VIETNAM MARITIME : Hai An Line - The company that owns the largest container fleet in Vietnam plans to go backwards for the second year in a row.

In 2023, Hai An will record revenue of 2,613 billion VND, down 19% over the same period, profit after tax of 358 billion VND, down 66%.

According to the 2024 Annual General Meeting of Shareholders meeting documents of Hai An Transport and Stevedoring Joint Stock Company (HAH), the company sets this year's total revenue target at VND 3,502 billion, an increase of 34% compared to 2023. However, profits After-tax shares of the parent company's shareholders decreased by 11% to VND 340 billion.

This year, the company plans to receive two more new ships of 1,800 TEU (Bangkok Mark IV). In addition, Hai An also continues to implement port and depot investment projects in the Cai Mep area with an estimated value of 300 billion VND.

Looking back at 2023, Hai An recorded revenue of 2,613 billion VND, down 19% over the same period, profit after tax of 358 billion VND, down 66%. With the results achieved, Hai An's Board of Directors proposed to pay dividends in 2023 in shares at a rate of 15% (ie shareholders owning 100 shares will receive 15 new shares). The expected number of releases is more than 15.8 million units. After the issuance, the company's charter capital will increase to VND 1,213 billion.

Regarding the potential of the seaport and shipping group this year, according to SSI Research, the main topic for the seaport industry in 2024 will be output recovery due to improved import and export demand (especially from inventory replenishment in the US/Europe), while supply will remain stable through 2025.

For shipping businesses, fleet supply will increase significantly in 2024 as the number of new ships delivered is expected to account for 10.4% of total fleet supply, the highest since 2010. According to Clarkson , supply is expected to exceed demand by 3.1% in 2024. However, in the current situation at the Suez Canal, SSI Research expects higher TEU-miles to be able to absorb some of the excess supply and thus That could put less pressure on shipping lines' profits.

Rates are expected to gradually stabilize as supply and demand reach a more balanced point, although still at historically high levels. However, escalating or prolonged Red Sea tensions are considered a supporting factor for cargo transport in an already tight supply and demand situation for oil tankers due to the Russia-Ukraine conflict, accordingly, SSI Research will continue to evaluate in favor of oil tanker shipping groups like PVT benefiting from this topic of geopolitical tension.

Bulk shipping continues to show promise thanks to both supply and demand, boosting vessel-mile output. On the demand side, after a strong recovery in 2023, the growth of the dry bulk industry may be supported by both short-term factors (grain harvest season in the US, shipping through the Panama Canal being delayed). constraints) and long-term factors (Chinese demand for coal and iron, ongoing geopolitical tensions).

On the supply side, the risk of strong supply growth is negligible as the current number of new ships ordered is at a historic low of only 8% of the existing ships. Therefore, the analyst believes that bulk freight rates will remain high and volatile in such an environment, creating both opportunities and risks for bulk carriers such as Vosco and Vinaship.