SSI – RESEARCH INSTITUTIONAL RESEARCH & INVESTMENT ADVISORY

Airport Corporation of Vietnam (ACV: UPCOM)

BUY – 1Y Target Price: VND 63,000
Current price: VND 54,500

Kim Nguyen EARNINGS UPDATE

kimntt@ssi.com.vn
+84 28 3824 2897 ext. 2140 Domestic fee hike to be officially
22 August 2017 implemented from 1st Oct 2017
INDUSTRIALS - VIETNAM
 We revised up ACV net earnings forecast for 2017 & 2018 to achieve YoY growth
rate of -49% (+45% if excluding one-off income in 2016) and 16% respectively
Key figures thanks to the domestic fee hikes effective from 1st Oct 2017
Market cap (USD mn) 5,220
 ACV’s 1H 2017 passenger load grew by 17% YoY, mainly driven by strong
Market cap (VND bn) 118,656
international tourist volume to Vietnam
Outstanding shares (mn) 2,177
52W high/low (VND 1,000) 56.0/35.0  Non-aeronautical revenue exhibited stronger growth than that of the aeronautical
Average 3M volume (share) 146,630 segment at 27% YoY
Average 3M value (USD mn) 0.15
Average 3M value (VND bn) 3.42  ACV remains as our Top pick, 1 year target price: VND 63,000/share, upside
Foreign ownership (%) 3.52 16%, BUY
State ownership (%) 95.4
Source: SSI Bloomberg
New aviation fee charges effective from 1st Oct 2017

Stock performance The Ministry of Transportation (MT) has officially released new regulations
regarding domestic fee hikes, whereas most international charges remain
st
unchanged. The fee hikes will be raised gradually from 1 Oct 2017 on a
st
progressive quarterly basis, with the fee schedule hike process completed by 1
Jul 2018. Overall, ACV will significantly benefit from 3 main types of fee hikes:
domestic landing charges, domestic passenger charges and aviation security
charges:

(1) Re-classifying airports: according to the new Decision, ACV’s 22 airports

Source: Bloomberg will be reclassified into 3 classes instead of 2 classes like previously. Class A
Company Snapshot airports include Noi Bai, Da nang, Tan Son Nhat, Cam Ranh, Cat Bi, Vinh,
The parent company of Airports Corporation of Can Tho, Phu Quoc, Lien Khuong, Phu Bai and Buon Ma Thuot. Class C
Vietnam’s (ACV) predecessor was initially airports include Con Dao, Dien Bien, Ca Mau and Rach Gia. Class B
founded in 1976 under the direct management
and operation of the Civil Aviation Administration
airports will include ACV’s other remaining airports.
of Vietnam (CAAV) as Northern, Central and
Southern Regional Airport Authority. ACV was
incorporated following a merger of the Northern,
Central and Southern Airport Corporation in 2012
by the Minister of Transport. It IPO-ed in
November 2015 and was listed on UPCOM on
21st November 2016. Currently, ACV operates
under a parent-subsidiary model and involves in
managing and operating 22 civil airports in
Vietnam.
From 2015-2019, ACV plans to expanding
capacity of existing airports from 71.1 mn pax
per year in 2015 to roughly 115 mn pax per year
in 2019 in order to capture growing air travel
demand in Vietnam.

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(2) Domestic airport fee hikes as below:

Decision 2345/QDD-BGTVT dated 08/08/2017, effective from 1st

Total % up from
Categories Oct 2017
1st July 2018
4Q 2017 1Q 2018 2Q 2018 3Q 2018 onwards
Domestic landing charges +5% +15% 15%
Domestic passenger charges (+VND/pax)
Class A (From VND 63,636/pax) +4,545 +9,091 +13,636 +27,273 43%
Class B (From VND 54,545/pax) +9,091 +13,636 +13.636 +18,182 33%
Class C (no class C previously) +54,545 n.a
Aviation security charges
International passenger, luggage (From $1.50 USD/pax) $2 USD 33.3%
Domestic passenger, luggage(From VND 9,090/pax) +30% +50% +100% +100% 100%

Source: The MT

st
As a result, from 1 Jul 2018, domestic landing charges will be up 15% YoY. Landing charges
account for 27% of ACV’s total revenue in 2016.

