Gemadept early last month announced its plan to transfer 99.98 per cent of shares at Nam Hải Port Joint Stock Company, which directly operates Nam Hải port and Nam Hải dry port (Nam Hải ICD) in Hải Phòng City. — Photo courtesy of Gemadept

The sale of all capital at Nam Hải Port Joint Stock Company can potentially generate earnings of approximately VNĐ150 (US$6.2 million) to VNĐ300 billion for Gemadept Joint Stock Company (GMD).

Gemadept early last month announced its plan to transfer 99.98 per cent of shares at Nam Hải Port Joint Stock Company, which directly operates Nam Hải Port and Nam Hải Dry Port (Nam Hải ICD) in Hải Phòng City.

At present, there is limited information available regarding the partners involved in the deal and the expected profits. However, according to the latest assessment by BSC Equity Research, Gemadept Port could achieve a pre-tax profit of around VNĐ160 billion from divesting its stake in Nam Hải Port.

This profit represents only 9 per cent of the value of the previous transfer deal involving Nam Hải Đình Vũ Port, also conducted by Gemadept in May 2023.

Meanwhile, Vietcap Securities estimated that this deal with Nam Hải Port Joint Stock Company could generate profits ranging from VNĐ150 to VNĐ300 billion for Gemadept.

BSC Equity Research said that the anticipated profits from this new deal would be lower due to the less favourable location of Nam Hải Port, which is situated behind Bạch Đằng Bridge and faces challenges in accommodating loaded ships weighing 20,000DWT or more. Additionally, Nam Hải Port is the smallest port within Gemadept's northern port cluster.

In fact, the number of ships with a tonnage of 20,000DWT passing through Bạch Đằng Bridge has decreased by nearly 40 per cent since the Bạch Đằng Bridge in operation in the beginning of 2023. BSC Equity Research predicted that this downward trend would persist in the future, given the increasing preference for larger ships.

Therefore, Gemadept's decision to divest from Nam Hải Port was a strategic move aimed at enhancing the operational efficiency of its existing ports. Furthermore, it would provide additional resources for Gemadept to focus on projects in the North, particularly the upcoming Nam Đình Vũ phase 3, which is anticipated to commence operations in 2025.

According to BSC Equity Research, if the aforementioned deal proves successful, it is expected to contribute approximately 10 per cent to Gemadept's core profit after tax in 2024. — VNS