Airport Corporation of Vietnam (UPCOM: ACV) | Initiation Report, ADD– 1Y Upside +12.0%

Company Overview

Airports Corporation of Vietnam (ACV) is the largest enterprise in Vietnam in terms of airport operation, transportation, and aviation infrastructure investment management.

Established in 2012 by the Minister of Transport through the merger of three entities, Northern Airports Corporation, Central Airports Corporation, and Southern Airports Corporation, ACV has been listed on the UpCoM trading system since November 21, 2016.

ACV currently manages and operates 22 of Vietnam’s 23 civil airports, comprising 9 international and 13 domestic airports. With its near-monopoly status, the company is uniquely positioned to capture the upside from the country’s expanding aviation sector, underpinned by robust economic growth and a rising middle class

Financial Performance

ACV rebounded significantly after Covid-19, with net profit after tax (NPAT) rising from VND 6,193 bn in 2022 to VND 10,421 bn in 2024, a compound annual growth rate (CAGR) of 29.7%/year. The key driver came from the full recovery of international routes, with robust growth in international passengers volume, enabling ACV to optimize operations at major airports such as Tan Son Nhat, Noi Bai, and Da Nang.

In H1 2025, revenue increased to VND 12,727 bn (+13.5% YoY) thanks to strong passenger volume growth (total 59.7 mn, +9.1% YoY), particularly from international passenger throughput (16.9 mn, +23.6% YoY). However, NPAT fell to VND 4,923 bn (-10.3% YoY) as operating and depreciation expenses from the newly launched Tan Son Nhat Terminal 3 were booked starting from May 2025, while operational efficiency remained in its initial stage and was insufficient to offset the increase in operating costs.

By end-Q2/2025, ACV’s total assets reached VND 82,809 bn, an increase of VND 5,528 bn (+7.2% YTD). This was mainly driven by (i) the official launch of Tan Son Nhat Terminal 3, with around VND 10,500 bn capitalized into fixed assets, and (ii) additional construction-in-progress for Long Thanh International Airport (LTIA) Phase I, which rose by about VND 6,000 bn to VND 18,746 bn. Consequently, the percentage of fixed assets increased from 47.3% to 57.1% of total asset

Investment Thesis

o       The aviation sector is experiencing robust growth trajectory

o       Major capacity additions secure long-term growth

o       Monopoly position with strategic advantages

o       Earnings to bottom in 2026, strong rebound expected post 2027

o       Attractive valuation with potential re-rating catalyst

Valuation and Recommendation

We apply three valuation methods (DCF, P/E, and EV/EBITDA) to derive ACV’s intrinsic value. With ACV’s NPAT are projected to be flat in 2025-2027 and only ramp-up in 2028, we initiate a ADD recommendation with a 12-month target price of 68,400 VND/share, implying a potential upside of +12.0% compared to the closing price of VND 61,100 on September 03, 2025