PVTrans (HOSE: PVT) | Initiation Report, BUY – FW2026 Upside +37.6%

Company Information

PetroVietnam Transportation Corporation (HoSE: PVT) is the national oil and gas shipping contractor, established in 2002 and officially listed on the Ho Chi Minh Stock Exchange (HOSE) since 2007. PetroVietnam (PVN) is the controlling shareholder, holding a 51% stake in PVT. PVT currently operates comprehensive services ranging from crude oil, petroleum, chemical  products, LPG/LNG transportation to dry bulk shipping. In addition, PVT provides FSO/FPSO floating storage services, bunker supply, ship repair, and maritime agency services.

PVT owns a modern and diversified fleet of 64 vessels, efficiently operating in both domestic and international markets. Currently, nearly 90% of the fleet is deployed on international routes, particularly in North America and Europe. Thanks to its early investment strategy in specialized vessels (Aframax, VLGC, chemical tankers) and active participation in global shipping pools, PVT has solidified its leading position in Vietnam’s liquid cargo shipping sector, commanding a 100% market share in domestic crude oil and LPG transportation.

Financial Performance

During 2019–2024, PVT’s revenue and net profit after tax post minority interest (NPAT-MI) recorded a compound annual growth rate (CAGR) of 9.7%. In 2024 alone, PVT achieved record-high revenue and NPAT-MI, reaching VND 11,732 bn (+22.8% YoY) and VND 1,093 bn (+12.4% YoY) respectively, thanks to high international freight rates amid continued global supply chain disruptions caused by major geopolitical conflicts (Russia-Ukraine war, Red Sea crisis, and Panama Canal drought).

For 2025, PVT set relatively conservative business targets, projecting revenue of VND 10,300 bn (-16.3% YoY) and NPAT-MI of VND 960 bn (-12.2% YoY). This cautious guidance was due to concerns that the new US import tariffs would reduce cargo volumes on long-haul routes, leading to stagnating ton-miles growth at the beginning of the year.

As of the end of 9M 2025, PVT booked revenue and NPAT-MI of VND 11,569 bn (+36.7% YoY) and VND 772 bn (-12.7% YoY). The drop in profit was mainly due the one-off gain of 158 bn from vessel disposal in 2024. Taken out the one-off effect, NPAT-M declined by 5.2% YoY, as downward pressures on freight rates in the oil/chemical and bulk cargo segments appeared.

PVT’s consolidated total assets reached VND 20,860 bn (+5.0% YTD) with fleets value accounting for nearly 60% of total assets. The Debt/Equity ratio stood at 0.88x, down slightly from 0.91x at the beginning of the year.  Notably, long-term debt declined to VND 4,900 bn (-8.8% YTD), reflecting PVT’s gradual deleveraging strategy and its use of proceeds from the recent capital increase to fund fleet expansion. This provides a solid financial foundation for continued vessel investment as the industry enters a new upcycle.

Investment Rationales

PVT is our pick in the oil and gas transportation segment given its ongoing fleet expansion strategy and proactive positioning for the energy transition. PVT share price remains undervalued relative to its intrinsic potential, offering an attractive investment opportunity for long-term investors. Our key investment thesis for the stock include:

1. The global tanker market poses to witness resilient performance through 2028, supported BY tight supply and long-haul trade

2. Vietnam tanker market is entering 2026–2028 with a robust demand driven by rising crude oil imports, stable refinery operations, and resilient product flows along the coast

3. We prefer PVT for its market leadership positioning, integrated oil & gas logistics ecosystem, and aggressive international expansion

4. Sustained annual growth and  solid financial capacity

5. Attractive valuation with upside potentials

Valuation and Recommendations

We utilize the DCF, P/E, P/B, and EV/EBITDA methods to determine the intrinsic value of PVT shares. We initiate a BUY recommendation with a FW 2026 target price of VND 26,000/share, implying an upside potential of 37.6% from the closing price of VND 18,900/share as of Dec 5, 2025.