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SCS [OUTPERFORM +10.7%] - Gross margins outperform expectations - Update

Company Research

10 Nov 2017

We reiterate our OUTPERFORM rating on SCS and raise our target price by 19% to VND124,000, implying a total stock return of 10.7% inclusive of a 4.7% dividend yield. Our target price revision is mainly due to: (1) gross margin expansion, (2) updated WACC based on new market data and (3) an increased premium from the peer median PER ratio given SCS’s outstanding profitability profile (from 20% to 35% premium).
Tags: SCS

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