PVT - Profit margin set to recover in 2H2025 after short-term decline
Q1-FY25: Revenue maintained steady growth in the domestic market, profit were under pressured by freight rates and depreciation costs• In Q1/2025, PetroVietnam Transportation (PVT) reported consolidated revenue of over VND 2,800 billion (+10% YoY). The growth came mainly from higher domestic transport volume, especially crude oil for the Dung Quat refinery after maintenance. The addition of new dry bulk carriers and LPG carriers 2024 also contributed.
• Gross profit margin dropped to 17.7% (vs. 20.7% last year), mainly due to falling international freight rates, especially in MR and chemical tanker segments. Depreciation expenses rose from eight new vessels being added in 2024, pushing down net profit after tax to VND 215 billion (-7% YoY).
Q2-FY25 Outlook: Margins to stay under pressure, recovery expected in H2
• We estimate Q2/2025 consolidated revenue at around VND 3,190 billion (+7% YoY), with shipping contributing over 75% of the total. However, net profit after tax for parent company shareholders is expected to decline to VND 222 billion (-22% YoY) due to continued pressure on margins and rising depreciation.
• Segment performance is mixed: Crude oil tankers and dry bulk carriers remain strong with more volume and new vessels, while product oil tankers, chemical tankers, and LPG carriers may struggle due to lower freight rates.
• We expect international freight rates to have stabilized this quarter, which could support a modest recovery in key shipping segments in the 2H2025 - especially if global supply chains stay stable and ton-mile demand continues to improve.
Valuation & Recommendation
In the short term, we expect PVT’s business performance to improve, supported by higher shipping volumes and recovering transportation demand, despite freight rates remaining below 2023–2024 levels. In addition, geopolitical tensions in the Middle East - while currently easing - remain a key factor to monitor, as they may indirectly support freight rates through potential disruptions to global supply chains.
In the medium to long term, PVT's outlook remains positive, thanks to its effective fleet expansion strategy focused on key segments. This should help the company to improve its operational efficiency and reduce reliance on volatile global freight rates.
Using a blended valuation method (50% P/E and 50% P/B), we estimate PVT’s fair value over the next 12 months at VND 19,900 per share, implying an expected return of 11% based on the closing price on July 09, 2025. We recommend ACCUMULATE for PVT.
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.