GMD Flash note – BUY

GEMADEPT CORPORATION (GMD VN)

GMD released a positive Q2/2025 earnings report, with revenue rising 26.7% YoY and pre-tax profit increasing 32.5% YoY. For 1H2025, the company achieved 63% of the full-year profit forecast by ACBS. Container throughput across GMD’s terminals continued to outperform average design capacity by over 20%. The company also maintained high gross profit margins despite growing competition in the Hai Phong area and rising US tariffs. According to management, GMD has already prepared flexible operational plans and suitable cargo structures to mitigate the impact. We maintain our previous 2025–2026 forecast, with a target price of VND 73,800/share and cash dividend payout of VND 1,000/share, implying a total return of 27.9% compared to the closing price of VND 58,500 as of July 28, 2025.

Q2/2025 results: Core profit momentum continues, supported by solid container throughput. GMD reported revenue of VND 1,497 bn in Q2/2025 (+26.7% YoY) and gross profit of VND 645.8 bn (+19.1% YoY), with a gross profit margin of 43.1%, which remains solid compared to Q1/2025 and FY2024. Pre-tax profit for Q2/2025 reached VND 677.4 bn (+32.5% YoY). Breakdown by segment:

• Port operations posted revenue of VND 1,308.7 bn (+32.8% YoY), with gross profit of VND 572.2 bn (+30% YoY) and gross margin of 43.7%. Container throughput at Nam Dinh Vu reached 390,000 TEUs (+27.8% YoY), while Phuoc Long-Binh Duong handled 400,000 TEUs (+22% YoY). Gemalink maintained stable volume at 450,000 TEUs, similar to Q2/2024.
• Logistics and other segments recorded revenue of VND 188.2 bn (–3.8% YoY), with gross profit of VND 73.6 bn (–27.8% YoY) and a gross margin of 39.1%.

GMD recorded net revenue of VND 2,774 bn in 1H2025 (+28.6% YoY) and pre-tax profit of VND 1,260.5 bn (+39.6% YoY), fulfilling 57% and 63% of ACBS’s full-year forecasts, respectively.

Looking ahead to 2025–2027, growth will be driven by the Nam Dinh Vu phase 3 project, which is expected to commence operations in early 2026. Once completed, Nam Dinh Vu 3 will expand total designed capacity across GMD’s northern port cluster from 1.2 million TEUs to 1.8 million TEUs per year—an increase of roughly 50% compared to current levels.