PROCONCO HAI PHONG BRANCH OF VIETNAMESE - FRENCH CATTLE FEED JOINT STOCK COMPANY

Legal Overview:
PROCONCO Hai Phong is a branch of the Vietnamese - French Cattle Feed Joint Stock Company (TIN: 3600234534-008), legally registered with the Hai Phong Department of Planning and Investment on August 6, 2012. Though it operates as a branch (and therefore does not have separate charter capital), it functions as a significant production and business unit of the parent company, fully owned under the 100% Vietnamese holding entity. The branch is located in CN2.1A, Dinh Vu Industrial Park, Dinh Vu - Cat Hai Economic Zone, Dong Hai 2 Ward, Hai An District, Hai Phong City, Vietnam.

Key Personnel:
The branch is managed by Mr. Hoang Chuong, who serves as the Director. He oversees a workforce of 186 employees, directing operations in livestock, poultry, and aquatic feed manufacturing.

Financial Assessment (in USD):

Credit Analysis:

The financial performance of PROCONCO Hai Phong in 2024 presents a mixed but generally stable profile. On one hand, the company continues to show solid asset growth (+15.51%) and a strong equity expansion (+30.61% YoY), underlining capital reinvestment and balance sheet strength. With equity now standing at over USD 33.45 million, the branch demonstrates a solid capital buffer.

However, the significant drop in sales revenue (down 19.58%) compared to 2023 is a notable risk factor. This decline could reflect challenges in market demand, raw material cost volatility, or supply chain constraints. Furthermore, net profit declined by over 22%, signaling potential margin pressures. Despite the profit downturn, the company still retained a healthy USD 7.84 million in earnings, indicating that it remains profitable and can meet its obligations.

Working capital, while positive at USD 2.93 million, has sharply declined (down more than 80% YoY), raising some concern about short-term liquidity management. This could affect the company’s ability to finance day-to-day operations, especially in a capital-intensive sector like animal feed production.

Credit Recommendation:

Given the company’s strong equity position, consistent profitability, and long-standing operational history (over 12 years), a credit line of USD 1,000 is considered low risk and acceptable. However, due to the decline in both sales and profit, it is advised to monitor the company closely for signs of further weakening in revenue trends or liquidity.

Before extending larger credit facilities, further evaluation by VANGUARD BUSINESS INFORMATION LLC (VBI)is recommended. VBI’s continuous monitoring, verification, and financial risk tools can help ensure ongoing stability and reduce exposure to short-term disruptions in this volatile industry.