Vietnam logistics firm Sotrans expects 60% profit hike in 2023

Leading Vietnamese logistics service provider Sotrans is targeting revenue of VND3.18 trillion ($135.46 million) in 2023 and after-tax profit of VND406 billion ($17.3 million), up 21% and 60% year-on-year, respectively.

The figures will be officially released at the company's annual general meeting of shareholders (AGM) on June 21.

It will be the first AGM Sotrans has held since Singapore-backed PSA Cargo Solutions Vietnam Investments Pte Ltd acquired a 24.9% stake.

If the target is reached, it will be the second highest profit in Sotrans' history after 2017.

Sotrans, listed on the Ho Chi Minh Stock Exchange (HoSE) as STG, will ask shareholders for approval to adjust the dividend rate for 2022 from 10% (according to the plan approved by the 2022 AGM) to 7% in cash. It plans not to pay dividends for 2023. Sotrans said it is focusing cash flow and capital on investment in its system, including member companies.

In particular, Sotrans will focus on strengthening the core business segments of its subsidiaries. Sotrans Logistics will focus on developing international and domestic freight forwarding and warehousing services. Sowatco will develop port operations and waterway transportation in Vietnam, and look for opportunities to expand its business in the northern region.

Vietranstimex will focus on developing transporting super-long and super-heavy goods for industries such as electricity, oil and gas, petrochemicals, and cement, not only serving the domestic market but also Southeast Asia by cooperating with big partners in each market.

Sotrans was established in 1975. In 2007, it was converted from a state-owned enterprise to a joint stock company.

In the first quarter of 2023, Sotrans's net revenue reached more than VND385 billion ($16.4 million), while post-tax profit was nearly VND40 billion ($1.7 million), down 48% and 36%, respectively.

STG shares finished at VND49,300 ($2.1) on Friday.