Outlook of logistics stocks promising next year: VCBS

On Tuesday, even though the market benchmark VN-Index ended lower at 1,475.5 points due to strong selling force on large-cap stocks, a series of logistics stocks witnessed outstanding performance.

Of which Viet Nam Ocean Shipping JSC (VOS) hit the biggest intraday gain of 7 per cent. The shares extended the rally in Thursday's trade, up 1.93 per cent.

Other stocks with big increases included Vinaship (VNA), Tan Cang Logistics JSC (TCL), Port of Hai Phong (PHP), Viconship (VSC) and Gemadept (GMD). However, some stocks erased gains on Thursday.

The strong gains were thanked to news that sea freight rates from China to Southeast Asia skyrocketed in the past month to hit the highest level in history. The freight rate increased 10 times higher than pre-pandemic levels, as the peak season for transport before the Lunar New Year begins in Asia.

Bright outlook next year

The industrial report for 2022 from Vietcombank Securities Company (VCBS) showed that logistics stocks’ prospects are positive as they benefit from many factors.

According to VCBS analysis, cargo volume growth momentum is expected to recover in the second half of 2022, which will be a huge driving force for the port industry. The recovery is boosted by new investment projects and production expansion by many FDI enterprises after a period of stagnation in 2021 due to the development of the pandemic.

VCBS also forecasts that Hai Phong's downstream ports will grow again, especially the port group located in the centre of Cam River, including Dinh Vu, Tan Vu, VIP Green and Nam Hai Dinh Vu ports, will continue to record positive business results in 2022 thanks to the benefit of the output growth trend of Hai Phong area and public investments.

Although freight rates may cool down in 2022 due to macro factors, the securities firm still thought that it will be difficult for container freight rates to return to low levels in 2022 due to three main reasons.

Firstly, large production and consumption hubs, especially in Asia with large populations like China and India, will need more time to achieve herd immunity. Second is that China continues to pursue a zero COVID strategy through lockdown measures. And last but not least, the strong supply of newly-built container ships will only get to the market in 2023.

Therefore, VCBS assessed that the group of logistics enterprises or logistics centres is expected to continue to grow strongly in 2022. The securities firm also believes that there is still more room for growth of shipping companies and may create a new profit base.