Logistics heavyweight Gemadept aims for $68.8 mln in 2025 pre-tax profit

Gemadept Corporation, a leading port and logistics company in Vietnam, on Tuesday approved its base business plan for 2025 with net revenue of VND4.85 trillion ($185.4 million) and pre-tax profit from core operations of VND1.8 trillion ($68.8 million).

At the 2025 AGM in Ho Chi Minh City, shareholders also adopted a more upbeat plan for this year, targeting VND4.95 trillion and VND2 trillion in revenue and pre-tax profit respectively.

These targets exclude any one-off gains from asset or capital divestments, which have caused earnings spikes in previous years, said chairman Do Van Nhan.

He noted that for 2025, the final year of the 2021-2025 strategic plan, the company aims to triple its profit compared to 2020.

In the first six months of 2025, the company estimated revenue at VND2.67 trillion ($102 million) and pre-tax profit at VND1.1 trillion ($42.04 million), representing 56.9% and 61% of the respective plans, according to chairman Nhan.

“Business performance in the first half of 2025 is acceptable. However, the uncertainty surrounding U.S. tariff policies is a concern. In early April, Trump's tariff announcement caused panic across global markets, wiping out tens of billions of dollars in value within three sessions. Even GMD, the ticker of Gemadept lost over 20% in value,” Nhan said. “We must always prepare for the best, but be ready for the worst.”

CEO Nguyen Thanh Binh noted that despite good H1 results, the outlook for H2 remains challenging and uncertain.

Chairman Nhan added that 2024 was a favorable and fortunate year for the company, driven by domestic economic growth and robust import-export activity.

A major highlight was Gemadept’s pioneering role as the first company in the maritime sector to be entrusted by the government with implementing a national project to upgrade the Ha Nam Channel, deepening it from -7.0m to -8.5m.

This historic project has helped clear navigational routes, attract shipping lines, increase vessel capacity, reduce logistics costs and time, and enhance the competitiveness of the Hai Phong Port area in general and Nam Dinh Vu Port in particular.

Gemadept also completed its divestment from Nam Hai Port after selling Nam Hai Dinh Vu Port, aligning with the company’s strategy of moving from fragmented investments to centralized management at the Nam Dinh Vu cluster - the largest port complex in northern Vietnam.

Rubber plantation divestment

The company reiterated its commitment to fully divest from its rubber plantation segment in Cambodia this year.

Although the plan has been in place for years, actual execution has lagged. Gemadept has invested over VND1.3 trillion ($49.68 million) in the rubber projects Pacific Pride, Pacific Pearl, and Pacific Lotus since 2011. According to Binh, negotiations are ongoing, with the deal expected to conclude within the year.

In 2024, Gemadept’s port throughput reached over 4.4 million TEUs, up 47% year-on-year. Its net revenue hit VND4.83 trillion ($184.64 million), up 25.6% and exceeding the plan by 21%, while its net profit went down 24% year-on-year to VND1.92 trillion ($73.4 million) due to loss of financial income.

In 2023, Gemadept sold Nam Hai Dinh Vu Port to Vietnam Container Corporation (VSC), earning a windfall profit of over VND2.25 trillion ($85.99 million).

Based on 2024 results, the board of directors proposed a 20% cash dividend, totaling about VND840 billion ($32.1 million), a generous level amid market uncertainties and a gesture of appreciation toward shareholders.

Strong investment in inland waterway transport

Looking ahead to 2030, Gemadept will focus on three pillars: ports, logistics, and inland waterway transport.

In the northern region, Phase 3 of Nam Dinh Vu Port Cluster is 80% complete and expected to be operational in Q4/2025, increasing capacity by over 50% to over 2 million TEUs. The port will be capable of accommodating seven feeder ships simultaneously.

In the south, the company will begin Phase 2A of Gemalink Port in 2025, adding 50% more capacity and targeting completion 18 months post groundbreaking. Gemalink is helping Cai Mep rise to the eighth position globally in port efficiency (World Bank 2025), aiming to become a leading transshipment hub in Asia.

Gemadept will also aggressively invest in inland waterway transport, in line with the sector’s planning.

In 2024, Gemadept successfully issued over 103 million shares at VND29,000 ($1.11) each to existing shareholders, with a small portion sold to new investors at VND45,000, raising over VND3 trillion ($114.65 million).

Plan to buy back 21 million shares

For the first time, the board proposed a plan to repurchase up to 21 million shares, equivalent to 5% of total outstanding shares, reducing the firm’s charter capital from VND4.2 trillion ($160.5 million) to VND3.99 trillion.

The buyback aims to protect shareholder interests when GMD’s market price falls below its intrinsic value. Funding will come from share premium reserves.

It will take place when GMD is traded below 1.5x book value per share, and after approval by the State Securities Commission (SSC).

As of Q1/2025, GMD’s book value per share (BVPS) is about VND30,000 ($1.15). If the stock price falls below VND45,000, Gemadept will spend VND1 trillion ($38.22 million) to buy back shares despite a reduction in charter capital.

This policy follows sharp declines in stock price, which dropped below VND42,000 per share after President Trump's early April tariff announcement.

On the Ho Chi Minh Stock Exchange (HoSE), GMD closed Tuesday at VND56,000 ($2.14) per share.