Professional Documents
Culture Documents
Ticker: VNA
Reuters: VNA.HM
Bloomberg:VNA VN
Industry: Shipping
Visit Note
March 2015
Continue to liquidate Ha Nam and Ocean ships: These two ships have been
Recommendation
Target price (VND)
4,600
STOCK INFORMATION
Exchange
HSX
VND2,600-4,500
Capitalization
VND90 billion
Outstanding shares
20,000,000
58,649
% foreign ownership
2.67%
49%
Dividend yield
Beta
0.89
PRICE MOVEMENT
YTD
1M
3M
VNA signed a time charter contract till end-Q1/2015: VNA has five ships in 7month time charter contracts with South Korean partners since Q3/2014. These
ships all have larger capacity and younger age than the remaining ships. New
contracts will be considered for signing at the end of Q2/2015. Amid the
oversupply of Paramax ships (expected to increase by 3-4% in 2015) and the BDI
going down to 529 from its peak of 1,484 in November 2014, VNAs time charter
activities are expected to continue to experience difficulties in 2015.
Self operated fleet still incurs high risks: The remaining ships are self
operated by VNA, used for shipping rice for Vinafood to the Philippines. In
addition, VNA also ships other dry commodities such as coal, clinker, steel,
fertilizer, etc. to the Philippines, Thailand and Indonesia. The operation of this
fleet incurs high risks arisen from port infrastructure (causing long time of cargo
unloading and high costs) and unexpected natural disasters in the target
countries. The oil price tumble did not bring high benefits to VNA as the BDI also
went down along with the downward trend of oil prices.
6M
No plans for expansion in 2015: At present, VNA is still facing great difficulties
and has to liquidate ships to supplement working capital; as a result, it has no
plans to purchase new ships, expand shipping routes and seek for new orders
this year.
VNA
25%
VN-Index
9.4%
7.0%
3.8%
-6.9%
Analyst
Thao Dinh
(84 4) 3928 8080 ext 607
dinhthithuthao@baoviet.com.vn
VNAs fleet
No
Name
Year
Place of
manufacturing
Capacity
(DWT)
Operation
year
Binh
Phuoc
1989
Japan
7,054
2001
Ha Nam
1985
Japan
6,500
2000
Ha Tien
1986
Japan
7,018
2001
My An
1994
Japan
8,294
2003
Self operated
My Hung
2003
Vietnam
6,500
2003
Self operated
My Thinh
1990
Japan
14,348
2004
Self operated
My Vuong
1989
Japan
14,339
2004
Self operated
8
9
10
11
12
13
Vinaship
Ocean
Vinaship
Diamond
Vinaship
Gold
Vinaship
Pearl
Vinaship
Sea
Vinaship
Star
State
Time charter
Liquidated in Q4/2014
Self operated Expected to be
liquidated in Q1/2015
Self operated Liquidated in Q4/2014
1986
Japan
12,367
2007
Time charter
Expected to be
liquidated in Q4/2015
1996
Japan
24,034
2009
Time charter
2008
Vietnam
13,245
2008
Time charter
1996
Japan
24,241
2009
Time charter
1998
Japan
27,841
2010
Time charter
1996
Japan
23,949
2011
Time charter
BVSCs comment: VNA owns a fleet with high life-span, which has
significantly affected the companys ability to transport on international routes.
VNA would be attractive to investors in Q1/2015 if the company can liquidate
Ha Nam vessel to improve its profits.
REPORT COMMENTARY
Target price: is the analysts valuation based on analysis of the companys
business performance, potentials, development prospects and potential risks to
determine the share price. Valuation methods commonly used include
discounted cash flow (FCFE. FCFF. DDM); NAV-based valuation; comparative
indicators (P/E. P/B. EV/EBIT. EV/EBITDA...). Selecting any method will
depend on each industry, company and share features. Market sentiment also
can affect the valuation of the target price.
RECOMMENDATION SYSTEM
BVSCs recommendation system is based on the increase/decrease of the
share price to the target price. There are three levels of recommendation with
the corresponding difference in magnitude from low to high. Investors should
be noticed that investment recommendations can be changed at the end of
each quarter after BVSCs corporate reappraisal.
Recommendation levels
Recommendation Explanation
OUTPERFORM
NEUTRAL
DISCLAIMER
All information in this report has been verified carefully and is deemed to be the most reliable; however, Bao Viet
Securities Joint-stock Company (BVSC) shall take no responsibilities with regard to the accuracy and completeness of the
information provided herein. Viewpoints, comments and assessments in this report are of personal opinions of analysts at
the time of report writing and are subject to changes at any time. Therefore, we have no obligation to inform investors.
This report is for the purpose of providing information and does not intend to advise the readers to buy, sell or hold any
securities. Readers should only use this analysis report as a source of reference.
BVSC can have business cooperation and investment activities with or provide investment banking services to the
subjects mentioned in this report. Readers should be noticed that BVSC can have conflicts of interest with investors when
they follow recommendations in this analysis report.
Branch: Floor 8 Bao Viet Tower, 233 Dong Khoi, Dist. 1, HCM City