·         In Q3/2201, revenue was VND 476 Bn (+ 65% YoY), coupled with expanded profit margins, strongly driving NPAT-MI to reach VND 93 Bn (+ 302 % YoY). Consequently, accumulated 9M2021 revenue and NPAT-MI reached VND 1,284 Bn (+ 55% YoY) and VND 242 Bn (+ 173% YoY) respectively. This positive business result was mostly driven by stable transported volume growth and solid charter profit with increased charter rates and higher number of vessels leased out.

·         Vessel chartering will remain as a key growth driver in Q4/2021 and 2022F as HAH has entered another time charter contract for Haian Mind. The vessel will be delivered to lessee by mid-November 2021, at a rate of USD 32,000 per day for two years. We like HAH’s move to ramp up chartering segment amid charter rates are hovering at all-time high levels while climbing fuel prices make shipping operation’s profit margins more vulnerable.

·         We expect revenue in 2021F/22F to be VND 1,797 Bn (+ 51% YoY)/VND 2,076 Bn (+ 16% YoY). On the back of saving vessel operating costs and fuel costs due to higher number of chartered out vessels, we expect that gross profit margin of 2021F/22F will be at 33% (+ 1,305 bps)/41% (+ 826 bps). Thereby, 2021F/22F NPAT-MI will reach VND 350 Bn (+ 153% YoY)/VND 538 Bn (+54 % YoY), equivalent to 2021F/22F EPS of VND 6,671/VND 10,248.

·         Using FCFE method and a target P/E of 9x applied to 2022F EPS, we come at a target price of VND 82,900/share for HAH, implying a total return of 19%, as of Nov 11th, 2021, and recommend "Accumulate" the stock.