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Vinh Hoan Corporation (VHC) is a leading pangasius exporter in Vietnam with a solidly integrated system, strong market position, and reputable brand name. In addition, the company’s management team is in the process of implementing a strategy aimed at moving it up the value chain. VCS believe that the company’s shares are currently undervalued at VND33,300 per share. After our recent visit to VHC in Ho Chi Minh City, VCS reiterate our BUY rating with an upwardly revised target price of VND46,600 per share from VND29,200, which implies an undemanding 6.0x FY11E EPS and 5.3x FY12E EPS.
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