SSI – RESEARCH INSTITUTIONAL RESEARCH & INVESTMENT ADVISORY

Airport Corporation of Vietnam (ACV: UPCOM)

BUY – 1Y Target Price: VND 115,100
Current price: VND 88,280

Kim Nguyen EARNINGS UPDATE

kimntt@ssi.com.vn
+84 28 3824 2897 ext. 2140 Profound earnings growth in next 3 years
15 December 2017  Normalized 9M 2017 PBT growth recorded 3.5x YoY, backed by 13% YoY growth in passenger
INDUSTRIALS - VIETNAM volume

 Our estimates reveal EBITDA growth of 17% CAGR during 2017F-2019F, backed by resilient
Key figures
passenger growth and fee hike
Market cap (USD mn) 8,444
Market cap (VND bn) 191,809  State ownership divestments in 2018-2019 and HOSE listing will be supportive catalysts
Outstanding shares (mn) 2,177
52W high/low (VND 1,000) 96.5/43  Given strong earnings outlook, we revise up 1 year target price to VND 115,100/share, offering 30%
Average 3M volume (share) 124,449 upside
Average 3M value (USD mn) 0.31
Average 3M value (VND bn) 7.09 9M 2017 review: decent earnings growth
Foreign ownership (%) 3.53
State ownership (%) 95.4
We use the parent company’s 9M results for comparison. According to the IPO plan, ACV

Source: SSI Bloomberg

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
ACV Price & Trading Volume (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 from March 2017.

Margin
9M 9M Completion of
(bn VND) YoY 9M 9M
2017 2016 2017 target 2016
2017 2016
Net sales 11,625.6 9,962.6 16.7% 87.5%
Gross profit 5,105.7 4,249.8 20.1% 43.9% 42.7% 40.5%
Operating profit 4,683.4 2,721.6 72.1% 40.3% 27.3% 45%
EBIT 4,770.7 5,258.6 -9.3% 41.0% 52.8% 64.1%
Source: Bloomberg EBITDA 7,973.2 8,316.3 -4.1% 68.6% 83.5% 89.7%
Company Snapshot Pretax profit 4,699.0 5,182.6 -9.3% 128.1% 40.4% 52.0% 63.3%
The parent company of Airports Corporation of Vietnam’s
Net income 3,838.8 4,104.7 -6.5% 33.0% 41.2% 50.6%
(ACV) predecessor was initially founded in 1976 under NI attributable to
3,838.8 4,104.7 -6.5% 33.0% 41.2% 50.6%
the direct management and operation of the Civil Aviation shareholders
Administration of Vietnam (CAAV) as Northern, Central
and Southern Regional Airport Authority. ACV was Source: ACV parent company FS
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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ACV parent company generated 3Q 2017 revenue of VND 3,905bn (+13.8% YoY, +2.4% QoQ), leading to 9M
2017 top line of VND 11,626bn (+16.7% YoY), completing 87.5% of full year target. Strong 9M 2017 revenue
mainly derived from 15% YoY growth in aeronautical revenue (~81.5% of total revenue), 27% YoY growth in
non-aeronautical revenue (~10% total revenue) and 10% YoY growth in retails (~8.5% total revenue).

In 9M 2017, ACV’s total passenger, flight movement and cargo& parcel throughput increased by 13% YoY, 30%
YoY and 10% YoY, respectively, which mainly supported ACV’s revenue growth during the period. Please note
that we already excluded international passenger volume for the period from May 2017-Sept 2017 in Danang
international airport (DIA) in ACV’s 9M 2017 total pax volume as the new terminal commenced operation from
May 2017. The new terminal was developed and is operated by Da Nang International Terminal Investment and
Operation JSC (AHT) (ACV: 20%, the remaining stakes are owned by Thang Long Air Services Corporation, AOV
Investment Corporation and Ha Noi Construction Corporation). DIA is among the most hectic airports in
Vietnam with strong growth in tourist arrivals.

Regarding the earnings, in 3Q 2017, the parent company recorded VND 1,739bn in PBT (+157.6% YoY and -
21.8% QoQ), generating 9M 2017 PBT of VND 4,699bn (-9.3% YoY), surpassing 28% of full year target. We
note that if we were to exclude one off items of VND 3,834bn in 1Q 2016 (VND 1,444bn: revaluing financial
investments; VND 2,489bn: reversal of advance booking for maintenance expenses; VND 98bn: land use
expenses), ACV’s 9M 2017 PBT would grow by 3.5x YoY. If we were to exclude above one-off income in 1Q
2016 and FX losses on ODA loan in both 9M 2016 and 9M 2017, 9M 2017 PBT would grow by 34% YoY,
reaching VND 5,190bn, implying a profound advancement in bottom line from core business. 9M 2017 core
PBT improved to 45% from 38.9% in 9M 2016, mainly driven by (1) GPM expansion to 43.9% from 42.7% in
9M 2016 and (2) squeezing in SG&A to sales ratio to 4.9% from that of 7.5% in 9M 2016.