For domestic passenger service charges: Group A (92.6% of total domestic passengers): up
43%, Group B (6.6% of total passengers): up 33%, Group C (0.8% of total domestic
passengers): charges introduced at VND 54,545/pax. Currently, international passenger fees
are 2x higher compared with domestic passengers in group A.

For security charges (both domestic and international): International passengers: +33%,
domestic passengers: +100%.

We expect the domestic fee hikes will help ACV to increase PBT by VND 210bn and VND
1,200bn in 2017 and 2018 respectively.

1H 2017 earnings review: Slower domestic volume growth

According to the IPO plan, ACV previously divested its 6.6% stake in Saigon Ground Services
JSC (SGN: UPCOM) (from 54.6% to 48%) in November 2016, and a 3% stake divestment from
Southern Airports Services JSC (SAS: UPCOM) (from 51% to 48%) in March 2017. SGN’s FS
was not consolidated into ACV’s FS at the end of 2016. SAS also stopped consolidating into
ACV and its FS in March 2017. As such, we use the parent company’s results for comparability.

ACV’s 1H 2017 business results

VND bn 1H 2017 YoY growth

Net revenue 7,790 18%
Aeronautical segment 6,348 18%
Non-aeronautical segment 765 27%
Retails 676 13%
EBITDA 5,668 87%
PBT* 3,376 232%

*Excluding extraordinary income in 1Q 2016

Source: ACV, SSI Research

Adding up revenue and profit from landing charges, the ACV parent company recorded 1H 2017
revenue at VND 7,790 bn, up 18% YoY and PBT was recorded as VND 3,376 bn, up 232%
YoY.

 The key revenue stream was in the aeronautical segment, with a 18% YoY growth, and
accounting for 80% of the company’s total revenue. Aeronautical revenue continued to

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deliver positive growth on sustained sales volume growth from increasing number of
international tourists to Vietnam this year, as seen in the table below.

ACV’s sales volume in 1H 2017

Volume 1H 2017 YoY growth

Passenger volume (mn pax) 46 16.5%
International 14.2 25%
Domestic 31.9 13%
Cargo and Parcel ( tons) 672K 32.5%
Aircraft movement (flights) 305K 11.6%

Source: ACV

Nevertheless, ACV’s total passenger volume growth slowed down to 16.5% YoY from an
impressive growth of 32% YoY in 1H 2016, mainly due to a bottleneck situation at Tan Son
Nhat International Airport regarding capacity constraints. In the first five months of 2017, the
airport experienced a slowdown in passenger volume growth to 14% YoY growth (vs 24%
YoY growth in the same period in 2016).

In particular, ACV’s 1H 2017 total domestic passenger volume and total flights had a slower
pace of growth, with 13% YoY and 11.6% YoY respectively (vs. that of 36% YoY and 31%
YoY in 1H 2016). ACV’s management explained that the company together with Civil
Aviation Authority of Vietnam (CAAV) have been rearranging flight slots, which has an effect
of restraining otherwise rapid expansion of domestic airlines, particularly in terms of
aggressively opening new domestic routes and increasing the number of total flights.
Currently, ACV’s domestic sale volume generates a substantial proportion to ACV’s total
sales volume, but revenue generation in absolute figures remains low due to low fees.

On the other hand, international passenger and aircraft movements continued growth at
high rates of 25% YoY and 22.3% YoY respectively. According to the General Statistics
Office, international tourists to Vietnam recorded 5.2 mn pax, increasing by 33% YoY in
June 2017.

 Meanwhile, key revenue growth driver came from the non-aeronautical segment, with 27%
YoY growth from the retail space leasing initiative, as well as advertising and parking
charges, at 35% YoY, 17% YoY and 45% YoY respectively.

