Seaport companies less affected amid pandemic

HÀ NỘI — Seaport companies still reported positive earnings despite the impacts of COVID- 一 九.

According to Sacombank Securities Joint Stock Company (SBS), due to the pandemic, port throughput has decreased in growth momentum compared to previous years as exports to Europe and the US fell sharply. Key products such as apparel and leather shoes witnessed orders fall more than  五0 per cent.

However, in general, seaports were still among the least affected industries amid COVID- 一 九, SBS said.

According to the Việt Nam Maritime Administration, in the first eight months of this year, the total output of goods through Việt Nam's seaports was estimated at nearly  四 八 五. 三 million tonnes, the volume of container cargo reached more than  一 三. 九 million Teus, up  六 per cent and  八 per cent respectively over the same period in  二0 一 九.

SBS said that the EU-Vietnam Free Trade Agreement (EVFTA) taking effect would boost the development of the seaport and logistics industries in the long term.

The EVFTA would help Việt Nam's exports increase by an average of  四- 六 per cent per year within  一0 years from the date of the entry into force of the agreement.

Đình Vũ Port Investment and Development JSC (DVP) reported net revenue of more than VNĐ 二 三 七 billion (US$ 一0. 二 million) in the first half of this year, down nearly  一 八 per cent, but post-tax profit reached more than VNĐ 一 三 九. 四 billion, similar to the previous year.

Meanwhile, Tân Cảng Logistic JSC (TCL) recorded revenue of over VNĐ 五 一 二. 一 billion, post-tax profit reached more than VNĐ 四 二. 一 billion, up  一 四 per cent and  五. 五 per cent respectively compared to the first six months of  二0 一 九.

Danang Port Joint Stock Company (CDN) recorded revenue of over VNĐ 四 三 九. 六 billion and after-tax profit of more than VNĐ 一 一 三 billion, up  一 七. 五 per cent and  二 六. 六 per cent respectively compared to  二0 一 九.

Other seaport enterprises such as Hải Phòng Port JSC (PHP), Saigon Port JSC (SGP), Hải An Transport and Handling JSC (HAH), Southern Logistics JSC (STG) and Transimex Transportation JSC (TMS) also recorded positive business results in the first half of the year, SBS said.

SBS forecasts that the performance of this group of businesses will decline slightly in the second half of this year, especially for those businesses in the northern region due to increased competitive pressure.

The seaport industry had not been directly affected but would surely be impacted indirectly when the global economy enters a major recession, SBS said.

The appearance of a series of new ports on a large scale led to an oversupply, which would make competition stiffer, especially in key areas such as Hải Phòng port cluster and Cái Mép-Thị Vải port cluster.

In Hải Phòng, two new ports have come into operation including MIPEC port and Vinalines Đình Vũ port.

This means the revenue and profitability of businesses operating in these areas will continue to decline.

However, in general, seaport operators, cargo transportation and warehousing companies were less dependent on loans compared to other industries so they did not have to suffer as much pressure, said SBS.

This was a huge advantage compared to other industries in the current pandemic which is forecasted to last for a long time, SBS said.

In seaport industries, the listed enterprise with the largest debt to asset ratio is Transimex JSC (TMS) with only  二 五. 二 per cent.

That ratio of Hải Phòng Port JSC (PHP), Tân Cảng Logistics JSC (TCL), Saigon Port JSC (SGP) are all lower than  一 五 per cent. Đình Vũ Port Investment and Development JSC (DVP) even reported no debt.

The large amount of cash can help these businesses quickly restore operations when the pandemic is controlled.

According to SBS, with less negative impact from disease, seaport stock prices remain more stable than the general market.

The plunge of the local stock market after the Tết holiday also affected this group but still much less than the decline of the VN-Index, SBS said.

Some stocks even recorded growth such as Vietnam Container Shipping Joint Stock Corporation (VSC), up nearly  二 六 per cent since the beginning of this year. Tân Cảng Logistics JSC (TCL) rose by more than  三 七. 二 per cent, Port of Hải Phòng JSC (PHP) increased by over  一 三. 八 per cent, Danang Port Joint Stock Company (CDN) grew by more than  一 八. 一 per cent and Hanoi Construction Corporation – JSC (HAN) climbed by more than  八. 四 per cent.

SBS said the current difficulties that the seaport industry was confronting were only temporary. Along with the forecast that countries will soon produce a COVID- 一 九 vaccine next year, the industry's recovery is likely to begin in the second half of  二0 二 一, SBS said. — VNS