Title ACV_TP 87,600 VND_Upside 28.4%_Long Thanh Prospects_BSC Company Update
Report Type Phân tích công ty
Source BSC
Bussiness ACV
Detail Date : 22/07/2021
Total pages : 13
Language : English
File Type : .PDF
FileSize : 1206 Kb
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Short Content
Valuation  
We recommend BUY for ACV stock with a target price of VND 87,600, +28.4% from the 11/12/2020 price based on FCFF method with a discount of WACC = 9.3%.
Forecast of business performance
BSC forecasts that ACV's 2020 revenue and NPAT are estimated at VND 7,959 billion (-57% yoy) and VND 1,875 billion (-77 % yoy) respectively, with the view that international passenger volume is still less positive and Domestic passenger volume maintained its recovery momentum at the end of the year.
Investment thesis
ACV will be the biggest beneficiary when the aviation industry (i) recovers from 2021, (ii) grows positively in the long term, thanks to its large scale - managing 22/25 airports.
Financial resources are abundant, with cash, and short-term financial investments accounting for 57% of total assets.
Catalyst
The scheme of assigning ACV to manage, use and exploit aviation infrastructure assets is expected to be approved soon.
ACV is assigned as the investor of Component 3 project with investment capital = 4.15 billion USD (accounting for 90% of total investment capital in phase 1)
Listing on HOSE exchange.
Business environment
International passenger sales are still less positive due to the lack of flight routes. Domestic passenger sales recovered positively in July (+150% MoM), thanks to (i) Tourism stimulus policy, (ii) Airlines expanding new domestic routes. 
Outlook for 2021: The domestic market will continue to recover due to the continued control of the epidemic, the international market will reopen flight routes due to the trend of "Air demand".
Financial results & business update
9M/2020 business results decreased compared to the same period due to (i) international routes have not recovered, (ii) air service fees have been reduced. 9M/2020 revenue reached VND 6,083 billion (-55% yoy), EAT reached VND 1,366 billion (-77% yoy).