GMD - A Temporary Setback Before Substantial Growth Next Year
The Government’s rigid approach to contain Covid-19 has crippled production activities, hampering trade performance of Vietnam in most part of Q3-2021. Furthermore, worldwide port congestion is disrupting shipping schedule and frequencies. While these issues will temporarily drag GMD’s throughput volume in Q3-2021, the Government’s move to reopen the economy, coupled with the continuing recovery of global trade and port traffic as vaccination against COVID-19 progresses worldwide lead us to believe the throughput volume is likely to pick up in Q4-2021 and surely further recover in 2022F. We are expecting a 57% jump in PBT in the next year on the back of the low base in 2H-2021F and GML’s enhanced profitability.
As we believe that the long-term outlook of GMD remains intact, a dismal Q3-2021 profit growth should create an opportunity to ACCUMULATE the stock, the target price of which is estimated at VND55,000 per share, offering an expected total return of 10% as of the closing price on October 15th, 2021.
Gemadept Corporation is a Vietnam-based shipping company engaged in the marine freight transportation industry. The Company offers multimodal freight transportation services, including containers and oversize freight, by deep sea, inland water, land and air. The Company is also involved in the operation of marine ports, river ports and airports, as well as the provision of cargo handling services. Other activities include the provision of logistics services, the operation of warehouses and storage yards, liner agency, container agency, freight forwarding, ship building, vessel and transportation equipment leasing. In addition, the Company develops commercial properties and plants rubber trees.
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
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