 Impressive growth of PBT to 232% YoY was attributable to the exclusion of extraordinary
income in our 1H 2016 calculation. Without this exclusion, the extraordinary income events
are as follows: (1) VND 1,444 bn from a revaluation in current financial investments (2) VND
2,489 bn from a reversal in advance booking for maintenance expenses and land rental
expenses in 1Q 2016. (3) ACV having recorded a substantial FX loss of VND 2,211 bn in 1H
2016 in relation to the 14% JPY appreciation on its JPY 71.7 bn Vietnam-ODA loans, while
1H 2017 saw a reduced loss of VND 648 bn (~3.8% appreciation of JPY against VND).

Considering further exclusions, if we considered the FX loss events immaterial, then 1H 2017
PBT would increase by 5% YoY due to higher maintenance and depreciation expenses in 1H
2017 than from the equivalent period last year.

If excluding landing charge revenues for 1H 2017, ACV would complete 51% and 64% of its
2017 revenue and profit targets, respectively.

th
As of 30 June 2017, ACV’s cash and short-term investment position totaled VND 17,900 bn
(vs. that of VND 16,200 bn as of 2016), accounting for 38% of total assets which offsets total
debt of VND 14,600 bn. All things considered, the company is essentially cash rich and debt-
free.

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Earnings estimates: Some changes in key assumptions for FY2017E and

FY2018E

We maintain our key assumptions on sales volume, with outlook unchanged compared with our
previous report (link).

However, we raise the 2017 revenue estimate for ACV, while the 2018 equivalent revenue
forecast is similar to our previous report as summarized below:

st
First, domestic aviation fee hikes will be officially implemented from 1 Oct 2017 instead of our
st
previous expectation for 1 Jan 2018. As such, we revise upwards our 2017 revenue estimate
by VND 210 bn as ACV is set to benefit from domestic fee increase charge in 4Q 2017.

Second, we reduce maintenance expense forecasts for 2017 and 2018, because ACV’s
maintenance plans for maneuvering areas/movement areas at several airports and Noi Bai
International Airport T1 for this year have not yet been approved by the MT and may be shifted
to next year.

Third, for conservative reasons, we forecast a 6% appreciation in the JPY against VND for its
JPY ODA loans in both 2017 and 2018 due to the strengthening of JPY against USD amid a
weak main street economy in the US and uncertainty of global politics in general.

Key assumption changes

FY207F FY2018F
Net revenue (VNDbn)
New 15,913 18,308
Old 15,716 18,308
Change(%) +1.3% 0%
Maintenance expenses (VND bn)
New 750 1,100
Old 1,900 1,500
Change(%) -60.5% -27%
GPM
New 41.3% 39.9%
Old 29.7% 36.3%
Change(pts) 116 36
VND depreciation against JPY (%)
New 6% 6%
Old 0% 0%
Net profit (VND bn)
New 4,760 5,520
Old 3,571 4,805
Change(%) 30% 15%

Source: SSI Research

Overall, for 2017, we estimate that in 2017 ACV’s consolidated revenue will reach VND 15,913
bn (+18.7% YoY) (excluding SGN and SAS’s revenue in 2016). Net profit may reach VND 4,760
bn (-49% YoY). EPS may reach VND 2,077. If we were to exclude the one-off income in 2016,
2017 PBT would grow by 45% YoY.

For 2018, ACV’s total revenue to achieve VND 18,308 bn (+15.1% YoY). Net profit is expected
to reach VND 5,520 bn (+16% YoY). EPS accordingly will be VND 2,409 (+16% YoY).

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Valuation: Raising our 1Y TP to VND 63,000/share, 16% upside, BUY

At the current price of VND 54,500/share, ACV is trading at 2017 and 2018 P/E of 26x and
22.6x respectively, which is still low compared with regional peer averages of 2017 and 2018
P/E of 28x and 25x respectively. ACV’s 2017 and 2018 EV/EBITDA are at 11.5x and 10x based
on the current share price.

