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Airport Corporation of Vietnam (ACV: UPCOM) BUY - 1Y Target Price: VND 58,500 Current price: VND 46,900
Kim Nguyen The first stage of growth [email protected] +84 8 3824 2897 ext. 2140 2016 business preview: 2016 GPM supported by encouraging
sales volume and no maintenance expense
28 December 2016 ACV held an investor meeting on 15th December 2016. The followings are key INDUSTRIALS - VIETNAM takeaways from the meeting: Key figures The company announced estimated business results for 2016, which are quite Market cap (USD mn) 4,747 positive. ACV estimated 2016 net revenue of the parent company to achieve VND Market cap (VND bn) 107,988 13,393bn (+23% YoY) and PBT to achieve VND 4,079bn (+97% YoY). GPM is Outstanding shares (mn) 2,177 estimated to achieve 38%, a significant improvement from 23.6% in 2015. The 52W high/low (VND 1,000) 56/35.2 upbeat performance in earnings can be attributed to: Average 3M volume (share) N.a Average 3Mvalue (USD mn) N.a Sales volume growth. In 2016, ACV estimates total passenger volume through Average 3M value (VND bn) N.a its terminals to record 81.1mn passengers (+28% YoY and vs. 24% YoY in Foreign ownership (%) 3.19 2015), in which international passengers will total 23.9mn (+25% YoY) and State ownership (%) 95.4 domestic passengers are expected to reach 57.2mn passengers (+30% YoY). Management ownership (%) N.a The number of flights will reach 562K (+26% YoY). Cargo and parcel volume may record 1.035 mn tons (+6% YoY). As aeronautical revenue contributes more Stock performance than 80% to total revenue, the positive growth in sales volume fueled revenue growth in light of unchanged charging fees and high growth of international passengers with higher charging fees.
Significant reduction of repair and maintenance expenses as accrued expenses. In 2016, ACV estimates maintenance and repair expense will be roughly VND 350bn, while it recorded VND 1,260bn in 2015(including VND 995bn in advance booking for maintenance as trade payables and roughly VND 260bn of other actual repair). As a result, 2016 GPM significantly expanded to 38% from 23.6% in 2015. Nevertheless, according to ACV, the company is Source: Bloomberg waiting for Ministry of Finance’s decision on whether ACV will continue to book Company Snapshot expenses for repair and maintenance in advance in 2017 (maximum amount will The parent company of Airports Corporation of Vietnam’s (ACV) predecessor was initially be VND 400bn) or it will record expenses on actual basis. founded in 1976 under the direct management and operation of the Civil Aviation Administration of Vietnam (CAAV) as Northern, Central and Southern Regional Airport Authority. ACV was incorporated following a merger of the Northern, Central and Southern Airport Corporation in 2012 by the Minister of Transport. It IPO-ed in November 2015 and was listed on UPCOM on 21st November 2016. Currently, ACV operates under a parent-subsidiary model and involves in managing and operating 22 civil airports in Vietnam. The company significantly expanded its operating capacity from 45 mil passengers per year in 2011 to more than 81 mil passengers per year in 2015.
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ACV’s annual maintenance and repair expenses
2012 2013 2014 2015 2016E 2017E Advance booking for maintenance(VND bn) 995 995 995 995 200 400 Other repair(actual repair)(VND bn) 347 568 50 258 150
Source: ACV, SSI Research
Note: ACV plans to record advance booking for maintenance and expenses of roughly VND 400bn in 2017, equal to average actual repair and maintenance expenses from 2012-2015
Impact from FX loss was similar to 2015. In the above estimated business results, ACV estimates FX loss on JPY dominated ODA loans of JPY 72bn will be VND 824bn (vs that of VND 641bn in 2015), implying a 6% appreciation of JPY against VND. If we were to exclude FX effects in 2015 and 2016, 2016 PBT of the parent company would increase by 81% YoY, reaching VND 4,903bn.
