20151120_BSC_Vietnam Company Research_EN_ACV2777

Airport Corporation of Vietnam (ACV) exclusively operates and manages all 22 civil airports Vietnam. Therefore, the company is a unique representative of the Vietnam aviation industry. ACV would directly benefit from the potential growth of the industry, driven by economic recovery, global integration, expansion strategies of airlines, and an emerging middle class.

We anticipate that ACV will achieve sustainable growth after equitization due to: • Investment ability in airport system.

• Operation ability in aeronautical services.

• High potential growth in nonaeronautical services.

• Strong operating cash flow.

We used a combination of two valuation methods (1) FCFF- discounted Free Cash flow to Firm and (2) Multiples of EV / EBITDA and P/B - price book value. These methods take into consideration the value of business assets, potential future profits and the level of market acceptance for similar businesses.

Combining these valuation methods above, we conclude that each share of ACV will be reasonably priced in the range of 12,068 VND to 14,766 VND.