SCS – Q3-2023 Preview: Profit is forecasted to be flat compared to the previous quarter
- For Q3-2023, we forecast revenue and PAT to reach VND 177 billion (-8% YoY) and VND 127 billion (-14% YoY), respectively, mainly due to low import-export output, forecast to reach 34.7 thousand tons (-13% YoY). Accumulated 9M-2023 revenue and PAT are estimated to reach VND511 billion (-22% YoY) and VND371 billion (-24% YoY), respectively completing 70% and 72% of our full-year forecast.
- We maintain our 2023F forecast with revenue of VND 732 billion (-14% YoY), NPAT of VND 513 billion (-21% YoY), corresponding to basic EPS of 5,100 VND. For the 2024F forecast, revenue VND is 803 billion (+10% YoY), PAT is VND 558 billion (+9% YoY), equivalent to basic EPS of 5,570 VND.
- We reiterate our ACCUMULATE recommendation for SCS with a target price of VND 74,800 with an expected total return (including cash dividends) of 19%, based on the P/E valuation method (target multiple of 15x@ 2024F EPS) and FCFE (Ke: 10.8% and g: 1.8%). In the base case scenario, we don’t factor the possibility that SCS will participate in air cargo terminal at Long Thanh airport (after 2026). As of October 2nd, 2023, SCS is trading at a 2023F/24F P/E of 14.4x/13.1x
Sai Gon Cargo Service Corp. Sai Gon Cargo Service Corporation is a Vietnam-based company primarily engaged in the ground freight and logistics sector. The Company's leading business activities include the operation of air cargo terminals; the leasing of offices, parking lots and soccer fields, and the rental of aircraft hangars in Tan Son Nhat airport.
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.
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