[HOLD] High competitive pressure


-Gemalink Port - Gemadept's deep-sea port in Cai Mep area - will be put into operation from 2021, with a total capacity of 1.5 million TEU in phase 1. According to the company's expectation, Gemalink will reach full capacity in 2023, which will be the business growth factor of Gemadept in period 2021-2023. We believe that GMD can achieve this goal because: 1) In long term, the Cai Mep - Thi Vai port cluster is expected to continue to be the port cluster with the highest growth rate in Vietnam and it will continue to maintain the double-digit growth; 2) Gemalink is the largest port in Cai Mep area, can accommodate mother vessel with total size up to 200,000 DWT, 3 berths for mother ships and 2 berths for feeder vessels, while rival ports (especially Tan Cang Corp's ports) was almost at full capacity; 3)The Port is closest to the river mouth compared to others in Cai Mep cluster; 4) It is expected that 90% of the cargos will be transshipped by feeder/river vessels to warehouses/ICD for customs clearance, thereby reducing transportation costs; 5)50% of Gemalink's output is guaranteed by CMA-CGM, a capital contributor and one of the biggest shipping companies


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