PVT - Higher freight rates and tonne-mile demand outlook

- We attended PVT’s online AGM on June 30, which discussed H1 2022 preliminary results, freight rates, the transportation demand outlook and capacity expansion.

- Management sees many opportunities for capacity expansion in H2 2022 and 2023; nevertheless, PVT will follow interest rates and the transportation market closely when making investment decisions. Notably, current tanker investment values are only half of the peak in 2007 (before the maritime transport crisis in 2008-2009).

- Shareholders approved 2022 guidance for revenue of VND6.5tn (USD283mn; -11.8% YoY) and NPAT of VND480bn (USD21mn; -42.7% YoY), which we believe is conservative. We note that PVT’s actual profit numbers have doubled its targets over the past five years.