- We downgrade our rating for SCS to MARKET PERFORM from OUTPERFORM as we cut our target price (TP) by 25%. SCS’s share price has dropped by 10% over the last five months.

- Our lower TP is mostly due to the removal of our assumption for SCS’s 20% stake in Long Thanh International Airport’s cargo terminal No. 1 (LTA-C1) which results in 14%/23%/32% cuts to our 2027/28/29F NPAT-MI. This outweighs 11%/8%/2% higher 2024/25/26F NPAT-MI. 

- We raise our 2024/25/26F NPAT-MI projections following stronger-than-expected 9M 2024 results, with an ASP increase outweighing slower-than-expected cargo throughput growth. We raise 2024/25/26F ASPs by 6-8% p.a., while respectively trimming cargo volume by 3%/5%/10%.

Powered by Froala Editor