Gemalink port run by logistic firm Gemadept. The company plans to pay dividends in 2020 at the rate of 12 per cent in cash. — Photo gemadept.com.vn
Despite being hurt by the COVID-19 pandemic, logistics firm Gemadept JSC is aiming for an increase in revenue and profit this year.
Gemadept held its annual shareholders' meeting on Wednesday in HCM City.
In an optimistic scenario, the company aims to achieve revenue of VND2.8 trillion (US$121.3 million) and pre-tax profit of VND700 billion, up 7 per cent and 37 per cent respectively compared to 2020.
In an average scenario, revenue is estimated at VND2.7 trillion and profit before tax would be VND630 billion, up 4 per cent and 23 per cent, respectively compared to last year.
In 2021, Gemadept aims to continue key projects to expand its scale and create a premise for long-term growth plans for 2021-2025.
The second phase of the Gemalink deep-water port project in the southern province of Ba Ria-Vung Tau will span an area of 39 hectares with a total investment capital of VND4.2 trillion and the capacity of 900,000 Teus per year. It is expected to be constructed in the fourth quarter of 2021, putting it into operation from 2023.
Nam Dinh Vu Port project - phase 2 is expected to start construction in 2021 and be put into operation in 2022. The scale of the Nam Dinh Vu Port phase 2 and 3 will be up to 44ha, with a total capital investment of VND2 trillion to VND4.5 trillion.
Germadept will also develop new projects, including the logistics and inland container depot (ICD) centre in the south, with a scale of 10 hectares and a total investment of VND1.2 trillion. It will focus on researching and investing in seaports, air cargo ports, inland waterway ports, logistics centres, and industrial parks.
The company has submitted to its shareholders a plan to pay dividends in 2020 at the rate of 12 per cent in cash.
The company also submitted to shareholders a plan to issue shares under the employee stock ownership plan (ESOP) for managers and employees who have made outstanding contributions to the company's development in 2021-2025. The issuance rate in a year shall not exceed 1.5 per cent of the total number of shares outstanding in that year.
If in a year the company does not complete its pre-tax profit goal, ESOP shares will not be issued. If 100 – 110 per cent of the profit plan is completed, 1.2 per cent of outstanding shares will be issued. If the completion rate is 110 per cent or more, 1.5 per cent of the outstanding shares will be issued.
Although the COVID-19 pandemic has caused serious damage and disrupted the global supply chain, Gemadept still reported both revenue and profit exceeding the plan set at the 2020 shareholders' meeting, reaching VND2.6 trillion and VND513 billion, respectively.
Port operations was the core activity with revenue reaching VND2.17 trillion, accounting for 83 per cent of total revenue. Revenue from logistics and other activities reached VND434 billion, up 42 per cent year-on-year and accounting for 17 per cent of total revenue.
In 2020, the enterprise invested in upgrading infrastructure and modernising equipment for Binh Duong Port, Nam Hai Dinh Vu Port, Nam Dinh Vu Port and Gemadept Dung Quat Port, completing construction and trial operation of the Gemalink deep-water port – phase 1, putting into operation from the beginning of the first quarter of 2021.
At its rubber plantations, the enterprise has stopped planting new trees because the company plans to focus more on the core areas of port operation and logistics. It is seeking partners to transfer its rubber projects to.
Regarding the real estate sector, Gemadept has two complex projects, namely the Saigon Gem project in the central area of District 1, HCM City and a 5-star hotel project in Vientiane in Laos.
The Saigon Gem project is in the process of completing legal procedures to start construction.
The project in Vientiane has an area of 6,715m2 and is in the construction phase of the foundation and tunnel.
After completion, the Lao project will provide about 231 5-star hotel rooms in Vientiane. For these two real estate projects, the company is looking for potential partners for cooperation. — VNS