GMD - Diminishing Throughput Amid The Pandemic
The near-term outlook of GMD has deteriorated given the COVID-19 pandemic. Nevertheless, we like the stock for its promising long-term potential from new terminals: the deep water port Gemalink and Nam Dinh Vu Phase 2. The success of these ports will be the key earnings growth driver in the next few years as they will contribute a combined capacity of over 2 mn TEU per annum, doubling capacity of GMD’s current port system.
We reiterate our ACCUMULATE recommendation on GMD with a SoTP-derived fair value of VND 22,000 per share, down by 15% from our last call due to the coronavirus’ impact. Based on the market price as of June 1st 2020, total expected return is at 17%.
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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