ACV’s passenger volume from 2012-2016 ACV’s cargo volume from 2012-2016
90 40% 1,200 25% Passenger(million) Growth Cargos and Parcels(thousand tons) Growth
80 35% 34% 1,000 21% 20% 70 29% 30%
60 800 16% 25% 15% 24% 50 14% 600 20% 12% 40 17% 10% 15% 15% 30 400
10% 6% 20 5% 200 10 5%
0 0% 0 0% 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E Source: ACV ACV’s Revenue breakdown by in 3Q16 ACV’s revenue Breakdown in 10M16
Non- aeronautical Retails LPC 9% 9% 13% Others 25%
Non aeronautical 9% Aeronautical 82% PSC 48% ASC 5%
Source: ACV Source: ACV Note: LPC-aircraft landing and parking charges, PSC- Passenger charges, ASC-Airport security charges
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Expansion plan: 45% passenger designed capacity addition plan in 3 years from 2016-2019
Unlike Airports of Thailand PLC. (AOT TB) and Malaysia Airport Holdings Berhad (MAHB MK) which are currently in the second phase of growth (strong focus on enhancing non-aeronautical business), ACV is currently in the 1st phase of growth focusing more on aeronautical business (accounting for roughly 80% to revenue). ACV plans to strongly invest in infrastructure such as maintenance and upgrade maneuvering areas at the major airports such as TIA, NIA, DIA and Phu Quoc International Airport (PQIA) as well as expanding terminals in its airports to capture the incremental air travel demand in Vietnam. Overall, ACV’s total area of terminals is much smaller than its regional peers. For example, total terminal area in Tan Son Nhat is about 133,000sqm for serving actual capacity of 31mn pax in 2016 while that of Suvarnabhumi Airport is around 563,000sqm for serving actual capacity of 62mn pax in 2015 or that of roughly 700,000sqm in Kuala Lumpur International Airport for serving total 70mn passengers per year. As such, in the next 3 years, ACV will focus on expanding the airport terminals and apron in order to meet anticipated demand. At the meeting, ACV announced detailed capacity plans for the airports from 2016-2019 as follows:
Firstly, from 2016 -2018, ACV will upgrade the maneuvering areas with total VND 6,247bn in CAPEX at NIA, TIA and PQIA. The CAPEX will be funded by the State Budget because ACV returned the maneuvering assets to the Government and lease back for operating post- privatization from 1st April, 2016. Therefore, in 2017, ACV will not record roughly VND 200bn in depreciation of the maneuvering assets. Nevertheless, ACV plans to pay leasing fees for these assets to the government of roughly VND 50bn per year as well as there will be new expansion projects which will commence operation in 2016-2017, ACV’s GPM will not be significantly impacted.
Secondly, other expansion of the aprons and terminals will be funded by ACV’s own capital, targeting a total budget of VND 11,095bn from 2015-2018. Actual CAPEX for the period from 2016-2018 will be VND 8,698bn.
In overall, ACV plans to invest approximately VND 8,698bn to increase its airports capacity from total designed capacity of 71.1 mn passengers in 2015 to 115 mn passengers in 2019, implying a CARG of 13%.
Designed capacity of ACV’s airports from 2015-2019E
Passenger(Million/year) Airport ACV’s CAPEX plans(VND bn) Capacity Utilization FY15 FY16 FY19 FY16 FY15-18
NIA 21 21 25 20.5 244 TIA 20 25 38 32.4 3,666 DIA 6 6 13 8.8 1,598 CRIA 1.6 2.5 10 4.2 1,150 Other airports 22.5 24.6 29 15.2 4,437 Total 71.1 79.1 115 81.1 11,095
Source: ACV, SSI Research
Note: NIA- Noi Bai International Airport, TIA-Tan Son Nhat International Airport, DIA-Danang International Airport, CRIA- Cam Ranh International Airport
Regarding TIA, The Ministry of Defense will transfer 21ha next to TIA to the MOT for expanding the airport’s apron. The Ministry of Transportation (MOT) and Vietnam Airlines are building the master plan but ACV will hold a majority stake in the project. Currently, the existing apron at TIA has 47 aircraft parking stands with 36,64ha; the additional 21ha is estimated to accommodate more than 16 parking stands.
