Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity Bottom-up Research

Equity Bottom-Up

Sai Gon Cargo Service  / Equity Bottom-Up

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sai-gon-cargo-service-corp" target="_blank" data-smartkarma-citation="entities:40374:1" rel="noopener">Sai Gon Cargo Service (SCS VN)</a> experienced a robust start to Q4 with October volumes up 8.8% YoY (led by international volume growth of 16% YoY). </li>
<li>On the 9MFY25 trajectory, despite the increase in corporate tax from 11% to 20%, the company will still achieve 5-6% YoY earnings growth, placing it at 7.2x PE FY25e.</li>
<li>The company faces ongoing risk from potential volume migration to Long Thanh Airport Terminal 2, slated to begin operations in early 2027, which is expected to divert international cargo.</li>
</ul>



Sai Gon Cargo Service (SCS VN) experienced a robust start to Q4 with October volumes up 8.8% YoY (led by international volume growth of 16% YoY). 
On the 9MFY25 trajectory, despite the increase in corporate tax from 11% to 20%, the company will still achieve 5-6% YoY earnings growth, placing it at 7.2x PE FY25e.
The company faces ongoing risk from potential volume migration to Long Thanh Airport Terminal 2, slated to begin operations in early 2027, which is expected to divert international cargo.


Sai Gon Cargo Service (SCS VN): Robust Start To Q4, 7.2x PE/11% Dividend Yield/Net Cash/50% ROCE

<ul>
<li>
<a href="https://www.smartkarma.com/entities/sai-gon-cargo-service-corp" target="_blank" data-smartkarma-citation="entities:40374:1" rel="noopener">Sai Gon Cargo Service (SCS VN)</a> is a cargo handling business, majority owned by the <a href="https://www.smartkarma.com/entities/airports-corp-of-vietnam-jsc" target="_blank" data-smartkarma-citation="entities:23702:1" rel="noopener">Airports Corporation Of Viet Nam (ACV VN) and </a><a href="https://www.smartkarma.com/entities/gemadept-corp" target="_blank" data-smartkarma-citation="entities:22695:1" rel="noopener">Gemadept Corp (GMD VN)</a> .  </li>
<li>Net cash (16% of market cap), trading at 11.5x FY24e PE, with ~7% dividend yield (assuming 80% payout ratio), &gt;75% EBITDA margins/&gt;70% net margins, and 5 Yr Avg-ROEs  &gt;40%. </li>
<li>We see long-term structural growth drivers with the construction of the <a href="https://en.wikipedia.org/wiki/Long_Thanh_International_Airport" target="_blank" rel="noopener">Long Thanh Airport</a>, and in the short term, we see an impending cargo volume recovery.</li>
</ul>



Sai Gon Cargo Service (SCS VN) is a cargo handling business, majority owned by the Airports Corporation Of Viet Nam (ACV VN) and Gemadept Corp (GMD VN) .  
Net cash (16% of market cap), trading at 11.5x FY24e PE, with ~7% dividend yield (assuming 80% payout ratio), &gt;75% EBITDA margins/&gt;70% net margins, and 5 Yr Avg-ROEs  &gt;40%. 
We see long-term structural growth drivers with the construction of the Long Thanh Airport, and in the short term, we see an impending cargo volume recovery.


Sai Gon Cargo Service (SCS VN): 11.5x FY24e PE, ~7% Dividend Yield, >70% Net Margin Business

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Event-Driven

Malaysia Airports Holdings / Event-Driven

<ul>
<li>
<a href="https://www.smartkarma.com/entities/malaysia-airports-holdings-bhd" target="_blank" data-smartkarma-citation="entities:117:1" rel="noopener">Malaysia Airports Holdings (MAHB MK)</a>'s voluntary conditional RM11.00 offer from the consortium has a first closing date of 8 January.</li>
<li>Unusually, the independent directors and adviser have differing opinions - the directors and adviser agree that the offer is NOT fair. However, the directors opine that it is NOT reasonable. </li>
<li>The consortium has three options – keep terms unchanged (hope for the best), bump or lower the acceptance threshold. The most likely option is to lower the acceptance threshold.  </li>
</ul>



Malaysia Airports Holdings (MAHB MK)'s voluntary conditional RM11.00 offer from the consortium has a first closing date of 8 January.
Unusually, the independent directors and adviser have differing opinions - the directors and adviser agree that the offer is NOT fair. However, the directors opine that it is NOT reasonable. 
The consortium has three options – keep terms unchanged (hope for the best), bump or lower the acceptance threshold. The most likely option is to lower the acceptance threshold.  


Malaysia Airports (MAHB MK): Awaiting the Consortium’s Next Move

External broker reports(aggregated public sources), Vietcap

Vietcap

External broker reports(aggregated public sources)

We specialize in consulting both individual and institutional clients, providing them with effective financial solutions that are tailored to their specific needs.

