Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

Equity, Bottom-up Analyst

Investics Research

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Sai Gon Cargo Service  / Equity Bottom-Up

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<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

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

Rong Viet Securities

External broker reports(aggregated public sources)

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<ul><li>In Q2-FY25, SCS recorded revenue of VND 292 billion (+10% YoY) and NPAT of VND 189 billion (flat YoY).</li><li>Revenue growth was driven by a shift in the mix of international and domestic cargo, leading to an approximate 16% YoY increase in average service prices.</li><li>However, NPAT growth did not align with revenue due to the expiration of CIT incentives. Starting in 2025, SCS will be subject to a 20% CIT rate (previously exempt for four years, with a 50% tax reduction for the subsequent nine years). </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.

In Q2-FY25, SCS recorded revenue of VND 292 billion (+10% YoY) and NPAT of VND 189 billion (flat YoY).Revenue growth was driven by a shift in the mix of international and domestic cargo, leading to an approximate 16% YoY increase in average service prices.However, NPAT growth did not align with revenue due to the expiration of CIT incentives. Starting in 2025, SCS will be subject to a 20% CIT rate (previously exempt for four years, with a 50% tax reduction for the subsequent nine years). 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.

SAI GON CARGO SERVICE CORPORATION (SCS) - Stable Operations with No Major Fluctuations

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<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> reported flat earnings for Q2 FY25, with operating margins/net margins at 75%/65% and ROCEs topping 50%. </li>
<li>The tariff increases (16% YoY) offset the degrowth in volumes (-5%YoY) and the increase in effective taxation (from 11% to 20%). </li>
<li>Based on management guidance, the stock trades at 9.3x FY25 PE, with an 8.6% dividend yield</li>
</ul>



Sai Gon Cargo Service (SCS VN) reported flat earnings for Q2 FY25, with operating margins/net margins at 75%/65% and ROCEs topping 50%. 
The tariff increases (16% YoY) offset the degrowth in volumes (-5%YoY) and the increase in effective taxation (from 11% to 20%). 
Based on management guidance, the stock trades at 9.3x FY25 PE, with an 8.6% dividend yield


Sai Gon Cargo Service (SCS VN) Q2 FY25: Maintaining 75% Operating Margins and 50% ROCEs

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<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> reported a solid set of Q2 2024 numbers, with revenue up 53.2% YoY and profits up 46.8% YoY. </li>
<li>Volumes were up 50% YoY, and the balance revenue growth was from recent tariff hikes ( <a href="https://www.smartkarma.com/insights/sai-gon-cargo-services-scs-vn-update-price-hikes-strong-q1-2024-operational-numbers" target="_blank" data-smartkarma-citation="insights:136006" rel="noopener">Sai Gon Cargo Services (SCS VN) Update: Price Hikes, Strong Q1 2024 Operational Numbers</a> )</li>
<li>The stock trades at 13x FY24e PE and a 7.5% dividend yield with upside from the current earnings trajectory. Finding 80% EBITDA operators with &gt;40% ROE is rare.</li>
</ul>



Sai Gon Cargo Service (SCS VN) reported a solid set of Q2 2024 numbers, with revenue up 53.2% YoY and profits up 46.8% YoY. 
Volumes were up 50% YoY, and the balance revenue growth was from recent tariff hikes ( Sai Gon Cargo Services (SCS VN) Update: Price Hikes, Strong Q1 2024 Operational Numbers )
The stock trades at 13x FY24e PE and a 7.5% dividend yield with upside from the current earnings trajectory. Finding 80% EBITDA operators with &gt;40% ROE is rare.


Sai Gon Cargo Service (SCS VN): Strong Q2 2024, 8% Dividend Yield, >40% ROEs, Net Cash

<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>  reported a solid set of Q1 2025 numbers, with revenue up 25% YoY and profits up 15% YoY.</li>
<li>Volumes were up 10% YoY, and the balance revenue growth was from recent tariff hikes.  </li>
<li>The stock trades at 8.0/7.6x FY24/25e PE and a 10% dividend yield (22% of market cap in cash), as trade wars remain an overhang on it. </li>
</ul>



Sai Gon Cargo Service (SCS VN)  reported a solid set of Q1 2025 numbers, with revenue up 25% YoY and profits up 15% YoY.
Volumes were up 10% YoY, and the balance revenue growth was from recent tariff hikes.  
The stock trades at 8.0/7.6x FY24/25e PE and a 10% dividend yield (22% of market cap in cash), as trade wars remain an overhang on it. 


Saigon Cargo Services Solid Q1 2025: 75% Operating Margin and 45% ROCE Intact

Vietnam

Sai Gon Cargo Service Corporation (SCSC) provides air transportation services. The Company offers cargo handling, supply packaging, air freight, storage, and warehousing services, as well as elevating transfer vehicles, material handling systems, x-ray scanner, pallet, forklift, and other equipment. SCSC serves customers worldwide.

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Sai Gon Cargo Service (SCS VN)