Earnings Report /
Vietnam

Gemadept Corporation: China reopening to bolster throughput from June

  • Significant growth in NPATMI in 1Q2022

  • Throughput in April and May declined slightly, but we expect it to grow from June this year

  • We raise our target price for GMD to VND65,700 and recommend Accumulate

Thao Nguyen
Rong Viet
8 June 2022
Published by

GMD posted 1Q2022 revenue/NPATMI of VND880bn (US$38mn)/ VND274bn (US$12mn), +28% yoy/+86% yoy.

While 1Q2022 throughput volume of Northern terminals and Binh Duong Port in the South grew by 14% yoy and 20% yoy, respectively, April and May should see volume cool down before recovering from June following China reopening.

The expansions of Gemalink and Nam Dinh Vu construct a solid foundation for the long-term outlook.

We raise our target price for GMD to VND65,700, offering an upside of 9% compared to the closing price as of 8 June 2022. Thanks to the bright prospect in the long run, we recommend Accumulating this stock when the market has a deep correction.