Outlooks

4Q 2017: slower growth in total int’l pax traffic relating to transfering ACV’s int’l pax from the
current domestic terminal to the new international terminal in DIA

We project ACV’s international passenger’s volume growth in 4Q 2017 and entire 2017 to slow down to 14%
YoY and 16% YoY, respectively (we exclude international passenger volume in DIA for 8 months from May-Dec
2017) (vs that of 21% YoY in 4Q 2016 and 25% YoY in 2016).

Nevertheless, we believe that moving passenger in DIA will not significantly affect ACV’s bottom line growth in
4Q 2017 and 2018 because DIA only contributes around 9% to ACV’s total revenue according to our projection.
On the other hand, traffic volume growths in 2 major airports: Tan Son Nhat International Airport (TIA) and Noi
Bai International Airport (NIA), together with domestic fee hikes implemented from 1 st Oct 2017 for ACV’s 22
airports (see our previous report) will offset the above loss in international passenger charges and international
concession revenue. According to ACV, TIA and NIA are the company’s main source of profit because other
airports are still making losses or breakeven.

2018-2019: Robust Vietnamese tourism industry will prolong

We are bullish on Vietnamese tourism thanks to (1) increased middle class in Vietnam who tends to spend more
on travelling and (2) double-digit growth of international tourist flow to Vietnam from 2016 up until now. ACV is
in the best position benefiting from Vietnamese booming tourism industry

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BMI forecasted that Vietnam’s international tourist arrivals might grow at 6.3% CAGR from 2017F-2021F. The
positive inbound tourist growth forecast is based on (1) recent implementation of simplified “e-visa’ policy
procedures and extended visa exemptions for tourists from the UK, France, Spain, Germany, and Italy until June
2018 to further boost tourism, (2) inbound arrivals to be bolstered by increasing interest from neighboring
countries such as China, South Korea, and Japan. In fact, this year up to October, international tourists to
Vietnam grew by 28.1% YoY, recording 10.5 mn pax, in which tourists travelling by air recorded 8.9 mn pax, up
31% YoY.

Historical International passenger to Vietnam by air ACV’s international passenger volume

Int'l tourists Int'l tourists by air Total passenger International passenger

12.0 Int'l tourist growth Int'l tourists by air growth 35% 100 Total pax growth Int'l pax growth 30%

90
10.0 30% 25%
80

25% 70
8.0 20%
60
20%
6.0 50 15%
15%
40
4.0 10%
10% 30

20
2.0 5% 5%
10
0.0 0% 0 0%
2010 2011 2012 2013 2014 2015 2016 9M2017 2011 2012 2013 2014 2015 2016 2017F

Source: Vietnam National Administration of Tourism Source: ACV

2018-2021: Airport upgrades will accommodate more traffic volume and concession spaces

ACV continues to face bottleneck at TIA, which creates bad service experience for customers but is actually
positive for shareholders given strong passenger volume, especially strong international passenger volume and
low costs thanks to fully depreciated assets. Regarding NIA, ACV’s 2 nd largest airport, it may also surpass
designed capacity in next 2 years because it almost reached around 80-90% of designed capacity in 2017F,
according to our projection. Therefore, ACV plans to upgrade both airports and other major airports in order to
ease conjunction situations and provide additional concession spaces for future growths

 TIA: In 9M 2017, TIA received 27.3 mn pax in total passenger volume (+12% YoY vs a growth of 24%
YoY in 9M 2016). During the first 9 months of this year, TIA’s international terminal has received 10mn
pax(+14.9% YoY), reaching full designed capacity of 10mn px and expected to run at more than 130% of
designed capacity and record roughly 13.7mn pax(+15% YoY) in the entire 2017 (vs actual capacity of
119% in 2016). On its domestic terminal, the terminal is forecast to run at 149% of designed capacity in
2017F and may reach 22.3mn pax (+8% YoY) (vs actual capacity of 137% in 2016) due to aggressive
expansion of domestic LCCs.