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Our thoughts: Although the CAPEX for expansion plan is significant, we think that the plan is a good catalyst for ACV because of following reasons: (1) Firstly, as of 3Q16, ACV had already accumulated significant cash on hand of VND 3,673bn and short-term investment of VND 12,333bn (short-term deposit). With EBITDA of more than VND 8,000bn a year (according to our estimates from 2017 onwards), ACV can fund the expansion plan without borrowing new debts. (2) Secondly, the expansion plan would not only upgrade total passenger capacity but also expand the commercial space which will boost ACV’s non-aeronautical revenue. ACV’s non-aeronautical revenue’s contribution to total revenue of 10% remains low compared with regional peers (vs that of 43% of AOT and 27% of MAHB). Therefore, non-aeronautical business still has room for growth.
Possible increase in aeronautical charging fee in 2017
In August 2016, together with Civil Aviation Authority of Vietnam (CAAV), ACV proposed to the MOT to increase domestic passenger charge at 7 of the largest airports including TIA, NIA, DIA, CRIA, PQIA, Vinh International Airport and Phu Bai Airport. At the meeting, ACV disclosed the proposal, specifically: (1) ACV proposes to re-classify airports as follows: Class A airports include TIA, DIA, NIA, Cat Bi International Airport, Vinh International Airport, and Can Tho International Airport. Class C airports include Con Dao Airport, Dien Bien Airport, Ca Mau Airport, Rach Gia Airport. Class B airports will include the remaining. (2) Landing charge: For Class A airports, charging fee will increase by 31%, and Class B will increase by 14%. (3) Domestic passenger charge: Class A: increase by 43%, and Class B: increase by 14%. (4) International passenger charges at Cat Bi International Airport, Vinh International Airport and Lien Khuong International Airport will increase to USD 14 per pax from the current USD 8 per pax. (5) Aircraft parking fee: 50% will be applied hourly charging scheme (from the 4th hour of parking) for domestic airlines because currently all domestic airlines are applying a monthly payment package (Currently, 100% of international airlines are applied hourly charging scheme from the 4th hour of parking).
According to ACV, the adjustment in charging fees will be soon approved by the MOT and gradually applied step by step in 1Q17 as CAPEX for international terminals and airports are similar to domestic ones yet current domestic charging fee is lower by roughly 2.5x-6.4x compared with international ones. This will help improve GPM of the segment of ACV, which enjoys higher growth rate than the international segment.
More clarity on privatized some airport projects according to MOT’s strategies with impact on 2017 business plan
Post- equitization of ACV, MOT will privatize several airport projects in order to avoid monopoly in the airport industry. In particular:
(1) According to the IPO plan, the new international terminal in DIA will be operated by a private entity. The International Airport Investment and Exploitation JSC (AHT) will operate the new terminal (AHT is a joint stock company comprising ACV, Thang Long Air Services Corporation, AOV Investment Corporation and Ha Noi Construction Corporation). ACV owns 10% in AHT. The project is currently under construction and plans to inaugurate from 3Q17. Therefore, all international passengers from the current terminal will move to the international terminal in 2017. According to ACV, this will cause ACV’s revenue from DIA to reduce roughly VND 350bn in 2017.
Additionally, similar to DIA, for the new international terminal in PQIA, the international terminal JSC will operate the project from 2018, in which ACV will also own 10% ownership
(2) At the meeting, ACV also disclosed that it proposed to the MOT to establish an airport security company as an independent entity. ACV may not own and operate airport security services in the future but the exact timeline has not been defined. In 2016, airport security revenue is expected to record VND 750bn. However, the security force current includes
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2,600 employees which incur abundant expenses and profit is insignificant. As a result, if we were to exclude this business from ACV, its revenue will be reduced by VND 750bn in 2017; labor cost will also reduce accordingly. As such, the reduction of airport security business will not significantly impact ACV’s earnings performance in the coming years.
