VSC – Update – 20180604

• We expect FY18F NPAT growth of 19.1% as VIP Greenport (VGR) will average 100% utilization rate, equivalent to 600,000 TEU during the year. 1Q18 NPAT growth rate of 53.0% yoy supports our bullish earnings forecast for this year. We reduce our TP to VND53,400 from VND62,300 to reflect the bearish market sentiment but reiterate our ADD rating given that 1Q18 business results were in-line with our expectations.
• We value VSC’s shares at VND53,400 each using a blended valuation method of DCF analysis and a target P/E multiple. VSC currently trades at a TTM P/E of 5.9x which is a substantial discount to the peer average of 8.8x.

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