NCS - Growth Opportunity in the Vietnam Aviation Industry
Noi Bai Catering Services JSC (NCS – UPCOM) is a leading player in flight catering and related services at NoiBai international airport. Due to its monopoly status in providing catering service for Vietnam Airlines, as well as its extensive experience in the catering services industry, its business activities have been growing up over the years. During 2013-2017, NCS’s net revenues and NPAT have recorded an impressive CAGR of 13% and 27% respectively.
For the period 2018-2022, flight catering services are estimated to keep growing based on: (1) the strong growth of the number of airline passengers, (2) the increasing demand for business travel and tourism, (3) the expansion project of NoiBai international airport, and (4) NCS’s new catering factory project that will enhance its capacity.
We use a FCFF method to value NCS and estimate the fair value at VND 60,000. Adding VND 2,600 in cash dividend, the total return should be 43% compared to the market price as of 21/05/2018. Therefore, we have a BUY on the stock.”
Viet Dragon Securities belongs to top 20 biggest securities companies in terms of chartered capital in Vietnam. With a qualified, dedicated and professional team, a widespread network, advanced technology, diversified products and services, and good relationship with local and foreign institutions, we provide a wide range of services and products to our clients both individuals and institutions, both local and foreign. We commit to provide our clients with promising investment opportunities and a comprehensive and professional financial investment services.
RongViet Research reports are diversified and abundant, along with in-depth analysis and performed by experienced, highly-qualified and knowledgeable teams. With the objectives of transparency, accurate and timely manner, RongViet believes that our products would always be important sources of information for customers/investors’ investment decisions.”
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.