields has grown sharply and Sao Mai is confident of reaching the targets of 2018.

With abundant revenue, Sao Mai Group (ASM) profit in nine months of 2018 was VND957 billion, 8 times that of the same period. As explained by the group, revenue increased mainly due to business in real estate, fish and seafood export. In 2018, Sao Mai Group set a revenue target of VND9,800 billion and after-tax profit of VND890 billion.

IDI – a black horse of Sao Mai Group
A key member of Sao Mai Group, International Development and Investment Corporation (coded IDI) has announced consolidated financial statements for the first nine months of 2018 with net sales of VND4,265 billion, up 13 percent over the same period. In particular, sales of Pangasius products reached more than VND2,400 billion, accounting for 56 per cent of total revenue. Pangasius is the segment that brings the majority of gross profit to the company, accounting for nearly 84 percent of total gross profit in the period.

Sales of fishmeal and fish fat reached VND1,054 billion, accounting for 25 percent. Livestock sales reached over VND700 billion, accounting for over 16 percent. Business results in the first 9 months of 2018 of IDI was reported to be more than VND462 billion after tax, more than twice the profit achieved in the first nine months of last year and completed 80 percent of this year’s plan.

"China is a market that has unlimited opportunities for Vietnamese exporters, in which pangasius is a product that is being consumed very strongly in this country. China's proximity with Vietnam facilitates the trade of goods from both sides. On the other hand, the cuisine of the two countries also has many similarities, so this is also the reason for the Chinese consumption of agricultural products. For many years, China has always been a key market for IDI," Mr Truong Vinh Thanh, Deputy General Director of Sao Mai Group shared.

Strategy to increase market share of fish exports and fish feed
After China, India is considered a potential market with strong growth. With a population of over 1.1 billion and not consuming meat from cattle, seafood is considered the optimal choice and pangasius is the preferred product. Not as easy as the mainland market, this South Asian country still has the "gateway" for IDI fish to penetrate through orders for product lines that are suitable, easy to use. Ranee, fish meal and fish oil will be the strategic products to be associated with the high-end filet line in the Indian market.

Commenting on the results achieved in the first nine months of 2018 and business prospects in the next months to create momentum for next year, Mr Le Thanh Thuan, Chairman and CEO said: In the medium term, especially, from now to 2020, the turnover must reach VND10,000 billion and profit after tax must be at least 10 per cent (equivalent to VND1,000 billion).

In addition, the acquisition of An Giang Tourism Joint Stock Company and Dong Thap Tourism Joint Stock Company is a strategic step to help the Group create strong cash flow as well as realise the plan to increase revenue and profit from opening broad market share in tourism. Sao Mai believes that the business results in 2018 will be impressive, which will help to generate double-digit revenue and profit for the next few years.

Thien Kim