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GMD Update – BUY
20/02/2025 - 8:59:39 SAGEMADEPT CORPORATION (GMD VN)
GMD recorded positive financial results in 4Q2024 and throughout 2024, primarily thanks to increased container handling fees and container throughput. Our 2025 forecast remained unchanged with revenue and net profit of VND4,892 bn (+1.2% YoY) and VND1,798 bn (-5.6% YoY), respectively. Growth in 2025 may slow down due to container throughput exceeding design capacity and increased competition from rivals. Given YE2025 target price of VND73,800 per share and a cash dividend of VND1,000 per share, expected total return is 22.3% compared to the closing price on February 19, 2025, of VND61,000 per share. Upgrade our rating from Outperform to Buy.
In 4Q2024, GMD’s revenue reached VND1,412 bn (+36.6% YoY). Gross profit was VND629 bn (+47.8% YoY) with gross profit margin of 44.6%, up 3.4% from 4Q2023. Profits from associates and JVs was VND313 bn (+124.5% YoY), primarily thanks to strong performance from Gemalink and SCS. Pre-tax profit (PBT) was VND351 bn (+38.6% YoY).
For FY2024, GMD posted revenues of VND4,832 bn (+25.7% YoY) and a PBT of VND2,080 bn (-33.9% YoY), achieving 97% of ACBS’s forecast. The decline was due to lower financial income from divestments compared to the previous year. Excluding the divestment income, core operational PBT of GMD was VND1,744 bn (+33.8% YoY).
This positive outcome was thanks to (1) Decree 39/2023/TT-BGTVT which took effect from February 2024 increased GMD’s container handling fees by 9.2% YoY, and (2) strong growth in container throughput at GMD’s port clusters. Specifically:
In 2024, GMD’s container throughput reached 4.4 million TEUs (+47% YoY), accounting for 14.7% of the national market share, up 2.5% from 2023 which significantly boosted the company’s overall revenue. The Northern port cluster and Phuoc Long-Binh Duong port achieved a throughput of 2.6 million TEUs (+32% YoY), helping port operations revenue reach VND4,200 bn (+44.4% YoY) and gross profit reach VND1,964 bn (+55% YoY). Gross profit margin was 46.8%, up 3.1% from 2023. Gemalink port recorded a throughput of 1.7 million TEUs (+77% YoY), exceeding its capacity by 18%. This port yielded a profit of VND816 bn (+197% YoY) which contributed over 60% to total profit from associates and JVs.