ACV has been expanding TIA’s international terminal during 2017-2018, enabling to receive 13 mn pax per
year (up 30% compared with the current designed capacity of 10mn pax p.a)

Additionally, from 2018-2020, ACV may construct terminal 4 at TIA for LCCs’ passenger with 15mn pax in
designed capacity, which is expected to handle more passengers amid aggressive fleet expansion of both
domestic and regional LCCs.

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Currently, TIA accounts for around 44% of ACV’s total revenue while its total cost only accounts for roughly
16% of ACV’s total cost. We believe that ACV will continue to enjoy the benefit of enhanced efficiency at
Tan Son Nhat International Airport (TIA) thanks to prolonged positive traffic volume growth in next 3 years
and low expenses (domestic terminal was fully depreciated).

 NIA: in 2017F, we estimate NIA’s international terminal can reach 90% of designed capacity, reaching
8.9mn pax(+21% YoY) and almost reach full capacity after only 3 years operation (commenced operation
from Dec 2014). Domestic terminal may run at 150% of designed capacity, reaching 14.9mn pax this
year(+13% YoY). NIA contributes roughly 42% to ACV’s total revenue thanks to its high passenger volume
and concession revenue although TIA’s depreciation and maintenance expenses are the highest among
ACV’s 22 airports (~30% of ACV’s total cost).

ACV has started expanding domestic terminal at end 2017 and will be completed by 2018, upgrading its
designed capacity to 15 mn pax per years (+36%). This is expected to boost both aeronautical revenue
and concession revenue in NIA after surpassing designed capacity in next 2 years.

CAPEX: Expansion plans for TIA, NIA and other major airports are estimated to cost VND 35 trillion from 2017-
2021, which will be funded by ACV’s internal resource thanks to its high cash and deposit (VND 19,700bn as of
3Q 2017) and estimated EBITDA of more than VND 10 trillion per year in next 4 years.

Forecasts: 17% EBITDA CAGR from 2017F-2019F

As mentioned above, we adjust our forecast on ACV’s total international passenger growth in 2017F from 20%
YoY to 16% YoY and in 2018F from 5% YoY to 8% YoY due to the transfer of international passengers volume to
new international terminals in DIA from May 2017-Dec 2017. We still forecast ACV’s EBITDA to grow by 17%
CARG from 2017F-2019F, driven by below catalysts:

 We forecast passenger charges (~47% of total revenue) to grow by 6% YoY in 2017F, 17% YoY in 2018F
and 17% YoY in 2018F thanks to domestic fee hikes implemented from 1st Oct 2017, following our total
passenger growth assumption of 11.7% YoY in 2017F (~90.6mn pax), 7.96% YoY in 2018F(~97.8mn
pax) and 10.14%YoY in 2019F(~107.7mn pax). As such, ACV’s total passenger may grow at 9% CAGR
from 2017F-2019F (vs 26% CAGR from 2014-2016). Except for DIA and Cam Ranh International Airport ’s
international passenger volume(international pax moving to a new terminal from mid 2018), ACV’s
remaining airport may record 12% CAGR in total pax from 2017F-2019F based on our projection.

The fee hikes are highlighted by domestic passenger service charges (PSC)to increase 7%-43% YoY during
4Q 2017- 3Q 2018 at Class A Airports; 16.7%-33% YoY during 4Q 2017-3Q2018 at Class B Airports,.

 We forecast landing charges (~14% of total revenue) to grow by 19%YoY in 2017F, 19% YoY in 2018F and
14% YoY in 2019F, backed by:

 Aircraft movement growths are forecast to achieve 14% YoY in 2017F, 12.2% YoY in 2018F and 10%
YoY in 2019F

 Domestic landing charge will be increased by 5% YoY during 4Q 2017-2Q 2018 and up 15% YoY from
3Q 2018 onwards.

 Concession revenue (non-aeronautical revenue and retails) (~18% of total revenue) is expected to grow by
15% YoY, 9% YoY and 10% YoY in 2017F, 2018F and 2019 respectively thanks to expansion of T2 in TIA,
T1 in NIA, which will accommodate more shops for revenue-sharing and leasing spaces.
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 We assume that VND may depreciate by 3% against the JPY in both 2017 and 2018. We assume no FX
loss in 2019 .

