Hai An Transport & Stevedoring Company (HAH) is a pioneer in shipping sector in Viet Nam. Based on DCF methods, we update HAH’s target price at VND 39,000, given a 30% decrease in shipping revenue in 2023F. The average freight rates in 2023 are expected to decrease by 60% compared to 2022 and get balanced. However, half of Hai An’s fleet is leased out for a term 1-2 years at a high fixed rental price so we forecast revenue and net profit in 2023F to reach to VND 2,567 bn (-30% y.o.y) and VND 811 bn (-22% y.o.y), respectively.
Besides, we still see some positive factors in container shipping market, including (1) China is re-opening its economy, which will boost global trade activities, (2) the oil price will trade at an average $80 in 2023F, which will reduce fuel cost for shipping companies.
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