In the third quarter, seaports in the South and North regions were more or less weakened due to the impact of social distancing, while port enterprises in the Central region seemed to take advantage of the exploitation of super-heavy cargo. and reported triple-digit gains.
In the context of complicated developments of the COVID-19 epidemic, especially in the southern provinces in the third quarter, enterprises in the transport and seaport industries still achieved positive business results.
Analysts say that COVID-19 vaccination campaigns have helped Vietnam’s main trading partners reopen their economies. In parallel, there are opportunities from the signed Free Trade Agreements, supporting Vietnam’s export orders, leading to the growth of cargo traffic through seaports.
Meanwhile, in the domestic market, the shortage of containers pushed up freight rates, helping logistics enterprises, including seaports, benefit greatly.
The enterprise that recorded the strongest growth in the third quarter was Hai An Transport and Loading Joint Stock Company (code: HAH) – the leader in the container transport market with a total fleet capacity of nearly 11,000 Teus.
Last quarter, revenue and profit of HAH increased by 65% and 370% respectively over the same period last year. This is also the quarter with a record profit of over hundred billion since the listing of HAH. Gross profit margin improved from 15.6% in the same period to 29.4% this quarter, but still down slightly from 31% in the second quarter.
Source: Collected from HAH’s quarterly financial statements.
At the same time, HAH stock attracted cash flow from the market, the stock price increased sharply from the area of 26,000 VND/share at the beginning of June and sometimes surpassed the price range of 70,000 VND/share.
The port area at both ends of the South – North is weakened because of COVID-19, the Central port keeps its growth momentum
The leading enterprise in the seaport industry, Gemadept Joint Stock Company (code: GMD), also reported an increase in profit in the last quarter, although import-export activities and transport volume were somewhat weaker compared to the previous quarters.
Cai Mep area (Ba Ria – Vung Tau) still maintains growth and Gemalink port follows quite closely the progress. Meanwhile, Hai Phong port group was less affected and grew positively thanks to new shipping routes, helping to compensate for the southern region, the report of SSI Research said.
Revenue in the quarter increased by 5% and the recognition of a profit of nearly 68 billion dong (double the same period) from joint ventures and associates helped Gemadept report an increase of nearly 34% in profit after tax to 162 billion dong.
Although the southern region was affected by social distancing, business administration expenses also recorded an increase of 81% to more than 56 billion VND, Saigon port (code: SGP) – a unit serving the areas of HCMC Ho Chi Minh City, the vicinity and the Mekong Delta nearly doubled profits in the same period. As a result, the company has exceeded 10% of the profit target for the whole year.
At the end of July, Cat Lai port (code: CLL) – the largest seaport in Vietnam, accounting for nearly 50% of the country’s container import and export market share was the first port facing the risk of congestion after three weeks in Ho Chi Minh City. Ho Chi Minh City implements social distancing. At that time, the cargo capacity at Cat Lai Port always reached the peak of capacity, the capacity for imported goods exceeded the allowable limit.
After that, policies were introduced to solve the congestion situation, helping the rate of goods in stock at Cat Lai Port to be brought back to a safe level, currently only about 85% in mid-October.
As a result, Cat Lai Port’s third quarter revenue decreased by 50% to VND 59 billion. Due to the reduction in administrative expenses and additional financial revenue, the profit of Cat Lai Port only decreased by 6% to 24 billion.
Containers are waiting to dock at Cat Lai Port, Ho Chi Minh City. (Photo: Government Newspaper).
In contrast, two enterprises representing the central port area, Quy Nhon Port (code: QNP) and Da Nang Port (mx: CDN) have a triple-digit increase in profit, 338% and 169% respectively. , partly because these localities are less affected by the disease. As for Quy Nhon Port, because the company exploits super-heavy goods, the revenue is pushed up.
As the “cradle” of shipping in the North, as well as the largest trading port in this region, the business results of Hai Phong Port (code: PHP) are flat over the same period.
Meanwhile, at Dinh Vu Port, container throughput in the third quarter reached 150,382 Teus, a slight decrease compared to the second quarter and the same period of 2020 when facing the consequences of COVID-19 and adverse weather.
The company still maintained a growth rate of more than 10% in revenue, thanks to the management’s adjustment in the strategy of attracting customers to increase the quantity of goods being delivered to the yard, as well as attracting more retail customers to perform packing and unloading services at the yard. , which helps to increase the initial revenue in.
In addition, in September, there was additional financial revenue from dividends of SITC-Dinh Vu Logistics Co., Ltd., so profit after tax increased by 65% to 86 billion dong.
The prospect of the seaport industry is always associated with import and export activities. Therefore, Agribank Securities (Agriseco) believes that export groups will have a positive recovery in the post-pandemic period of economic reconstruction. Experts estimate that exports will continue to grow by double digits in the last months of this year and next year.
As for SSI Research Securities, the increase in freight rates has taken place on a large scale, in which, each route South – North increased from 70 to 160% compared to the beginning of 2021. Freight rates also increased in the stage of container transportation. empty in many routes from 20% to 50%, in the international route Hai Phong – Hong Kong (China) increased by 25%.
Analysts also assessed that the demand for container transport is expected to gradually increase again after the social distancing period, while the supply is scarce because many domestic container ships have been leased to the international market.
T&G International Joint Stock Company
Address: 352 Hue Street, Le Dai Hanh Ward, Hai Ba Trung District, Hanoi
Hotline: 0345786803
Email: hrm@tginterjsc.com
Website: http://tginternationaljsc.com
