Gemadept Corporation (GMD) is a pioneer in port and logistics service sector in Vietnam. Based on SOTP methods, we update GMD's target price at VND 61,500. We expect a sustainable growth in revenue and profit in the long-term, due to (1) Gemalink port phase 2 and Nam Dinh Vu (NDV) port phase 2 will be key profit drivers, (2) Provide the full logistics service from North to South.
In 2023, we forecast net profit to rise 73.2% to VND 2,004 bn, which we expect to be mainly driven by the contribution of Nam Dinh Vu port phase 2 and the profit of NHDV port’s divestment. In 2022, GMD announced that it will divest its 85% stake in the NHDV port. We believe that the divestment will contribute significantly to GMD's profit in 2023.
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