HVN - Negative shareholder equity after another loss-making year

- HVN announced 2022 revenue of VND70.6tn (USD3.0bn; +153% YoY) and a net loss of VND10.5tn (USD449mn — equal to 81% of the loss in 2021). HVN’s revenue and net loss in 2022 were equivalent to 101% and 115% of our 2022F forecasts, respectively.

- In Q4 2022, HVN’s revenue jumped 112% YoY to VND19.5tn (USD836mn) with a net loss of VND2.7tn (USD114mn) vs a VND1.1tn (USD46mn) net loss in Q4 2021.

- The airline reported a higher-than-expected 2022 net loss that was mainly attributed to the slow recovery of the international transportation segment as well as surges in fuel costs and financial expenses. However, we expect a further recovery in international flights and an improvement in profit margins in 2023.