Company Report: HAH - Domestic Container Shipping Giant
Since the first vessel purchased in 2014, HAH has been expanding its fleet merely every year. As a result, by 2021, HAH owns eight vessels, the largest container fleet in Vietnam, with a total capacity of 11,000 TEU. As a result, it is the market leader in domestic container transportation. We believe that with larger vessels, HAH has advantages over competitors, including 1) getting priority in providing feeder services for MLOs; 2) bidding higher charter rates for large-sized vessels and 3) more stable shipping schedule and higher operating efficiency. Besides, owing the largest container fleet, HAH has capability to cover the most extensive domestic shipping routes, thereby diversifying the source of goods.
The chartering business will have significant growth as HAH has increased the number of vessels for this segment to three vessels, namely Haian Link, Haian East and Haian West. On the back of favorable charter rates and long-term charter of one to two years, we believe the businesses will be the main driver for HAH’s growth in 2021F-22F.
Recovery of transport demand upon the loosening of strict social distancing will fuel the growth of transported volume in Q4-2021 and 2022F. Besides, tight vessel supply coupled with recovery of transport demand will increase freight rates in Q4-2021 as well as in 2022F.
Consequently, we expect HAH’s gross revenue to reach VND 1,675 Bn (or USD 74 Mn, +41% YoY) and VND 2,044 Bn (or USD 90 Mn, 22% YoY) in 2021F and 2022F respectively. On the back of strong growth in the chartering segment, coupled with transport demand recovery and higher freight rates, the NPATMI will be VND 320 Bn (or USD 14 Mn, +131% YoY)/VND 506 (or USD 22 Mn, +58% YoY) in 2021F/22F. EPS will be VND 6,558/VND 10,376 in 2021F/22F.
Using a P/E multiple of 9x (50%) and FCFE (50%), we come up with a fair value of VND 80,300 per share, equal to a total return of 16%, based on the closing price on October 22nd, 2021. We recommend "ACCUMULATING" the stock.
Hai An Transport and Stevedoring Joint Stock Company (HAIANTS) is a Vietnam-based firm, which has been involved in maneuvering the Hai An marine port in Hai Phong City. The Company's regular undertakings are container loading, freight transporting, ship navigating and marine cargo storing. In order to support its business activities, HAIANTS has equipped the Hai An port with various infrastructures and apparatuses, which include piers, forklifts, freighter ships, marine cold warehouses and container stations. The Company's clients are from both within Vietnam and abroad.
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.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.