SCS - Weak trade activities delay customer acquisition

We attended SCS’s 2023 AGM in HCMC. Our key takeaways are as follows.

- SCS guides for revenue and NPAT YoY to decline 11% YoY and 20% YoY, respectively. These targets imply no recovery in H2 2023 vs H1 2023.

- Preliminary H1 2023 PBT slumped 24% YoY to VND280bn (USD12mn) as international cargo volume retreated 30% YoY.

- Due to weaker trade activities, both Tan Son Nhat Cargo Services (TCS) and one of its major airline clients face low cargo volume. As such, the airline no longer sees imminent risk of TCS hitting its capacity, which has prompted the airline to delay its relocation to SCS.