In 2025, Sotrans sets a consolidated revenue target of VND 3,560 billion, a 45% increase compared to the same period last year. The gross profit margin is expected to remain at 16%, resulting in an estimated after-tax profit of VND 315 billion. These are record-breaking numbers (except for 2017 when there was a one-off gain from investment liquidation). Even without considering the risk of potential US tariffs on Vietnamese goods, this target raises questions among shareholders about its feasibility.
| Is Sotrans setting an ambitious goal for 2025? |
Speaking at the 2025 Annual General Meeting of Shareholders on the morning of May 16th, General Director Dang Vu Thanh emphasized that the growth orientation has been carefully considered. One of the two important bases is the business results of the first quarter of the year. Despite the first quarter usually being a quiet period due to the Tet holiday, Sotrans still recorded a profit that exceeded expectations by 7%, although revenue was only about 81%.
“We know that the first quarter is always a low point. And during this low point, having a shortfall of about ten percent in revenue but still achieving and even surpassing the profit plan is, from the perspective of the Executive Board, I think, a positive indicator rather than a negative one,” he said.
According to Mr. Thanh, the cargo volume in March increased by nearly 40% compared to February, reflecting a strong recovery after Tet. This favorable trend continued into April and May, contributing to the expectation that the second quarter will outperform the first, thus supporting the company in achieving its six-month target. This is also an important foundation for Sotrans to cope with international market uncertainties, especially in the event of US tax measures, which could result in a 25-30% decrease in revenue and profit.
Sotrans’ Executive Board at the 2025 Annual General Meeting of Shareholders on May 16th. Photo: Tu Kinh
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Another driving force comes from Vietranstimex, a subsidiary specializing in super-heavy cargo transportation, which was the main reason for Sotrans’ underperformance in achieving its profit target last year. However, in the first quarter of 2025, this unit reduced its losses by about 50% compared to the average of the previous year.
The General Director stated that due to the nature of project-based service provision, Vietranstimex’s revenue is mainly recognized in the second quarter. “Therefore, the results of the second quarter will definitely be much more favorable,” affirmed Mr. Thanh. With the current rate of improvement, the contribution of this subsidiary is considered a crucial factor in Sotrans’ completion of its consolidated figures set for 2025.
“These are the two bases on which the Executive Board believes that although the 40-50% growth target is very challenging and not a simple task, especially considering the company’s current scale,” the leader added.
“We are no longer in the stage of increasing from 10 billion to 15-20 billion, but we are talking about raising it from 200-300 billion by an additional 40-50%, which is a huge leap. But this challenge is based on solid grounds and is entirely feasible, not just a figure made up by the Board of Directors.”
In parallel, Sotrans is implementing several strategic projects to expand its capacity. Notably, the project to increase the capacity of Long Binh Port from 500,000 TEUs to a maximum of 760,000 TEUs in the period of 2025-2028, without expanding the area. This will be achieved through investments in modern equipment, process improvements, and the application of new technologies to maximize the utilization of the existing 20ha area.
Additionally, the company is investing in a chemical warehouse system, expected to become the most modern specialized warehouse in Vietnam, serving the Southeast region. Despite contributing a small proportion of revenue (about 2-3%), the project holds high strategic value. The new warehouse system is anticipated to enhance profit margins and expand the integrated logistics service portfolio.
“This is the first time Sotrans has entered a niche market, offering more attractive profit margins compared to traditional warehouse types, which are experiencing a downward trend in efficiency. This is the first step in our strategy to expand our infrastructure and warehousing services,” the CEO shared.
Despite significant growth in business results in 2024, the company will not pay dividends for that year and will continue to maintain a 0% dividend rate in 2025. The reason given is to ensure financial resources for medium and long-term investment projects. From 2026 onwards, the dividend policy will be reconsidered based on business performance and financial status at that time.
According to the consolidated financial statements for the first quarter of 2025, Sotrans achieved a revenue of VND 557 billion, a 17% increase compared to the same period. Net profit exceeded VND 56 billion, a 31% increase, thanks to the increased cargo volume handled by the port. With these results, the company has accomplished 16% of its revenue target and 18% of its profit plan for the year.
Sowatco’s AGM: Surprising 35% Cash Dividend Payout
| Sotrans’ Profit in the First Quarter of 2025 Grows Compared to the Same Period |
– 13:15 16/05/2025
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