Consolidated earnings forecast for 2017F-2019F

VND bn 2017F YoY 2018F YoY 2019F YoY

Net revenue 15,109 13%* 17,669 16.2% 20,183 14.2%
GPM 39.2% 41.2% 37.8%
Normalized EBITDA 10,469 64.2% 12,286 17.4% 14,329 16.6%
Normalized EBITDA margin 69.3% 69.5% 71.0%
Normalized PBT 5,843 106.1% 7,219 23.5% 8,056 11.6%
Normalized PBT margin 33% 36% 37%
Passengers (mn) 90.6 11.7% 97.8 8.0% 107.7 10.1%
International 27.7 15.7% 29.8 7.9% 34.3 15.0%
Domestic 62.9 10.0% 68.0 8.0% 73.4 8.0%

Source: ACV, SSI Research

*We exclude SGN and SAS’s 2016 revenue in our YoY comparison due to above reasons

Valuation: current valuation is still justified and offering 30% upside, 2018 target price of
VND 115,100/share, BUY

We believe that ACV deserves a premium valuation compared with regional peers based on:

(1) Its monopoly situation in Vietnam’s airport operation industry amid Vietnam’s robust tourism industry and
changes in domestic travel methods from by bus and trains to by air

(2) ACV’s clear earnings outlooks of 17% CAGR growth in next 3 years

(3) Expansion plans in overcapacity airports will create more passengers handling capability as well as enhance
concession revenue growths

(4) Government divestment plans from the current ownership from 95.4% to 75.4% in 2018 (either through
selling stakes to strategic partner or through selling stakes in the exchanges) and to 65% by 2019. The
divestment will potentially reduce government’s influence on the company and empower more efficiency and
transparency in management

(5) Plan to move from UPCOM to HOSE in 2Q 2018

(6) Given 17% CAGR growth in EBITDA from 2017F-2019F, ACV’s EV/EBITDA will fall from 18.3x in 2017F to
15.6x in 2018 and 13.3x in 2019, which are quite attractive

As such, based on above catalysts, we think that ACV deserves a target EV/EBITDA of 20x in 2018, a premium
compared with major regional airports’ average EV/EBITDA of 14x and equal to Airport of Thailand’s (AOT TB)
valuation back in 2012 with similar market cap of USD 9.5bn and 21% CAGR in EBITDA from 2012-2014 in
official results (vs analysts’ consensus of 11% CAGR in EBITDA from 2012-2014). ACV’s total passenger CAGR
is projected at 9% from 2017F-2019F (vs that of 11% of AOT from 2012-2014). Furthermore, we note that
ACV’s 2018 ROE will be 19%, higher than AOT’s ROE of 12%-15% from 2013-2016. Therefore, we believe that
our target valuation for ACV is not aggressive

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As a result, we arrive at 2018 target price for ACV at VND 115,100/share, translating to an upside of 30% from
the current price. We recommend to BUY the stock

Risks

(1) Policy risk regarding privatizing 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.

(2) Substantial foreign exchange loss due to heavy dependence on 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. The inauguration timeline has not been decided by the National Congress of
Vietnam but we project that it will be after 2020. 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.

Ticker Country EBITDA growth (%) PER (x) PBR (x) EV/EBITDA (x) ROE(%)
VND bn 2017F 2018F 2017F 2018F 2017F 2018F 2017F 2018F 2018F
Bejing Capital Int' 694 HK China 9% 37% 16 13 2.0 1.8 9.6 7.9 9%
Malaysia Airport Holdings MAHB MK Malaysia 1% 22% 55 36 1.7 1.6 10 9.4 0%
SATS SATS SP Singapore 2% 10% 23 22 3.5 3.3 18 17 17%
Airport of Thailand AOT TB Thailand 19% 6% 43 36 6.1 5.6 27 23 17%
Airport Corporation of Vietnam ACV VN Vietnam 64% 17% 42 34 6.9 5.7 18.3 15.6 19.0%
Average 19% 18% 36 28 4.04 3.60 17 15 12%

