Vietnam Airports Corporation (coded ACV on UPCoM) has just announced the results of seeking shareholders’ opinions in writing on the plan to distribute accumulated undistributed post-tax profits up to the end of 2023 (21,191,793,178,756 VND).
Accordingly, 96.465% agreed to pass the proposal on the plan to distribute accumulated undistributed post-tax profits as of December 31, 2024.
According to the plan, ACV will allocate 7,130 billion VND to the development investment fund and the remaining 14,000 billion VND for dividend payment in shares. ACV expects to issue about 1.4 billion shares, a ratio of 64.58% (holding 100 shares will receive 64.58 new shares).
This is the first time ACV has paid dividends in shares since its equitization and listing on the stock exchange in 2016. From 2016 to 2018, ACV also paid cash dividends at a rate of 6-9%.
If successful, ACV’s charter capital will increase from 21,771 billion to 35,830 billion VND. According to the ballot count, as of May 7, ACV had a total of 10,653 shareholders. Of which, the Ministry of Finance is the largest shareholder, holding nearly 2.08 billion ACV shares, accounting for up to 95.4%. ACV’s Trade Union also owns more than 3 million shares.
On May 29, ACV will close the list of shareholders to attend the 2025 Annual General Meeting of Shareholders. The meeting is expected to be held in late June. The main contents include reporting on the results of 2024 and the orientation of business activities in 2025, the plan for fund allocation and profit distribution, proposals on salaries and allowances, approval of the auditing unit, etc.
Recently, VCSC increased the target price by 4% and upgraded the recommendation from “Cautious” to “Buy” for ACV as the ACV stock price has decreased by 11% in the past 3 months while the market corrected.
VCSC increased the target price because VCSC updated the valuation model from the end of 2025 to mid-2026. This offsets more of the higher foreign exchange loss of VND 1,000 billion (compared to VND 374 billion in the previous forecast) due to the assumption that the JPY/VND exchange rate increased stronger at 10%/1% year-on-year (compared to 4% each year in the previous forecast), based on Bloomberg’s consensus estimate. VCSC adjusted the forecast of post-minority net profit for 2025/2026/2027 by -4%/1%/0%, respectively.
At the same time, VCSC maintains the assumption that ACV will reverse most of the provisions for doubtful debts in the period of 2025-2028, with an expected reversal of VND 500 billion in 2025. Although ACV has made additional provisions for bad debts in Q1 2025, VCSC expects ACV to reverse provisions in the following quarters.
According to VCSC, VCSC’s target price corresponds to the projected EV/EBITDA multiples for 2025/2026 of ACV at 18.3x/15.8x compared to the 2017-2020 average of 15.8x.
VCSC stated that the risks for ACV include higher-than-expected bad debt provisions or construction investment capital, slower-than-expected airport expansion, and lower-than-expected passenger numbers.
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