(3) The vehicle parking lot will be operated by the Investment and Construction JSC, in which ACV owns 18% ownership. Nevertheless, revenue contribution of the parking lot is insignificant in 2016
(4) According to the government’s regulation on ACV, the company divested 6.6% stake in Saigon Ground Services JSC (SGN: UPCOM) (from 54.6% to 48%) on November 2016 and will continue to divest 3% stake in Southern Airports Services JSC (SAS: UPCOM) (from 51% to 48%). As such, SGN and SAS’s FS will not be consolidated into ACV’s from 2017.
Earnings estimates
Because the proposal to increase charging fees is still not approved by the MOT, we still assume that ACV’s fees for aeronautical services will remain stable moving forward due to the regulatory risk. Any increases in passenger volume, air cargo volume and flight movements will boost revenue growth.
In 2017, we revise down revenue estimate for ACV compared with our previous report because the company will divest 3% ownership in SAS to 48%. As the international terminal at DIA will commence operation from 3Q17, international passengers will move to the new terminal. Accordingly, we assume that ACV’s international passenger charge revenue will reduce roughly VND 350bn in 2017 and 2018. As the timeline of privatizing airport security business has not been decided, we have not factored its impact in 2017 estimates. Overall, we expect that ACV’s revenue will reach VND 15,838bn (-2.7% YoY) and PBT to reach VND 5,593 bn (+25% YoY). Our upbeat PBT projection is anchored on the following assumptions:
Increases in passenger volume and cargo and parcel volume of 23% YoY and 5.7% YoY, respectively, thanks to the commencement of Tan Son Nhat Airport International Terminal expansion in 4Q16 and expansion of other airports commencing operation in 2016 and 2017. International passengers may increase by 18% YoY and domestic passenger volume will increase by 25% YoY thanks to the government’s emphasis on boosting the domestic air travel market.
GPM will remain at 35% in 2017 (a slight decline compared with 36.5% in 2016) because: i) we assume that ACV will book VND 400bn in repair and maintenance expense in 2017 and ii) increase capacity at Noi Bai International Airport thanks to the commencement of Terminal 2 and an increase at Tan Son Nhat International Airport capacity after its expansion in 2016 will enhance GPM. Amid the weakened JPY recently, we assume that ACV will not incur FX loss in 2017
We adjust CAPEX expenses to roughly VND 2,500bn per year (vs our previous estimate of VND 5,800bn per year) from 2016-2020 corresponding with ACV’s updated CAPEX plan because the CAPEX for the maneuvering area will be funded by the State Budget.
As a result, ACV’s 2017 PBT and net income may reach VND 5,593bn (+25% YoY) and VND 4,474bn (+25% YoY) (assuming that ACV is applied CIT of 20% in 2017), translating to (core) EPS of VND 1,907. Excluding FX effects in 2016, 2017 PBT should increase by 12% YoY (assuming that JPY may appreciate by 3.8% against VND, implying an FX loss of VND 545bn in 2016, lower than ACV’s guidance of VND 824bn).
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From 2018-2020: we assume that international passengers will grow at 10% per year and international cargo will grow at 3% per year.
Valuation: 1Y TP: VND 58,500/share, BUY
In our view, ACV holds significant potentials, including:
In aeronautical business, ACV is the largest beneficiary from Vietnam’s robust tourism growth in the coming years. We estimate that in the next five years, the annual growth rate of international tourist volume to Vietnam should increase to about 12%, from the average 9.48% in the last five years, thanks to the recent government’s initiative to boost the tourism sector.
Higher passenger volumes will help improve GPM.
Possible increase in domestic charging fees from 2017 will help expand GPM. The latest adjustment in charging fees in in late 2014. In our estimate, we still keep the charging fees flat.