Following our higher earnings estimate, we raise our 2018 year end target price for ACV to VND
63,000/share from VND 61,300/share in our previous call, based on combined target
EV/EBITDA of 12x and P/E of 25x, equal to current regional peers and in expectation of: (1)
sustained passenger volume growth of 16-20% for the next few years will strongly support the
company’s earnings. (2) Earning revenue spikes in 2017 and 2018 in effect from domestic fee
hikes. (3) The Company’s HOSE listing in the next 3-6 months will help ACV to be traded more
actively than in the existing UPCOM bourse. We reaffirm our BUY rating for ACV’s shares
with a 16% upside. Please note that when ACV list on HOSE, it might rank in the Top 5
largest market capitalization of the Index.

Investment rationale: Untapped room for improvement in earnings

We believe that ACV is currently at the first phase of development, and exhibits larger room for
catching up to its regional peers based on the following reasons:

Firstly, ACV’s is virtually almost a total monopoly airport operator in Vietnam (except for
Danang international Terminal 2), which will be the largest beneficiary from the booming tourist
flow to Vietnam in the coming time, as well as sustained domestic passenger volume growth
amid a Vietnamese rising middle class with more disposable income. Its approach to generating
business is quite safe, with huge cash generation. ACV’s cash in hand and short-term
investment (more than 3 month deposit) came to VND 17,900 bn (vs. that of VND 16,200 bn as
of 2016). ACV’s EBITDA CAGR from 2012-2018F is forecasted to reach 20%.

ACV’s EBITDA CAGR of 20% from 2012-2018F

14,000 EBITDA

12,000

10,000

8,000
VND bn

6,000

4,000

2,000

-
2012 2013 2014 2015 2016* 2017F 2018F

*Excluding extraordinary income in 2016 Source: ACV, SSI Research forecast

Secondly, ACV’s long term catalyst exhibits potential upside from:

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(1) Aeronautical segment: ACV’s international passenger contribution to total passenger

volume is expected to significantly increase by boosting tourism, which will help enhance
aeronautical revenue growth.

Historical Int’l pax to Vietnam in general and Int’l pax to ACV’s historical passenger volume through airports
Vietnam by air

Int' pax to VN Int' pax to VN by air Int' pax Domestic pax

% YoY % YoY % YoY Int' growth %YoY domestic growth
12.0 35%
90 35%
30%
10.0 80
30%
25%
70
8.0 25%
20% 60

50 20%
Mn px

6.0 15%

10% 40 15%
4.0
30
5% 10%
2.0 20
0% 5%
10
- -5% 0 0%
2012 2013 2014 2015 2016 1H 2017 2012 2013 2014 2015 2016 1H2017

Source: GSO Source: ACV

From 2012-1H2017, amid rapid expansion of domestic airlines, ACV’s international

passenger volume in proportion to total passengers has declined from 35% in 2012 to a
proportion of 29-30% in 2016 and 2017, which are still low in comparison with Airport of
Thailand (with 57% being international passengers and 43% being domestic) and Malaysia
Airports (with 45% being international passengers and 55% being domestic). As such, ACV
aims to increase the proportion of international passenger volume by rearranging flight slots
in order to fully capture an increasing volume of international tourist flows to Vietnam in the
coming time. Therefore, this will support ACV’s aeronautical revenue growth, as
international charges are higher (around 2x) compared with domestic ones.

ACV is the largest airport positioned to benefit from Vietnam’s robust tourism growth in the
coming years ahead, with recent government initiatives launched to boost the tourism sector
such as visa exemption for 5 Western European countries (UK, France, Germany, Spain
and Italy), boosting e-visa utilization, and tourism marketing in general via e-marketing,
television, and other mass media. The Government targets that in the next five years, the
annual growth rate of international tourist volume to Vietnam should increase to about 12%
as compared to 8.5% CAGR in the last 5 years and over 30% growth in 2016-2017. Higher
passenger volumes will in turn improve ACV’s GPM.

