Tiêu đề SCS_NEUTRAL_TP 140,000_Waiting for new opportunities_BSC Company Update
Loại báo cáo Phân tích công ty
Nguồn BSC
Doanh nghiệp SCS
Chi tiết Ngày : 22/07/2021
Số trang : 12
Ngôn ngữ : English
Dạng tệp : .PDF
Kích thước : 1051 Kb
Tải về: 147
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Tóm tắt

 Valuation  

We recommend TRACKING SCS stock with a target price of VND 140,000 (+9.0% compared to the price on January 4, 2020), based on FCFE method with discount WACC = 9.0%, g= 1.5%. 
 
Forecast of business performance
In 2020, BSC forecasts that SCS’s revenue will reach VND 701 billion (-6.3% YoY), EAT will reach VND 478 billion (-4.9% YoY), of which station operating revenue is estimated at VND 656 billion (-5.6% YoY). 
In 2021, BSC forecasts that SCS’s revenue will reach VND 760 billion (+8.5% yoy), NPAT will reach VND 528 billion (+10.5% yoy) assuming sales will reach 219,491 tons (+6.5% yoy) – Once it returns to the 2019 level, SCS will sign a new long-term contract with VJC.
 
Investment thesis
(1) Being the most efficient enterprise in the field of cargo handling services, there is room to expand the cargo terminal at Tan Son Nhat airport.
(2) High dividend yield, at 7.0% - 8.0% thanks to the debt-free capital structure; cash flow from operating activities is stable.
 
Financial result & business update
In 9M/2020, SCS recorded revenue = 495 billion VND (-9.7% yoy), EAT = 336 billion VND (-9.8% yoy). As for the terminal operation, cargo volume is recovering after bottoming from T4. For the aircraft parking lot rental segment, revenue was 0.26 billion dong (-95.1% yoy) due to service fee discount
 
Other updates
(1) ACSV M&A is still under review. BSC believes that SCS has a great advantage when ACV is both a shareholder of SCS (12.9%) and ACSV (20%). However, the current difficulty related to the divestment of ACV requires the approval of the Ministry of Transport.
(2) SCS intends to participate in the tender to provide cargo terminal services at Long Thanh airport. 
In the event that SCS M&A or bidding is successful, BSC believes that this will be a new growth engine for the business in the long term.