PVT – To expect a significant earnings growth in 1Q2023 but will be a challenge for FY2023
- PVT recorded positive 4Q2022 results with revenue of VND 2,439 bn (up 17.2%) and NPATMI of VND 207 bn (up 5.1%). For FY2022, PVT also posted good performance thanks to a 30.7% in revenue growth from the core business (transportation segment) and VND 292 bn from liquidating Athena vessel (VND 205 bn), Song Hau Eagle. NPAT increased by 30.4% to VND 861 bn in 2022.
- The company keeps expanding its fleet in 2023 and benefits from the increasing freight rates of crude oil tankers as well as oil product tankers from mid-2022 till now. In 2023, PVT plans to invest in 18 vessels with a total value of USD250 mn. However, we believe that PVT is likely to purchase 5-7 vessels for 2023. In addition, the economic crisis may change the current freight rate trend, affecting negatively to the 2023 performance.
- Despite the fleet expansion and freight rate hike, we believe that 2023 profit will be difficult to grow due to the high base in 2022. However, core business is expected to grow and the P/E 2023 is still quite cheap ~ 8.8x, according to our forecast. In 1Q2023, we believe that a growth 30%-40% in earnings, compared to the same period last year, is possible. Therefore, we reiterate a BUY for PVT with a target price of 23,700 VND/share. For FY2023, revenue and NPATMI are forecasted VND 9,215 bn and VND 792 bn, respectively as we assume that BSR will implement the turn around in 2023. Then EPS 2023 is 2,300 VND.
Petrovietnam Transportation Corporation (PV Trans) is a Vietnam-based company engaged in oil and gas marine transportation. It provides transportation of crude oil, petroleum and petrochemicals products. The Company is also involved in multimodal, inland water and road freight transportation, ship leasing and the offering of ship agency and brokerage services. In addition, it provides ship building, repair and maintenance services, as well as cargo handling services, vessel supply services and crew training and supply services. As of December 31, 2012, the Company was a subsidiary of Vietnam National Oil and Gas Group (Petrovietnam), and it had 10 subsidiaries, one joint venture and one affiliate. During the year ended December 31, 2012, 65.6% of the Company's revenue came from the provision of transportation services.
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