Seaport stocks anticipate bright outlook in Q4
Seaport stocks anticipate bright outlook in Q4
Given the positive outlook of export activities in the last months of the year, seaport and logistics stocks are expected to perform well.
A vessel is anchored at the Gemadept port. — Photo gemadept.com.vn |
For the last quarter of the year, export activities are forecast to rebound as inflation in major economies, such as the US and Europe, is cooling down and inventories in importing countries decline.
Demand for goods consumption also increases during the year-end holidays, while Việt Nam benefits from multinational corporations' shifting their production from China to the country.
Moreover, China's move to lower interest rates to revive the economy also opens up hopes for improved consumer demand and production in the near future.
The potential dynamism in export activities will improve the business performance of seaport enterprises, thus increasing the attractiveness of their ticker symbols on the stock market.
The issuance of a draft to increase prices of seaport services by the Vietnam Maritime Administration also provides support for the industry.
The proposed draft suggests increasing the price of container handling services starting from 1 January 2024. Specifically, the price for container handling service is expected to rise by 10 per cent for most ports.
In some cases such as deep-water ports that accommodate vessels with a capacity of 160,000DWT or more or ports using power fueled by renewable energy sources, the price might be raised by 20 per cent from the current level.
Yuanta Securities Vietnam said that the increases will have a positive impact on deep-water ports that accommodate vessels over 160,000 DWT and encourage seaport enterprises to use clean fuel as per the Government's policy.
According to Vietcombank Securities Company (VCBS), the seaport industry continues to benefit from positive factors, including the implementation of free trade agreements (FTAs) between Việt Nam and its trading partners, which are expected to boost import-export activities through tariff cuts.
Meanwhile, the ongoing trend of shifting supply chains to Việt Nam serves as a foundation to boost business operations of seaports, especially feeder ports that handle vessels under 3,000 TEU, the securities firm added.
In its updated report, Mirae Asset Securities Vietnam said that Việt Nam’s seaport and logistics sectors will be the industries that benefit the most from the improvement of Việt Nam-US relations, as the US is currently the largest customer of Vietnamese goods.
After US President Joe Biden's successful visit to Việt Nam, the White House issued a statement announcing a cooperation agreement between SSA Marine and Gemadept on strategic seaport development in southern Việt Nam, including the Cái Mép Hạ logistics centre worth $6.7 billion.
VCBS expects Gemadept’s net revenue and profit after tax this year to reach over VNĐ4.3 trillion and nearly VNĐ2.4 trillion, respectively, representing a gain of 11 per cent and 141 per cent over last year.
On the stock market, Gemadept's shares are traded on the southern bourse and have climbed more than 43.3 per cent from the beginning of the year.
In September, the country's import-export turnover reached US$59.16 billion, of which exports reached $30.68 billion, down 6.3 per cent compared to the previous month, according to the latest preliminary statistics from the General Department of Vietnam Customs.
For the first nine months of the year, the total export turnover dropped 8.5 per cent year-on-year to $258.97 billion.
Việt Nam imported $28.48 billion last month, a decline of 2.9 per cent over the previous month. By the end of September, the country's total import turnover reached $237.33 billion, down 14 per cent over 2022.
As a result, the country's import-export turnover reached $496.3 billion through September. The trade balance reached a surplus of $21.64 billion.
The Ministry of Industry and Trade (MoIT) said that the falls were attributed to weaker orders from major export markets such as the US and Europe as consumers there cut spending on regular and luxury products.