Source: Bloomberg, SSI Research

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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 4,960 2,892 Net Sales 13,173 14,650 15,110 17,669
+ Short-term investments 12,864 13,640 16,571 21,246 COGS -9,656 -8,824 -9,184 -10,396
+ Account receivables 3,478 4,248 4,610 5,391 Gross Profit 3,517 5,826 5,926 7,273
+ Inventories 712 721 643 728 Financial Income 960 1,385 1,198 1,388
+ Other current assets 295 376 333 388 Financial Expense -811 -1,036 -559 -575
Total Current Assets 21,815 22,151 27,117 30,644 Income from associates 20.5 52.5 223 242.4
+ LT Receivables 179 259 151 177 Selling Expense -428 -700 -151 -177
+ Net Fixed Assets 20,661 21,708 22,580 22,000 Admin Expense -1,203 -1,282 -786 -919
+ Investment properties 32 32 32 32 Income from business operation 2,055 4,245 5,851 7,234
+ LT Assets in progress 1,054 738 907 1,060 Net Other Income 223 2,424 -8 -14
+ LT Investments 642 1,240 1,256 1,256 Profit Before Tax 2,277 6,669 5,843 7,219
+ Other LT Assets 467 1,208 260 295 Net Income 1,753 5,290 4,675 5,775
Total Long-Term Assets 23,036 25,185 25,185 24,820 NI attributable to shareholders 1,712 5,105 4,675 5,775
Total Assets 44,852 47,337 52,302 55,588 Minority interest 41 185 0 0
+ Current Liabilities 8,151 8,255 6,975 7,220
In which: ST debt 308 263 184 208 Basic EPS (VND) 0 1,405 2,040 2,520
+ Non-current Liabilities 16,086 14,028 17,187 14,693 BVPS (VND) 11,601 11,159 12,599 15,119
In which: LT debt 13,119 13,964 14,235 14,662 Dividend (VND/share) 0 0 600 0
Total Liabilities 24,237 22,283 24,162 21,913 EBIT 2,367 6,769 5,937 7,316
+ Contributed capital 17,093 21,772 21,772 21,772 EBITDA 5,979 10,210 10,469 12,286
+ Share premium 0 15 15 15
+ Retained earnings 1,807 2,058 5,193 10,680 Growth
+ Other capital/fund 1,714 1,209 1,209 1,209 Sales 24.8% 11.2% 3.1% 16.9%
Shareholders' Equity 20,615 25,054 28,188 33,675 EBITDA 6.7% 70.8% 2.5% 17.4%
Total Liabilities & Equity 44,852 47,337 52,351 55,588 EBIT -31.9% 186.0% -12.3% 23.2%
NI -33.4% 201.8% -11.6% 23.5%
Cash Flow Equity 0.6% 21.5% 12.5% 19.5%
CF from operating activities 4,213 5,629 10,373 6,417 Chartered Capital 5.0% 27.4% 0.0% 0.0%
CF from investing activities -2,814 -2,597 -7,464 -8,937 Total assets 2.5% 5.5% 10.5% 6.0%
CF from financing activities -833 -2,817 -1,115 451
Net increase in cash 566 215 1,795 -2,068 Valuation
Beginning cash 3,897 2,935 3,166 4,960 P/E 0.0 34.6 25.5 20.6
Ending cash 4,466 3,166 4,960 2,892 P/B 0.0 4.4 4.1 3.4
P/Sales 0 7.2 7.5 6.4
Liquidity Ratios Dividend yield 0 0.0% 1.2% 0.0%
Current ratio 2.68 2.68 3.89 4.24 EV/EBITDA 0.0 10.1 18.3 13.3
Acid-test ratio 2.55 2.55 3.75 4.09 EV/Sales 0.0 7.0 7.1 6.1
Cash ratio 2.13 2.04 3.09 3.34
Net debt / EBITDA 1.47 0.98 0.98 0.87 Profitability Ratios
Interest coverage 26.34 67.75 63.35 75.69 Gross Margin 26.7% 39.8% 39.2% 41.2%
Days of receivables 36.5 40.5 42.4 40.6 Operating Margin 10.4% 24.1% 33.2% 35.5%
Days of payables 56.5 53.1 49.7 44.7 Net Margin 13.3% 36.1% 30.9% 32.7%
Days of inventory 23.7 29.6 27.1 24.1 Selling exp./Net sales 3.3% 4.8% 1.0% 1.0%
Admin exp./Net sales 9.1% 8.7% 5.2% 5.2%
Capital Structure ROE 8.5% 23.2% 17.6% 18.7%
Equity/Total asset 0.46 0.53 0.54 0.61 ROA 4.0% 11.5% 9.4% 10.7%
Liabilities/Total Assets 0.54 0.47 0.46 0.39 ROIC 5.4% 14.6% 11.6% 12.8%
Liabilities/Equity 1.18 0.89 0.86 0.65
Debt/Equity 0.65 0.57 0.51 0.44
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. This report also does not recommend to U.S. recipients the use of SSI to effect trades in any security and is not
supplied with any understanding that U.S. recipients will direct commission business to SSI. 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

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Commission
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Tel: (84-28) 3824 2897 Email: info@ssi.com.vn
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