SCS – Q4-2022 Profit grew better-than-expected on aggressive costs cutting
- Total throughput fell by 32% YoY (international - 32% YoY, domestic -6% YoY) in Q4-2022, which led to a 26% YoY drop in revenue. The weakening trend in Q4 is in line with our forecast as full-year throughput/revenue fulfills 101%/99% of our forecasts.
- COGS and G&A expenses have been significantly cut, down 56% YoY and 63% YoY respectively. Thereby, Q4-2022 NPAT was flat y/y. 2022 NPAT increased 15% YoY, 12% higher than our forecast.
- The weak trade flow prospect between Vietnam and key partners will be challenging for SCS to create a meaningful growth in 2023F. Revenue and NPAT are forecasted to reach VND900 billion (+5% YoY) and VND655 billion (+1% YoY) respectively, equivalent to an 2023F EPS of VND6,300.
- SCS is trading at a 2023F P/E of 11.6x. We reiterate ACCUMULATE recommendation with a TP at VND81,000.
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