Regarding non-aeronautical business. Non-aeronautical revenue growth through concession revenues (revenue sharing with retail operators in the airports) will be supported by the expansion of airports which will enlarge commercial area.
Please note that ACV’s current GPM is roughly 38%, significantly lower than that of the Airport of Thailand Plc. at more than 60%.
Given the leading position of ACV, we have raised target EV/EBITDA for ACV to 11x (from 8.5x), 10% discount to regional peers of roughly 12x. At the current price of VND 46,900/share, ACV is being traded at 2016 and 2017 P/E of 30x and 24x; 2016 and 2017 P/B of 3.8x and 3.4x, respectively and 2017 EV/EBIDA of 10x. Based on combined methods (end 2017 target EV/EBITDA: 11x; DCF model: WACC: 9.15%, terminal growth: 2%), end 2017 target price for ACV arrives at VND 58,500/share, or 25% higher than the current price. We recommend BUY ACV.
Risks
(1) Policy risk regarding privatizing airports which will reduce ACV monopolistic stature in Vietnam and as a result can reduce earnings upside. Additionally, the government’s strict regulations on airlines will also constraint potential growth of the aviation industry.
(2) Substantial foreign exchange loss due to heavy dependent on Japanese ODA loans.
(3) Territorial disputes and viral diseases (such as South China Sea dispute, SARS and bird flu) may hinder international passengers through international airports.
(4) Significant depreciation expense for expansion projects and the mega Long Thanh International Airport project will impact ACV’s GPM and bottom line from 2025. Long Thanh International Airport will be mainly funded by the ODA loans after 2018. Accordingly, ACV’s debt ratio will thus significantly increase (ACV may own 51% stakes in Long Thanh Airport). We have not yet factored this mega project in our model.
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Sensitivity analysis in 2017
JPYVND 10% 5% 0% -5% -10% Exchange loss/gain (VNDbn) -1,536 -733 0 733 1,536 PBT (VNDbn) 4,000 4,834 5,593 6,326 7,129 EPS (VND) 1,365 1,648 1,907 2,157 2,431 Target price (VND/share) 53,900 56,300 58,500 60,600 63,000
DCF calculation
Consolidated (VND 2016F 2017F 2018F 2019F 2020F Terminal million) EBIT 4,564,364 5,690,242 7,145,804 8,580,297 9,739,001 14,271,488 Abnormal adjustments 0 0 0 0 0 0 Adjusted EBIT 4,564,364 5,690,242 7,145,804 8,580,297 9,739,001 14,271,488 Effective CIT rate (%) 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% EBIT(1-T) 3,651,491 4,552,194 5,716,643 6,864,238 7,791,201 11,417,191 Add: Depreciation 4,148,431 4,408,498 4,668,594 4,928,630 5,188,786 2,800,040 Less: CAPEX 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 2,500,000 Less: Change in WC 1,570,615 826,098 1,774,979 151,678 (19,039) 1,045,036
Free cash flow to firm 3,729,308 5,634,593 6,110,258 9,141,189 10,499,026 10,672,194 Terminal growth 2% Terminal value 143,660,204
Discount period 0.03 1.03 2.03 3.03 4.03
Discount factor 1.00 0.91 0.84 0.77 0.70
Present value 3,719,476 5,148,431 5,114,823 7,010,234 7,376,283
Terminal PV 100,931,108 PV of FCFF - Operating 129,300,355 Cash & cash equivalents 4,466,482 ST Investments 12,864,252 Total Firm Value 146,631,089 Debt 13,426,638 Equity Value 133,204,451 No. of shares 2,177,173,236 Value of a share (VND) 61,182
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APPENDIX: ANNUAL FINANCIAL STATEMENTS
VND Billion 2014 2015 2016F 2017F VND Billion 2014 2015 2016F 2017F
Balance Sheet Income Statement
+ Cash 3,897 4,466 10,621 11,988 Net Sales 10,555 13,173 16,281 16,037
