GMD – NOT ATTRACTIVE WHEN THE ROOM FOR GROWTH IS RESTRICTED
- GMD's main ports in Hai Phong and Cai Mep - Thi Vai areas maintain stable performance in the context that import and export growth is forecasted to be slow. The container throughput forecast for 2023F in Hai Phong and Gemalink (GML) is 1.2 million TEU (+4% YoY) and 1.4 million TEU (+13% YoY), respectively.
- In the long term, GMD has more room for growth thanks to the expansion of Nam Dinh Vu and GML. However, there will be many challenges ahead when the competition is getting fiercer in Hai Phong area and GML phase 2 is still in the process of applying for a construction permit.
- GMD is trading at a 2023F P/E valuation of 13.3x, 32% lower than 5Y average of 17.6x. The valuation has been strongly discounted, suitable for investors who prefer to hold in the medium and long term. We recommend ACCUMULATE GMD with a target price of VND 53,300 per share.
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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