Rice exports reached nearly 1 billion USD in the first 3 months of the year, related stocks quietly broke out

Most of the stocks in this industry group have prospered in the past few months, increasing several tens of percent in market price.

According to data announced by the General Department of Customs, the export turnover of Vietnamese goods in the first quarter of 2023 decreased by 12%, reaching more than 79.3 billion USD. In which, agricultural products are still a bright spot when the decrease in the first 3 months of the year is lower than the general decrease, even some names have good growth upstream. In particular, rice is a rare name that still maintains the growth rate in both output and export turnover from the beginning of 2023 until now.

After the first 3 months of the year, Vietnam’s rice exports recorded an output of nearly 1.9 million tons, worth more than US$981 million, equivalent to an increase of 34% over the same period last year.

This is also the highest rice export turnover in the last 6 quarters, thereby making rice the largest export item in March and the third largest in the first quarter of 2023 of agricultural products.

Along with the above positive information, the movements of rice stocks have also prospered in the past few months. TAR shares of Trung An Hi-tech Agriculture increased 28% from the beginning of the year to VND 13,900/share; Loc Troi’s LTG is currently VND 29,500/share, up 26% from the beginning of the year; PAN Group’s ticker PAN increased 19% to 17,800 VND/share.

Similarly, NSC of Vietnam Seed Corporation increased slightly by 3% to 73,700 VND/share.

The positive movement of rice stocks was recorded when the business results in 2022 of enterprises in the industry showed many contrasting colors.

Specifically, Trung An High-Tech Agriculture (TAR) recorded a net revenue of more than VND 3,798 billion in 2022, an increase of nearly 22% compared to 2021 and also the highest revenue level of TAR since 2016. , high costs caused the profit after tax for the whole year to decrease by nearly 28% to 70 billion dong and only completed 63.6% of the profit plan.

Loc Troi achieved revenue of more than 11,690 billion VND in the previous year, up 14%. This is also the highest revenue in the Company’s history thanks to the growth of 60% in the food segment. However, the cost burden also made the net profit in 2022 still go down 1% over the same period, reaching 413 billion dong.

More “disordered”, An Giang Import and Export (Angimex, code: AGM) recorded revenue of 3,454 billion dong, down 12% over the same period. As a result, Angimex has a loss after tax of 139 billion dong while in 2021 is profiting 45 billion dong. This is the record loss in Angimex’s history.

Breaking through, the PAN Group recorded a revenue of VND 13,655 billion in 2022, up 48% over the same period. Profit after tax was recorded at VND 794 billion, increased by 55% compared to the previous year and exceeded 5% of the set profit plan.

Export rice prices continue to increase in 2023

In the updated rice industry outlook report, VnDirect believes that world rice demand will remain high in 2023 due to political and economic uncertainties along with unresolved conflicts between Russia and Ukraine. , pushing up the demand for rice reserves.

Besides, climate change is still affecting rice supply in many countries, especially the Philippines (flood) or China (drought). In 2023, due to the effects of drought, China’s rice production is forecast to decrease by more than 3 million tons compared to 2022, to about 145.5 million tons. This is an opportunity for rice exporting countries, including Vietnam.

Rice export prices are expected to continue to increase in 2023 due to 1) increasing demand for food stocks in many countries, 2) India has no plans to lift the ban on broken rice exports or remove tariffs. % of white rice exports in 2023 as they are still trying to contain the rise in domestic rice prices, 3) Vietnam is focusing on producing high quality rice to match global consumption trends, and 4) many rice growing regions have switched to other more profitable crops, which may lead to a reduction in rice production in 2023.

However, Vietnamese rice will have to compete with Thai rice in 2023. According to the Thai Rice Exporters Association, Thailand’s rice exports to the Philippines are expected to double by 2023 as Vietnam is growing. face constraints on rice export capacity.

In addition, the industry risk is that India’s cancellation of the rice export ban will put competitive pressure on Vietnamese rice and reduce export prices. Diversification of crop structure and salinity intrusion may affect the area under rice cultivation. Rising fertilizer prices affect farmers’ incomes, which can also lead to a reduction in rice acreage as they switch to other crops.

Phuong Linh/Market Lifestyle