+ Short-term investments 10,669 12,864 14,106 14,106 COGS -7,489 -9,656 -10,631 -10,273
+ Account receivables 3,376 3,478 4,967 4,893 Gross Profit 3,066 3,517 5,651 5,763
+ Inventories 540 712 744 719 Financial Income 2,504 960 1,100 1,078
+ Other current assets 519 295 362 355 Financial Expense -501 -811 -658 -112
Total Current Assets 19,002 21,815 30,800 32,061 Income from associates 0 0 0 0
+ LT Receivables 442 179 163 160 Selling Expense -416 -428 -570 -240
+ Net Fixed Assets 23,568 20,661 19,993 18,073 Admin Expense -1,296 -1,203 -1,221 -1,100
+ Investment properties 38 32 32 32 Income from business operation 3,358 2,055 4,302 5,593
+ LT Assets in progress 0 1,054 977 962 Net Other Income 49 223 164 0
+ LT Investments 284 642 720 720 Profit Before Tax 3,408 2,277 4,467 5,593
+ Other LT Assets 439 467 298 289 Net Income 2,634 1,753 3,573 4,474
Total Long-Term Assets 24,771 23,036 22,182 20,235 NI attributable to shareholders 2,632 1,712 3,538 4,370
Total Assets 43,772 44,852 52,983 52,285 Minority interest 2 41 36 104
+ Current Liabilities 7,540 8,151 8,074 7,135
In which: ST debt 250 308 213 205 Basic EPS (VND) 0 0 1,544 1,907
+ Non-current Liabilities 15,742 16,086 17,308 14,382 BVPS (VND) 12,081 11,601 12,300 13,707
In which: LT debt 12,268 13,119 14,351 14,351 Dividend (VND/share) 0 0 500 500
Total Liabilities 23,282 24,237 25,382 21,517 EBIT 3,474 2,367 4,564 5,690
+ Contributed capital 16,274 17,093 21,772 21,772 EBITDA 5,602 5,979 8,710 10,096
+ Share premium 0 0 0 0
+ Retained earnings 2,904 1,807 4,079 7,142 Growth
+ Other capital/fund 1,312 1,714 1,750 1,854 Sales 10.5% 24.8% 23.6% -1.5%
Shareholders' Equity 20,490 20,615 27,601 30,768 EBITDA 5.9% 6.7% 45.7% 15.9%
Total Liabilities & Equity 43,772 44,852 52,983 52,285 EBIT 8.4% -31.9% 92.8% 24.7%
NI 14.5% -33.4% 103.8% 25.2%
Cash Flow Equity 20.0% 0.6% 33.9% 11.5%
CF from operating activities 2,691 4,213 5,246 4,963 Chartered Capital 53.4% 5.0% 27.4% 0.0%
CF from investing activities -6,656 -2,814 -3,819 -2,500 Total assets 26.3% 2.5% 18.1% -1.3%
CF from financing activities 5,336 -833 4,727 -1,096
Net increase in cash 1,371 566 6,154 1,367 Valuation
Beginning cash 2,516 3,897 4,466 10,621 P/E N/A N/A 32.1 26.0
Ending cash 3,897 4,466 10,621 11,988 P/B 0.0 0.0 4.0 3.6
P/Sales N/A N/A 6.6 6.7
Liquidity Ratios Dividend yield N/A N/A 1.0% 1.0%
Current ratio 2.52 2.68 3.81 4.49 EV/EBITDA -0.4 -0.7 11.6 10
Acid-test ratio 2.38 2.55 3.68 4.34 EV/Sales -0.2 -0.3 6.6 6.7
Cash ratio 1.93 2.13 3.06 3.66
Net debt / EBITDA 1.34 1.47 0.74 0.32 Profitability Ratios
Interest coverage 52.31 26.34 46.78 58.34 Gross Margin 29.0% 26.7% 34.7% 35.9%
Days of receivables 34.4 36.5 39.3 44.1 Operating Margin 24.0% 10.4% 22.1% 28.9%
Days of payables 106.0 56.5 45.4 48.3 Net Margin 25.0% 13.3% 21.9% 27.9%
Days of inventory 25.4 23.7 25.0 26.0 Selling exp./Net sales 3.9% 3.3% 3.5% 1.5%
Admin exp./Net sales 12.3% 9.1% 7.5% 6.9%
Capital Structure ROE 14.0% 8.5% 14.8% 15.3%
Equity/Total asset 0.47 0.46 0.52 0.59 ROA 6.7% 4.0% 7.3% 8.5%
Liabilities/Total Assets 0.53 0.54 0.48 0.41 ROIC 9.1% 5.4% 9.6% 10.4%
Liabilities/Equity 1.14 1.18 0.92 0.70
Debt/Equity 0.61 0.65 0.53 0.47
ST Debt/Equity 0.01 0.01 0.01 0.01
Source: ACV, SSI Research
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1. ANALYST CERTIFICATION
The research analyst(s) on this report certifies that (1) the views expressed in this research report accurately reflect his/her/our own personal views about the securities and/or the issuers and (2) no part of the research analyst(s)’ compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this research report.
