HVN – Strong recovery in transportation business, payables cancellation futher supports earnings - Earnings Flash
  • 2024-08-01T00:00:00
  • Company Research

HVN reported H1 2024 net revenue of VND52.6tn (USD2.1bn; +19.5% YoY). The company's H1 2024 NPAT-MI was VND5.6tn (USD220mn), compared to the loss of VND1.5tn in H1 2023. The revenue for H1 2024 accounted for 45.9% of our full-year 2024 projection of VND115.6tn. Additionally, H1 2024 NPAT-MI exceeded our expectation as we had forecasted a full-year 2024 loss of VND1.3tn. 

Vietnam Airlines’ (VNA) standalone revenue increased 24.6% YoY to VND41.5tn (USD1.6bn) in H1 2024. In addition, HVN’s subsidiaries' revenue increased by 6.1% YoY to VND11.7tn (USD459mn). Transportation revenue increased 24.9% YoY to VND40.9tn (USD1.6bn) and total auxiliary revenue slightly increased by 2.8% YoY to VND555bn (USD21.8mn).

HVN’s H1 2024 gross profit was VND6.8tn (USD267mn), a significant 127.1% increase from H1 2023 of VND3tn.

In H1 2024, Vietnam Airlines transported approximately 11.5 million passengers and 143 thousand tons of cargo, increasing by 10% and 42.1% YoY, respectively. The international market also recorded nearly 20 million passengers, up 42% YoY.

HVN’s operating profit was VND3.6tn (USD141mn) in H1 2024, compared to the loss of VND51bn in H1 2023. The operating margin improved from -0.1% in H1 2023 to 6.8% in H1 2024, significantly outperforming our 2024 forecast of 0.8%. 

In H1 2024, financial income decreased by 28.8% YoY to VND329bn (USD13mn), while financial expenses increased by 91.9% YoY to VND2.9tn (USD114mn). HVN recorded a net other income of VND4.5tn (USD176.5mn) in H1 2024, which is significantly higher than the loss of VND222bn (USD8.7mn) in H1 2023. We attribute the surge in other income for HVN to the cancellation of payables for Pacific Airline’s lessor.

HVN’s Q2 2024 & H1 2024 results

 

 Q2 2023 

 Q2 2024 

 YoY 

 H1 2023 

 H1 2024 

 YoY 

 H1 as % of 2024F 

 Revenue 

20,635 

24,859 

20.5%

44,275 

53,127 

20.0%

45.94%

-  VNA 

15,454 

19,314 

25.0%

33,290 

41,471 

24.6%

46.2%

-  Transportation revenue 

15,194 

19,035 

25.3%

32,750 

40,916 

24.9%

46.9%

 Total auxiliary 

 260 

 279 

7.0%

 540 

 555 

2.8%

22.7%

 Subsidiaries 

5,181 

5,545 

7.0%

10,986 

11,656 

6.1%

45.0%

 Net Revenue 

20,504 

24,630 

20.1%

43,998 

52,594 

19.5%

45.8%

- Gross Profit 

1,034 

2,713 

162.5%

2,993 

6,798 

127.1%

84.3%

- SG&A 

 (1,515)

 (1,318)

-13.0%

 (3,044)

 (3,225)

5.9%

45.2%

- Operating Profit 

(481)

1,396 

N.M

(51)

3,574 

N.M

384.7%

 Financial income 

 96 

 191 

99.3%

 462 

 329 

-28.8%

91.2%

 Financial expense 

(738)

 (1,429)

93.7%

 (1,511)

 (2,900)

91.9%

95.2%

 Gain/loss from associates 

 35 

 85 

138.8%

 70 

 140 

99.9%

187.2%

 Net other income 

(184)

 904 

N.M

(222)

4,532 

N.M

N.M

 PBT 

 (1,272)

1,146 

N.M

 (1,253)

5,674 

N.M

N.M

 NPAT-MI 

 (1,415)

 934 

N.M

 (1,519)

5,628 

N.M

N.M

 

 

 

 

 

 

 

 

GPM

5.0%

11.0%

 

6.8%

12.9%

 

 

OPM

-2.3%

5.7%

 

-0.1%

6.8%

 

 

NPM

-6.9%

3.8%

 

-3.5%

10.7%

 

 

Source: HVN, Vietcap

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