Viconship plans more seaport M&As in northern Vietnam

Container Shipping Joint Stock Corporation (Viconship), a leading seaport operator and service provider in Vietnam, intends to invest VND1 trillion ($39.34 million) in a deep-water seaport in the northern region this year.

The seaport project will be located in Lach Huyen district of the northern port city of Hai Phong, according to Viconship’s 2024 AGM held on Monday.

Listed on the Ho Chi Minh Stock Exchange (HoSE) as VSC, the firm is also planning a maximum of VND500 billion ($19.67 million) for financial investment activities in 2024.

Notably, it aims to wholly acquire Nam Hai Dinh Vu Port Company Limited (NHDP), which operates Nam Hai Dinh Vu port with a yearly capacity of 500,000 TEUs in Hai An district, Hai Phong. Last year, Vinconship acquired a 35% stake in NHDP for VND1 trillion ($39.34 million).

To implement its plans, VSC will mobilize capital from individuals, companies, and credit institutions through cooperation contracts, joint ventures, loans, or private placement/public offerings.

This year, the company will also issue a maximum of 14.3 million sharers, or 4.99% of outstanding shares, under the employee stock ownership plan (ESOP) at a price of no less than VND10,000 ($0.39) apiece, with shares restricted from transfer for at least one year.

Regarding its 2024 business targets, VSC is gunning for VND2.45 trillion ($96.27 million) in revenue and VND320 billion ($12.57 million) in pre-tax profit this year, up 11.5% and 20.8% year-on-year, respectively. VSC also plans to pay a stock dividend of 10%.

In terms of personnel, Vinconship approved Bui Minh Hung's resignation as chairman for 2020-2025 and the dismissal of two board members, Van Tran Hoan and Cap Trong Cuong. The three newly elected board members are Ninh Van Hien, Phan Tuan Linh, and Tran Thi Phuong Anh.

In the first five months of this year, the enterprise posted an estimated revenue of VND1.06 trillion ($41.54 million) and a pre-tax profit of VND171.9 billion ($6.7 million), up 28% and 75% year-on-year, respectively.

With Nam Hai Dinh Vu port, Viconship is now the biggest seaport operator in Hai Phong city, with a total capacity of 2.3 million TEUs and making up 30% of the local seaport business. The port has started to be profitable.

The VND1 trillion port was built in 2012 as a joint venture between Gemadept Corporation (HoSE: GMD) and Vietnam Petroleum Transport JSC (Vipco). In the second quarter of 2023, Gemadept completed the sale of its entire 84.66% stake to Viconship and its partners.

VSC shares closed at VND23,700 ($0.93) apiece on Monday.