- ACV released Q2 2021 results with revenue of VND1.6tn (USD68mn; +56% YoY) and NPAT-MI of VND510bn (USD22mn).
- Excluding contributions from State-invested aviation assets (runways), ACV’s revenue was up 23% YoY to VND1.2tn (USD53mn) in Q2 2021 while its NPAT-MI was VND413bn (USD18mn) vs a loss of VND320bn (USD14mn) in Q2 2020.
- Compared to Q1 2021, ACV posted weaker results with NPAT-MI plunging 41% QoQ due to the negative impact of COVID-19’s resurgence in Vietnam that began in late April 2021.
- Meanwhile, ACV posted strong YoY growth in Q2 2021 that was mainly due to an abnormally low base in Q2 2020 during Vietnam’s first waves of COVID-19. Management also shared that Vietnam’s domestic aviation market was strong in April 2021.
- In H1 2021, ACV posted results with revenue down 25% YoY to VND3.5tn (USD150mn) and NPAT-MI up 12% YoY to VND1.4tn (USD59mn). The bottom-line YoY change was distorted by contributions from runways in 2021.
- Excluding contributions from runways, ACV’s revenue plunged 41% YoY to VND2.7tn (USD118mn) while its NPAT-MI was down 11% YoY to VND1.1tn (USD47mn). The weak results in H1 2021 were mainly due to the high base of Q1 2020 as Vietnam did not restrict international passenger arrivals due to COVID-19 until March 2020.
- ACV’s H1 2021 revenue and core NPAT-MI (excluding contributions from State-invested assets and abnormal foreign exchange revaluation gains) completed 31% and 8% of our respective full-year forecasts.
- In addition, the recent COVID-19 situation in Vietnam is beyond our current expectation and has negatively affected Vietnam’s domestic aviation market. We therefore see potential downside risk to our 2021F forecasts for ACV.