Hai An Transport & Stevedoring is a Vietnamese company primarily engaged in port operations, maritime transport, and logistics. It’s a publicly listed company on the Ho Chi Minh Stock Exchange under the ticker HAH.
Between 2020 and 2022, the company witnessed surges in both revenue and profit. This growth was significantly propelled by skyrocketing freight prices during the COVID-19 pandemic–The World Container Index increased fivefold from August 2020, peaking at US$10,377 per 40-foot container in September 2021. This led to a 7.2-fold increase in the company’s stock price between January 2021 and June 2022.
That said, the landscape shifted dramatically in 2023. Rising inflation, weakening transportation demand, and plummeting freight rates began to impact the industry. As shipping lines took delivery of a massive number of ships ordered during the peak of supply chain congestion, industry capacity surged, intensifying competition. Consequently, Hai An’s revenue and profits declined significantly compared to 2022, accompanied by a 65 percent drop in stock value.
However, in the second quarter of 2024, Hai An recorded an increase in revenue and profit compared to the same period last year. This growth was attributed to factors such as the expansion of its fleet, the opening of new domestic and international routes, and rising freight rates. Notably, the World Container Index on August 8 reached US$5,551 per 40-foot container, a 209 percent year-over-year increase. Additionally, the time charter rate, which is the daily or weekly fee for renting a 1,700-TEU vessel, had surged by 90 percent year-to-date.
While these developments present potential investment opportunities, a thorough due diligence process is essential for investors considering Hai An shares.
Disclosure: The author does not have any financial interest in HAH stock.