Logistics enterprises grow strongly in Q1, boosted by FTAs

Vietnamese logistics enterprises reported outstanding business results in the first quarter of 2021.
Logistics enterprises grow strongly in Q1, boosted by FTAs hinh anh 1The Port of Hai Phong JSC recorded a growth of 41.7 percent in profit after tax in Q1. (Photo: haiphongport.com.vn)
Hanoi (VNS/VNA) - Vietnamese logistics enterprises reported outstanding business results in the first quarter of 2021. 

In the quarterly financial report, Transimex Joint Stock Company (TMS) said that its net revenue jumped 104.9 percent year-on-year to nearly 1.1 trillion VND.

As cost of goods sold increased during the period, Transimex’s gross profit rose 55 percent against same period last year to 112.56 billion VND. After diminishing expenses, its profit after tax reached 101.2 billion VND, up 75.7 percent. 

Transimex is a logistics service provider with businesses in international freight forwarding, warehousing, domestic transportation and distribution.

TMS stock also witnessed impressive performance. On May 14, TMS shares, listed on the Ho Chi Minh Stock Exchange (HoSE), traded at 49,700 VND, up nearly 37.3 percent since the beginning of the year. 

The leading enterprise in the seaport industry, Gemadept Corporation (GMD), also posted good results in the first quarter with net revenue of nearly 687.5 billion VND, up 14.4 percent over last year. Of which, port operation activities accounted for 85 percent of total revenue, with the rest from logistics and office leasing.

Higher revenue led to a strong rise of 40.2 percent in profit after tax to over 171.8 billion VND. 

GMD shares, also listed on HoSE, finished May 14 at 36,400 VND per share, up nearly 10 percent compared to earlier this year.

In the first quarter, Dong Nai Port JSC (PDN) posted net profit of over 144 billion VND, up 48 percent year-on-year thanks to higher revenue from port operation activities as the COVID-19 pandemic has been contained. The Vietnamese economy is entering a state of operation under normal conditions. PDN shares, trading on HoSE, also increased slightly by 3.1 percent compared to the beginning of the year.

Meanwhile, Port of Hai Phong JSC (PHP) said that in the first quarter, the company's total cargo volume reached 7.126 million tonnes, exceeding 4 percent of its business plan. This led to an increase of 16.1 percent in revenue to 518.3 billion VND. The company’s profit after tax also climbed 41.7 percent to 173.2 billion VND. 

In March, the number of ships passing through Hai Phong Port reached 217, equaling 110.2 percent over the same period last year. As of March 31, the number reached 585 ships.

As the maritime channel in Hai Phong has its standard depth (-7.0m) published, shipping lines have increased the amount of goods imported and exported on each trip, especially for containers. 

On the Hanoi Stock Exchange, PHP shares rose 6.8 percent from the beginning of 2021.

Another logistics company with good results in the first quarter was Petrovietnam Transportation Corporation (PVT).

During the period, the company recorded net revenue of over 1.7 trillion VND, with profit after tax of nearly 173.8 billion VND, up 8.8 percent and 94.6 percent, respectively. Its gross profit margin jumped from 14.3 percent to 15 percent.

On HoSE, PVT shares ended May 14 at 16,500 VND, a growth of 13.4 percent compared to the beginning of 2021.

Boosted by bright prospects of the industry, port stocks were also supported by bullish momentum. 

According to SSI Securities Corporation (SSI), the port and logistics industry had very positive developments in 2020, with a growth of 42 percent.

This securities company assessed that the bullish sentiment in the port and logistics stocks was largely due to the expectation of Vietnam's trade growth, helped by the positive impact of signed free trade agreements, specifically, the European-Vietnam Free Trade Agreement (EVFTA) and the Regional Comprehensive Economic Partnership (RCEP).

Investors' expectations for growth in foreign direct investment (FDI) thanks to the wave of supply chain diversification and production is also supporting the industry./.