20161118_BSC_Vietnam Company Research_EN_ACV_ICB 2777 (New listing updated)

We recommend STRONG BUY for ACV with target prices based on FCFF and EV/EBITDA at VND 26,386 and VND 37,223 per share, respectively. Listed price of ACV is VND 25,000 per share equivalent to EV/EBITDA of 6.75x, much lower than median of aviation firms in region and growth potential of ACV. Revenue is expected to grow at the rate of 11% per annum, net income at the rate of 36%, reaching VND 2,221 billion in 2016 and VND 8,013 billion in 2020.

ACV manages and operates all 22 civil airports in Vietnam. ACV has a total design capacity of 77.51 million passengers, served 63.12 million passenger in 2015. For more detail please refer to 2015 ACV report.