VIET NHAT TECHNOLOGY NUTRITION JOINT STOCK COMPANY

VIET NHAT TECHNOLOGY NUTRITION JOINT STOCK COMPANY (CÔNG TY CỔ PHẦN CÔNG NGHỆ DINH DƯỠNG VIỆT NHẬT) – Rapid Growth with Underlying Profit Challenges

VIET NHAT TECHNOLOGY NUTRITION JOINT STOCK COMPANY, also known as VIJATECCO, has emerged as a fast-expanding enterprise in Vietnam’s animal feed manufacturing industry. Headquartered in Hung Yen Province, the company specializes in producing feed for cattle, poultry, and aquatic animals, while also trading raw materials and engaging in various agricultural and pharmaceutical activities. Since its establishment in 2015, it has quickly scaled up both production and revenue.

In 2024, VIET NHAT TECHNOLOGY NUTRITION JOINT STOCK COMPANY reported impressive top-line figures, with sales climbing to USD 268.07 million, up nearly 40% from the previous year. Total assets reached USD 93.72 million, while working capital remained positive at USD 4.34 million. However, the company’s profitability paints a different picture. Despite rising sales, net profit fell sharply by 85.68% to just USD 88,104, signaling tight margins or rising operating costs that should not be ignored in any credit or investment evaluation.

Equity growth also slowed significantly, increasing by just 0.8% year-over-year to USD 11.13 million, after strong expansion the previous year. This stagnation, combined with the drastic profit drop, suggests that the company may be entering a phase of financial pressure despite its operational growth.

Governance remains closely held, with Mr. TRAN TRUNG KIEN, the Chairman cum General Director, owning 79% of the company. His deep involvement ensures strategic focus but also introduces potential concentration risk, especially in terms of financial oversight and long-term corporate governance. The company is privately held, with a workforce of around 220 employees and a charter capital of USD 15.16 million, of which USD 11.05 million is paid up.

While the company’s aggressive revenue growth shows market traction and operational expansion, the volatility in earnings and flat equity growth raise red flags for any lender or trade partner. It will be critical for the firm to stabilize its profitability and improve capital efficiency to reduce financial risk.