Company Quarterly Earnings Update – VSC VN – 2021 Q1

Summary of the 2021 Q1 results of Vietnam Container Ship. (VSC VN)

Q1/2021 Results: highlights

  • In the first quarter of the year, VSC’s port volume reached 266,216 TEUs, an increase of 5.5% y/y. Net revenue increased by 6.6% y/y to VND435bn in Q1/2021, while the operating margin remained stable. Net financial income was higher thanks to a stronger cash position. Thus, net profit increased by 11.0% y/y to VND63.4bn.
  • By the end of Q1/2021, VSC has no debts while its cash and cash equivalent amounted to VND576bn, accounting for 22.8% of its total assets.
  • The Annual General Meeting (AGM) approved for the equity capital raising from existing shareholders to finance VSC’s two new deep-sea ports including one in Cat Hai island – Hai Phong City and the other one in Lien Chieu – Da Nang City. One existing share has the right to purchase one new share at a price of VND10,000/share.


  • In the first 4M of 2021, Vietnamese exports expanded by 28.3% y/y to $103.9bn, while imports went up by 30.8% y/y to $102.6bn. We expect robust growth in Vietnam over the coming years as the shift of foreign production out of China will accelerate. As alternatives among Asian countries, Vietnam appears to be the most attractive destination thanks to its geographic location close to China, competitive wages, and sufficient labor resources. The country is showing a stable business environment thanks to its recent widely acknowledged success in containing the global pandemic.
  • The port demand in Hai Phong City is expected to grow solidly while deep-sea ports will play a vital role in the development of trade activities. While the utilization of this industry as a whole stood at 74% in 2020, it is expected to reach 90% by 2024. Although the demand for the deep-sea ports is high, the supply is limited as the only current deep-sea port will reach full capacity this year. We think investment in deep-sea ports will provide an enticing opportunity to some investors who have a strong reputation and expertise within the industry.
  • We expect VSC’s bottom line to grow 14.8% y/y to VND276bn in 2021, thanks to the port volume recovery. Net profit will advance sightly by 2.8% y/y to VND284bn in 2021.

Company ratings and target prices are accessible for clients only.

If you are interested in getting full access to our paid Primary Research Materials feel free to get in touch with us at your convenience.

Our team is actively covering 50 companies in the listed Vietnamese equity space for our clients.

Featured image credit: