VSC Initiation report – NEUTRAL

VIETNAM CONTAINER SHIPPING (HSX: VSC)

Vietnam Container Corporation (VSC), established in 1985 and listed on the Ho Chi Minh Stock Exchange (HoSE) in 2008, is one of the key players in port operations and logistics services, playing a vital role in the supply chain network of Hai Phong.

VSC currently operates four ports along the Cam River with a total designed capacity of 1.6 million TEUs per year, ranking second in market share in Hai Phong, only after Hai Phong Port JSC (PHP). Notably, two deep-water ports located downstream—Nam Hai Dinh Vu and Xanh VIP—account for 1 million TEUs per year of this capacity.

In 2024, VSC recorded revenue of VNDbn 2,788 (+27.8% YoY), and gross profit reaching VNDbn 843.5 (+28.9% YoY) with a gross profit margin of 30.3%, slightly improving by 0.3% from 2023. Profit before-tax reached VNDbn 524.5 (+98% YoY), fulfilling 114% of revenue and 164% of profit before-tax plan. The port operations segment stood out as a key contributor, delivering VNDbn 1,404 (+34% YoY) and VNDbn 722 in gross profit (+50.5% YoY), with a notably strong gross profit margin of 51.5%.

VSC’s growth outlook from 2025 is expected to be driven primarily by Nam Hai Dinh Vu Port, which has a designed capacity of 500,000 TEUs per year. This has come as the main growth contributor in recent years, Xanh VIP Port, has already been operating beyond its design capacity. In addition, VSC stands to benefit over the long term from Circular No. 39/2023/TT-BGTVT, effective from February 2024, which allows for improved container handling fees—particularly for transshipment and import-export cargo.

FY2025, we forecast revenue and profit before-tax to reach VNDbn 3,115 (+11.7% YoY) and VNDbn 516 (-1.6% YoY), respectively. Based on the DCF valuation method, we recommend a NEUTRAL rating for VSC stock with a fair value of VND 17,900 per share. Compared to the closing price on March 27, 2025, this valuation implies a potential upside of 7.9%, including a cash dividend of VND 1,000 per share, with a projected 2025 P/E of 11.7x and a 2025 P/B of 1.0x.