Airports Corporation Of Viet Nam / Equity Bottom-Up

<ul><li>We increase our target price (TP) for ACV by 18% but reiterate our MARKET PERFORM rating as ACV’s share price has increased by 11% in the last three months.</li><li>We adjust our valuation approach from a 100% DCF method to a blend of DCF (70% weight) and EV/EBITDA multiple (30% weight) to mitigate the impact of heavy capex for Long Thanh International Airport (LTA) in 2025-26F and high interest expenses from 2027F onward.</li><li>We apply an EV/EBITDA multiple of 20.0x, consistent with ACV’s 2017-2024 average (excluding 2020-2022). We believe ACV merits valuation multiples at least equal to its historical average.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

We increase our target price (TP) for ACV by 18% but reiterate our MARKET PERFORM rating as ACV’s share price has increased by 11% in the last three months.We adjust our valuation approach from a 100% DCF method to a blend of DCF (70% weight) and EV/EBITDA multiple (30% weight) to mitigate the impact of heavy capex for Long Thanh International Airport (LTA) in 2025-26F and high interest expenses from 2027F onward.We apply an EV/EBITDA multiple of 20.0x, consistent with ACV’s 2017-2024 average (excluding 2020-2022). We believe ACV merits valuation multiples at least equal to its historical average.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ACV - Strong International Traffic Recovery, Softer Near-Term Domestic Pax Outlook

External broker reports(aggregated public sources), Rong Viet Securities

Rong Viet Securities

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Content available is external broker reports authored by a third party outside the Smartkarma network and has been aggregated by an online aggregator through publicly available sources and is displayed by Smartkarma in this format for user's convenience and general informational purposes only. Content does not constitute investment or financial advice and Smartkarma makes no representation or warranty regarding its accuracy or contents. Original third party author retains all copyright and other proprietary rights in the content. Access or use of third party links not controlled by Smartkarma are at the user's own risk.

<ul><li>Net revenue grew by 13% YoY, reaching VND 4.9 trillion, while NPAT increased by 26% YoY, recording VND 2,898 bn after excluding airport infrastructure.</li><li>Total passenger volume reached 27 mn (-7% YoY), with international passenger volume increasing by 31% YoY to 9.8 mn, while domestic passenger volume dropped by 21% YoY to 17.2 mn.</li><li>The strong growth in international passengers was driven by Vietnam's ability to attract tourists from South Korea and China due to low travel costs.</li></ul>Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

Net revenue grew by 13% YoY, reaching VND 4.9 trillion, while NPAT increased by 26% YoY, recording VND 2,898 bn after excluding airport infrastructure.Total passenger volume reached 27 mn (-7% YoY), with international passenger volume increasing by 31% YoY to 9.8 mn, while domestic passenger volume dropped by 21% YoY to 17.2 mn.The strong growth in international passengers was driven by Vietnam's ability to attract tourists from South Korea and China due to low travel costs.Content is external broker report sourced from online content aggregator through publicly available sources and is displayed below for general informational purposes only. Refer full disclaimer below.

ACV - Bad Debt Risks Overshadow Many Growth Opportunities

Vietnam

Airports Corporation of Vietnam JSC provides airport operations. The Company is involved in investment, construction, management, and maintenance of airports. Airports Corporation of Vietnam operates in Vietnam.

Airports Corporation Of Viet Nam (ACV VN)

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Airports Corporation Of Viet Nam (ACV VN)

Sai Gon Cargo Service (SCS VN): Robust Start To Q4, 7.2x PE/11% Dividend Yield/Net Cash/50% ROCE

The metrics for Sai Gon Cargo Service (SCS VN) are impressive, with a >50% ROCE, 7.2x PE, 11% dividend yield, and 26% of market capitalization in...

Sameer Taneja

Sai Gon Cargo Service (SCS VN): 11.5x FY24e PE, ~7% Dividend Yield, >70% Net Margin Business

SCS VN is net cash (16% of market cap), trading at 11x FY24 PE, with >7% dividend yield (assuming 80% payout ratio), >75% EBITDA margins/>70% net...

Sameer Taneja

Malaysia Airports (MAHB MK): Awaiting the Consortium’s Next Move

The consortium has extended the closing date to 17 January. As of 6 January, including acceptances, the offeror represented 75.73% of outstanding...

Arun George

ACV - Strong International Traffic Recovery, Softer Near-Term Domestic Pax Outlook

We increase our target price (TP) for ACV by 18% but reiterate our MARKET PERFORM rating as ACV’s share price has increased by 11% in the last...

Vietcap

ACV - Bad Debt Risks Overshadow Many Growth Opportunities

Net revenue grew by 13% YoY, reaching VND 4.9 trillion, while NPAT increased by 26% YoY, recording VND 2,898 bn after excluding airport...

Rong Viet Securities

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