Individual Clients
Corporate Clients
Update GMD – NEUTRAL
21/08/2024 - 4:57:58 CHGEMADEPT CORPORATION (GMD VN): CORE BUSINESS SHOWED POSITIVE GROWTH IN THE 1H2024
Gemadept Corporation (GMD VND) announced Q2/2024 net sales of VNDbn 1,181 (+29.5% YoY). Gross profit reached VNDbn 542 (+25.9% YoY) with gross profit margin of 45.9%, down 1.3% compared to Q2/2023. Profit before-tax recorded at VNDbn 511 (-76.5% YoY) was largely due to the absence of financial income from port divestments in this quarter. Excluding the divestment, profit before-tax for core business grew by 53% YoY, driven by:
- The seaport segment recorded net sales and gross profit of VNDbn 985 (+44.3% YoY) and VNDbn 440 (+30.4% YoY), respectively. Gross profit margin was 44.7%, down 4.76% compared to Q2/2023.
- Profit from subsidiaries and associates was VNDbn 183 (+216.1% YoY), mainly contributing from Gemalink port. On the balance sheet, the current value of investment in Gemalink was VNDbn 1,734 as of 30th June 2024, + VNDbn 156 YTD.
For 1H2024, GMD recorded net sales and PBTof VNDbn 2,186 (+20.5% YoY) and VND bn 1,219 (-51.1% YoY), achieving 54.7% and 72.3% of the company’s target, and 49.9% and 69.1% of our projections. Excluding financial income from divestment, PBT was VNDbn 896 (+38.2% YoY), achieving 66.4% of the company’s target and 62.9% of our projection.
Comment: the recovery in global trade has accelerated GMD’s growth in Q2, and we believe this factor will continue to be a key driver in the coming period, especially during the peak of the third quarter before cooling down towards the end of 2024.
Additionally, the progress of the two projects, Nam Dinh Vu 3 and Gemalink 2, which will add a total capacity of 2.1 million TEUs/year (+60% compared to the current capacity), will also impact GMD’s long-term growth prospects. As of now, both projects are still in the process of completing formalities and have yet to commence construction. Furthermore, the current progress has not significantly affected the company’s financial performance. We are closely monitoring these projects and will update our business projections if the progress does not meet expectations.
Therefore, we maintain our current 2024F-2026F projections, with the target value for 2024 at VND 84,860 per share based on DCF method. Maintain NEUTRAL rating.