Regarding domestic passenger revenue, despite the slowdown in growth from 1H 2017, the
aforementioned increase in fees for domestic aviation charges from 4Q 2017 will help ACV
to realize a high degree of revenue growth during 2017 and 2018 amid sustained sales
volume growth.

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(2) Non-aviation business: in 2016, ACV generated $2.70 USD per pax in non-aeronautical
revenue, which was far lower than that of Airport of Thailand with $11 USD per pax and
Malaysian Airports with $7.18 USD per pax.

Non-aeronautical revenue per pax (USD/pax) in 2016

Non-aeronautical revenue per pax

12
11

10

8 7.18

4
2.70

0
ACV Aiports of Thailand Malaysia Aiports

Source: ACV, AOT TB, MAHB

As such, in the coming time, ACV aims to increase non-aviation revenue growth through
concession revenues (revenue sharing with retailers in airports), together with airport expansion
plans which will enlarge the commercial area utilized for such concessions. Please note that
ACV’s 2016 GPM was roughly 36%, significantly lower than that of the Airport of Thailand PLC,
at more than 67%.

Valuation comparison with peers

EPS growth EV/EBITDA P/E ROE

Name BB ticker Country 2017F 2018F 2017F 2018F 2017F 2018F 2017F 2018F
(%) (%) (x) (x) (x) (x) (%) (%)
Airport of Thailand AOT TB Thailand 11 13 21 19 34 30 18 19
SATS Ltd SATS SP Singapore 4 5 16 15 22 21 3.6 3.4
Japan Airport Terminal 9709 JP Japan 25 9 16 15 34 31 2.8 2.7
Beijing Capital Int'l 694 HK China 33 29 10 9 19 15 2.5 2.3
Shanghai Int'l Airport 600009 CH China 12 17 16 13 23 20 3 2.7
Shenzhen Int'l Airport 000089 CH China 27 18 12 10 25 21 1.7 1.6
Fraport Franfurt Airport FRA GR Germany 31 13 12 11 25 22 2 1.9
Groupo Aeroportuario ASURB MM Mexico 20 11 18 15 28 25 5 5
SAVE SpA SAVE IM Italy 2 14 15 13 17 24 4.8 4.6
Sydney Airport SYD AU Australia 14 11 19 18 41 38 14.9 21.7
Airport Corporation of Vietnam ACV VN Vietnam 45 16 11 9.5 26 23 17.8 18.3
Average 20 14 15 13 27 25 5.8 6.3

Source: Bloomberg, SSI Research

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Risks

(1) Policy risk regarding the privatization of airports, which if implemented would remove ACV’s
monopoly status in Vietnam, and as a result potentially reduce earnings upside. Additionally,
the government’s strict airline regulations will also be a constraint upon potential growth of
the aviation industry in general.

(2) Substantial foreign exchange losses due to heavy dependence upon Japanese ODA loans.

(3) Territorial disputes and viral diseases (such as South China Sea dispute, SARS and bird flu)
may hinder international passenger movement through international airports and impact
passenger loads.

(4) Significant depreciation expenses for expansion projects and the Long Thanh International
Airport megaproject will impact ACV’s GPM and bottom line from 2025 onwards. Long
Thanh International Airport will be mainly funded by ODA loans after 2018. ACV’s debt ratio
will accordingly experience a significant increase (ACV may own 51% stake in Long Thanh
Airport). We have not yet factored this megaproject into our model.

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APPENDIX: ANNUAL FINANCIAL STATEMENTS

