Company Insight

Sao Ta Food Joint Stock Company (HoSE: FMC) is one of Vietnam's leading shrimp export businesses, consistently maintaining its position in the top 5 largest shrimp exporters in the country. In 1H2026, FMC recorded a -21% YoY decrease in sales due to the high base level in 2025 and the proactive temporary suspension of frozen shrimp exports to the US due to the impact of tariffs. Entering 2H2026, FMC's business operations are expected to face difficulties in the US market as consumer demand has not improved and there is pressure from overlapping tariffs. However, we believe this is not a completely new challenge and FMC can proactively respond through (1) Diversifying export markets; (2) Focusing on exporting deeply processed shrimp – a product segment not subject to tariffs. Based on the FCFF and PE methods, with a 50:50 weighting, we update our target price for FMC to VND 38,000, corresponding to an upside of 8.3%.