Result Update Report: VSC - Operational efficiency decreases when im-export context is not favorable
In the context of relatively gloomy world trade activities, along with new investment projects that have not yet produced results, VSC has to face huge challenges in order to grow. In 2023, VSC will continue to invest in expanding the size of the seaport to wait for the recovery period of import and export. However, competition in Hai Phong may become more intense as the addition of two more deep-water ports at Lach Huyen by 2025 could result in slower capacity occupancy rates than expected.
Combining FCFF (50%) and P/B (50%) method, the target price is 29,200 VND/share. Along with an expected cash dividend of VND 1,000, the 12-month total expected return is 7% based on the closing price of April 12, 2023. We recommend ACCUMULATE for VSC.
Vietnam Container Shipping Joint Stock Co. Vietnam Container Shipping Joint Stock Corporation, formerly Vietnam Container Shipping Joint Stock Company, is a Vietnam-based provider of marine port services. It is involved in the operations of ports, container terminals and warehouses, as well as the provision of cargo handling services and container services. The Company also offers freight forwarding services, vessel chartering services, marine brokerage services, inland logistics services and customs clearance services. Other activities include multimodal freight transportation, container manufacturing and the merchandise of petroleum and industrial supplies. As of December 31, 2012, it was a subsidiary of Vietnam Container Shipping Corporation, and it had six wholly owned subsidiaries, one joint ventures and two affiliates. Effective July 18, 2013, the Company has changed its name to Vietnam Container Shipping Joint Stock Corporation from Vietnam Container Shipping Joint Stock Company.
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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