Hai An Transport and Stevedoring (HOSE: HAH) | Q1 2026 Update, BUY– 1Y Upside +24.2%

Valuation Turns Attractive As Earnings Reset And Balance Sheet Normalizes

HAH delivered a solid Q1 2026 performance, with consolidated revenue reaching VND 1,265bn (+8.2% YoY) and NPAT-MI increasing strongly to VND 300bn (+28.6% YoY). Earnings growth continued to outpace topline expansion, supported by stronger gross margin improvement across both shipping and port operations, while operational efficiency benefited from fleet expansion and deeper strategic cooperation with VSC. Gross profit margin improved to 39.1% in Q1 2026, compared to 39.8% in Q4 2025 and 32.9% % in Q1 2025.

Shipping and chartering revenue reached VND 1,035bn (+8.3% YoY). HAH continued expanding its fleet capacity, increasing total fleet size to 20 vessels by 5M 2026 with total carrying capacity of 33,258 TEUs (+13.1% YTD). In parallel, HAH is accelerating its long-term fleet expansion strategy through investments in larger vessels, including two 7,100 TEU newbuilds under its joint venture with VSC, positioning the company to participate more actively in regional and international trade lanes.

Despite the gradual increase in feeder vessel deliveries globally, charter market fundamentals remained relatively healthy during Q1 2026. Global feeder vessel orderbook-to-existing fleet ratio increased to 9.6% from 4.9% in 2024 but remained significantly below the broader containership market at approximately 31–38%, supporting resilient charter rates for small- and medium-sized vessels.  Average charter rates for 1,100 TEU and 3,500 TEU vessels remained elevated at USD 17,033/day (+12.9% YoY) and USD 40,626/day (-1.2% YoY), respectively. Meanwhile, intra-Asia shipping activity continued to stay vibrant amid resilient regional trade flows, secondary port expansion, and sustained transshipment demand.

On the port operation side, revenue declined 13.4% YoY due to the strategic cargo transition from Hai An Port to Nam Hai Dinh Vu Port under the cooperation framework with VSC. However, profitability improved significantly, with port gross margin expanding sharply to 69.7% (+29.7ppt YoY), supported by lower outsourced port service costs and improved network optimization. We believe the partnership with VSC should continue enhancing HAH’s operational efficiency through better access to port infrastructure, reduced congestion pressure, and improved cargo handling flexibility across Hai Phong port clusters.

We revise our FY2026 revenue forecast upward to VND 5,039bn (-1.0% YoY+8.8% vs. our previous forecast) and NPAT-MI to VND 1,200bn (-0.5% YoY, +7.9% vs. our previous forecast), primarily reflecting stronger-than-expected FY2025 earnings and incremental contribution from newly delivered vessels HAIAN IRIS and HAIAN ZETA. Nevertheless, we continue to expect earnings to remain broadly stable during 2026–2027 as freight and charter rates gradually normalize following the temporary uplift caused by recent geopolitical disruptions in the Middle East.

Accordingly, we raise our FW2026 target price to VND 71,900/share and maintain our BUY recommendation on HAH, implying upside potential of 24.2% from the closing price as of 13 May 2026.