SCS - Volume growth weakens in Q2, as expected

- SCS announced Q2 2022 results with revenue remaining flat YoY at VND209bn (USD9.1mn) and NPAT-MI edging up 3.9% YoY to VND153bn (USD6.7mn). In Q2 2022, total cargo volume declined 10% YoY with international cargo volume falling 2.1% YoY to 43,973 tonnes and domestic cargo volume plunging 32% YoY to 11,462 tonnes. Meanwhile, SCS’s average service price (ASP) increased 11% YoY in Q2 2022.

- Compared to Q1 2022, revenue decreased 15% QoQ and NPAT-MI declined 18% QoQ in Q2 2022, which was mainly due to cargo volume falling QoQ. In Q2 2022, international cargo volume plunged 21% QoQ, but domestic cargo volume increased 5.5% QoQ. We believe the QoQ decline in cargo volume was mainly due to COVID-19 disruptions subsiding, which led exporters & importers to put less of a priority on air transport and in turn softened export & import volume in the quarter.

- In H1 2022, revenue climbed 12% YoY to VND455bn (USD20mn) and NPAT-MI jumped 20% YoY to VND340bn (USD15mn), representing 47% and 49% of our full-year forecasts, respectively. We therefore anticipate no major risks to our forecasts, pending a fuller review.