ACV – A play on the world’s fastest growing aviation market – Update

• Airports Corporation of Vietnam (ACV) is the country’s monopoly airport operator. It now operates 22 airports nationwide.
• The company is riding on the country’s buoyant aviation market, which has seen passenger throughput volume expand by a 4-year CAGR of 19.9% (2013-17).
• We prefer ACV to airline stocks as it is less exposed to rising fuel prices, while being a likely beneficiary of intensifying competition between regional airlines, in our view.
• Initiate coverage on ACV with an Add rating and a DCF-based TP of VND112,000.
• We see domestic passenger fee hikes, expected divestment by the MoT and animminent migration from UPCOM to main bourse, as key short-term catalysts.

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