VND Billion 2015 2016 2017F 2018F VND Billion 2015 2016 2017F 2018F
Balance Sheet Income Statement
+ Cash 4,466 3,166 6,877 6,591 Net Sales 13,173 13,408 15,913 18,308
+ Short-term investments 12,864 13,640 16,571 21,331 COGS -9,656 -8,650 -9,341 -10,999
+ Account receivables 3,478 3,549 4,855 5,586 Gross Profit 3,517 4,759 6,572 7,309
+ Inventories 712 721 654 770 Financial Income 960 2,722 1,152 1,398
+ Other current assets 295 376 349 403 Financial Expense -811 -988 -1,002 -898
Total Current Assets 21,815 21,452 29,306 34,681 Income from associates 0 0 0 0
+ LT Receivables 179 259 159 183 Selling Expense -428 -227 -159 -183
+ Net Fixed Assets 20,661 21,708 20,821 17,520 Admin Expense -1,203 -965 -827 -952
+ Investment properties 32 32 32 32 Income from business operation 2,055 5,301 5,958 6,916
+ LT Assets in progress 1,054 738 955 1,098 Net Other Income 223 2,461 -8 -15
+ LT Investments 642 1,240 1,256 1,256 Profit Before Tax 2,277 7,762 5,950 6,900
+ Other LT Assets 467 1,358 265 312 Net Income 1,753 9,317 4,760 5,520
Total Long-Term Assets 23,036 25,335 23,488 20,400 NI attributable to shareholders 1,712 9,317 4,760 5,520
Total Assets 44,852 46,787 52,794 55,081 Minority interest 41 0 0 0
+ Current Liabilities 8,151 7,160 7,094 7,639
In which: ST debt 308 263 187 220 Basic EPS (VND) 0 0 2,077 2,409
+ Non-current Liabilities 16,086 14,573 17,431 15,235 BVPS (VND) 11,601 11,159 12,636 14,445
In which: LT debt 13,119 13,964 14,478 15,202 Dividend (VND/share) 0 0 600 600
Total Liabilities 24,237 21,733 24,525 22,874 EBIT 2,367 7,860 6,045 7,001
+ Contributed capital 17,093 21,772 21,772 21,772 EBITDA 5,979 12,223 10,577 12,212
+ Share premium 0 15 15 15
+ Retained earnings 1,807 2,058 5,274 9,212 Growth
+ Other capital/fund 1,714 1,209 1,209 1,209 Sales 24.8% 1.8% 18.7% 15.1%
Shareholders' Equity 20,615 25,054 28,269 32,207 EBITDA 6.7% 104.4% -13.5% 15.5%
Total Liabilities & Equity 44,852 46,787 52,794 55,081 EBIT -31.9% 232.0% -23.1% 15.8%
NI -33.4% 431.5% -48.9% 16.0%
Cash Flow Equity 0.6% 21.5% 12.8% 13.9%
CF from operating activities 4,213 3,430 10,026 6,024 Chartered Capital 5.0% 27.4% 0.0% 0.0%
CF from investing activities -2,814 -1,037 -5,447 -5,760 Total assets 2.5% 4.3% 12.8% 4.3%
CF from financing activities -833 -1,708 -868 -549
Net increase in cash 566 685 3,711 -286 Valuation
Beginning cash 3,897 -7,401 3,166 6,877 P/E N/A N/A 25.0 21.6
Ending cash 4,466 -6,701 6,877 6,591 P/B 0.0 0.0 4.1 3.6
P/Sales N/A N/A 7.1 6.2
Liquidity Ratios Dividend yield N/A N/A 1.2% 1.2%
Current ratio 2.68 3.00 4.13 4.54 EV/EBITDA -0.7 -0.2 10.4 9.0
Acid-test ratio 2.55 2.84 3.99 4.39 EV/Sales -0.3 -0.2 6.9 6.0
Cash ratio 2.13 2.35 3.31 3.66
Net debt / EBITDA 1.47 0.82 0.89 0.68 Profitability Ratios
Interest coverage 26.34 79.93 63.42 69.84 Gross Margin 26.7% 35.5% 41.3% 39.9%
Days of receivables 36.5 44.3 41.4 40.9 Operating Margin 9.5% 34.4% 32.8% 32.5%
Days of payables 56.5 54.2 49.3 43.9 Net Margin 13.3% 69.5% 29.9% 30.2%
Days of inventory 23.7 30.2 26.9 23.6 Selling exp./Net sales 3.3% 1.7% 1.0% 1.0%
Admin exp./Net sales 9.1% 7.2% 5.2% 5.2%
Capital Structure ROE 8.5% 40.8% 17.9% 18.3%
Equity/Total asset 0.46 0.54 0.54 0.58 ROA 4.0% 20.3% 9.6% 10.2%
Liabilities/Total Assets 0.54 0.46 0.46 0.42 ROIC 5.4% 25.7% 11.8% 12.4%
Liabilities/Equity 1.18 0.87 0.87 0.71
Debt/Equity 0.65 0.57 0.52 0.48
ST Debt/Equity 0.01 0.01 0.01 0.01

