- SCS announced its Q4 2022 results with revenue plunging 26% YoY to VND196bn (USD8.2mn) and flat YoY NPAT-MI of VND157bn (USD6.5mn). The bottom line was supported by NPM rising 20 ppts YoY, offsetting the YoY decline in the top line. 

- In Q4 2022, international cargo volume plunged 32% YoY to approximately 37,000 tonnes and domestic cargo volume declined 6% YoY to around 11,000 tonnes. We note that Q4 2021 was a relatively high base for international cargo volume as HCMC reopened after a strict COVID-19 lockdown period in Q3 2021. Moreover, we believe the global economic slowdown and plunging maritime container shipping prices partially impacted SCS’s international cargo volume in Q4 2022.

- In 2022, revenue edged up 1% YoY to VND851bn (USD35mn) and NPAT-MI rose 15% YoY to VND646bn (USD27mn), representing 93% and 99% of our respective full-year forecasts. We believe the lower-than-expected 2022F revenue was mainly due to decreased trade activities the amid global economic slowdown. Meanwhile, the NPM expansion beat our expectation thanks to SCS’s effective cost control. We do not anticipate material risk to our forecasts, pending a more extensive review. 

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