2. RATING
Within 12-month horizon, SSIResearch rates stocks as either BUY, HOLD or SELL determined by the stock’s expected return relative to the market required rate of return, which is 18% (*). A BUY rating is given when the security is expected to deliver absolute returns of 18% or greater. A SELL rating is given when the security is expected to deliver returns below or equal to -9%, while a HOLD rating implies returns between -9% and 18%.
Besides, SSIResearch also provides Short-term rating where stock price is expected to rise/reduce within three months because of a stock catalyst or event. Short-term rating may be different from 12-month rating.
Industry Rating: We provide the analyst’ industry rating as follows:
Overweight: The analyst expects the performance of the industry over the next 6-12 months to be attractive vs. the relevant broad market
Neutral: The analyst expects the performance of the industry over the next 6-12 months to be in line with the relevant broad market
Underweight: The analyst expects the performance of the industry over the next 6-12 months with caution vs. the relevant broad market.
*The market required rate of return is calculated based on 5-year Vietnam government bond yield and market risk premium derived from using Relative Equity Market Standard Deviations method. Our rating bands are subject to changes at the time of any significant changes in the above two constituents.
3. DISCLAIMER
The information, statements, forecasts and projections contained herein, including any expression of opinion, are based upon sources believed to be reliable but their accuracy completeness or correctness are not guaranteed. Expressions of opinion herein were arrived at after due and careful consideration and they were based upon the best information then known to us, and in our opinion are fair and reasonable in the circumstances prevailing at the time, and no unpublished price sensitive information would be included in the report. Expressions of opinion contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. SSI and other companies in the SSI and/or their officers, directors and employees may have positions and may affect transactions in securities of companies mentioned herein and may also perform or seek to perform investment banking services for these companies.
This document is for private circulation only and is not for publication in the press or elsewhere. SSI accepts no liability whatsoever for any direct or consequential loss arising from any use of this document or its content. The use of any information, statements forecasts and projections contained herein shall be at the sole discretion and risk of the user.
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4. CONTACT INFORMATION
Institutional Research & Investment Advisory
Kim Nguyen Analyst, Industrials Tel: (848) 3824 2897 ext. 2140 [email protected]
Phuong Hoang Hung Pham Giang Nguyen, ACCA Deputy Managing Director, Associate Director Associate Director Head of Institutional Research & Investment Advisory [email protected] [email protected] [email protected]
WWW.SSI.COM.VN SAIGON SECURITIES INC. HO CHI MINH CITY HANOI Member of the Ho Chi Minh 72 Nguyen Hue Street, 1C Ngo Quyen Street, Ha Noi City Stock Exchange, Regulated District 1 Tel: (844) 3936 6321 by the State Securities Ho Chi Minh City Fax: (844) 3936 6311 Commission Tel: (848) 3824 2897 Email: [email protected] Fax: (848) 3824 2997 Email: [email protected]
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