Source: Company, SSI forecasts

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1. ANALYST CERTIFICATION

The research analyst(s) on this report certifies that (1) the views expressed in this research report accurately reflect
his/her/our own personal views about the securities and/or the issuers and (2) no part of the research analyst(s)’
compensation was, is, or will be directly or indirectly related to the specific recommendation or views contained in this
research report.

2. RATING

Within 12-month horizon, SSIResearch rates stocks as either BUY, HOLD or SELL determined by the stock’s expected
return relative to the market required rate of return, which is 18% (*). A BUY rating is given when the security is expected to
deliver absolute returns of 18% or greater. A SELL rating is given when the security is expected to deliver returns below or
equal to -9%, while a HOLD rating implies returns between -9% and 18%.

Besides, SSIResearch also provides Short-term rating where stock price is expected to rise/reduce within three months
because of a stock catalyst or event. Short-term rating may be different from 12-month rating.

Industry Rating: We provide the analyst’ industry rating as follows:

 Overweight: The analyst expects the performance of the industry over the next 6-12 months to be attractive vs. the
relevant broad market

 Neutral: The analyst expects the performance of the industry over the next 6-12 months to be in line with the relevant
broad market

 Underweight: The analyst expects the performance of the industry over the next 6-12 months with caution vs. the
relevant broad market.

*The market required rate of return is calculated based on 5-year Vietnam government bond yield and market risk premium derived from using
Relative Equity Market Standard Deviations method. Our rating bands are subject to changes at the time of any significant changes in the above
two constituents.

3. DISCLAIMER

The information, statements, forecasts and projections contained herein, including any expression of opinion, are based
upon sources believed to be reliable but their accuracy completeness or correctness are not guaranteed. Expressions of
opinion herein were arrived at after due and careful consideration and they were based upon the best information then
known to us, and in our opinion are fair and reasonable in the circumstances prevailing at the time, and no unpublished price
sensitive information would be included in the report. Expressions of opinion contained herein are subject to change without
notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any
securities. SSI and other companies in the SSI and/or their officers, directors and employees may have positions and may
affect transactions in securities of companies mentioned herein and may also perform or seek to perform investment banking
services for these companies.

This document is for private circulation only and is not for publication in the press or elsewhere. SSI accepts no liability
whatsoever for any direct or consequential loss arising from any use of this document or its content. The use of any
information, statements forecasts and projections contained herein shall be at the sole discretion and risk of the user.

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4. CONTACT INFORMATION

Institutional Research & Investment Advisory

Kim Nguyen
Analyst, Industrials
 Tel: (84-28) 3824 2897 ext. 2140
kimntt@ssi.com.vn

Phuong Hoang Hung Pham Giang Nguyen, ACCA

Deputy Managing Director, Associate Director Associate Director
Head of Institutional Research & Investment Advisory hungpl@ssi.com.vn giangntt@ssi.com.vn
phuonghv@ssi.com.vn

WWW.SSI.COM.VN SAIGON SECURITIES INC. HO CHI MINH CITY HANOI

Member of the Ho Chi Minh
Stock Exchange, Regulated
by the State Securities
Commission
72 Nguyen Hue Street, 1C Ngo Quyen Street, Ha Noi City
District 1 Tel: (84-24) 3936 6321
Ho Chi Minh City Fax: (84-24) 3936 6311
Tel: (84-28) 3824 2897 Email: info@ssi.com.vn
Fax: (84-28) 3824 2997
Email: info@ssi.com.vn

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