VHC [OUTPERFORM +15.0%] - Prolonged COVID-19 disruptions lengthen recovery path - Update
  • 2021-05-31T17:27:39
  • Company Research
We downgrade our rating from BUY to OUTPERFORM as COVID-19’s disruptions to global container availability and demand for collagen and gelatin (C&G) are more severe than expected. That said, pangasius fillet demand is showing signs of recovery and we believe VHC will continue to lead in this industry as Vietnam has a near-monopoly position in export markets. We also maintain our positive view on the long-term prospects of VHC’s high-margin C&G segment.