- 2024-01-30T00:00:00
- Company Research
- VEA announced its 2023 results, including revenue of VND3.8tn (USD157mn; -19% YoY) and NPAT-MI of VND6.2tn (USD255mn; -18% YoY), fulfilling 95% and 97% of our respective full-year forecasts. We see no material risk to our current projection, pending a more comprehensive review.
- In Q4 2023, profit from associates decreased 32% YoY, which dragged PBT to decrease 36% YoY. On a QoQ basis, PBT increased 2% QoQ, driven by 25% QoQ growth in associate profits which was partially offset by a 5% QoQ decrease in financial income, primarily interest income. In 2023, VEA’s net cash accounted for 48% of its total assets.
- In Q4 2023, Honda Vietnam’s profit (78% of VEA’s 2023 NPAT-MI) jumped 26% QoQ, in addition to a 39% QoQ surge in Ford Vietnam’s profits. Meanwhile, Toyota Vietnam’s profit dropped 6% QoQ. Regarding passenger car sales volume, Q4 2023 saw a QoQ surge in sales volume across associates due to extensive discounts and promotions in the arrival of the peak seasons, and the Government’s registration fee cut policy ending on December 31, 2023. Honda posted the strongest performance among manufacturers as its sales volume soared 59% YoY and 56% QoQ from Q4 2022’s low base. On the other hand, Toyota and Ford’s car sales volume declined 28% QoQ and 11% QoQ, respectively, which we mainly attribute to their higher selling prices of key flagship models vs other brands which have local assembled models such as Honda. Honda motorbike (2W) sales volume also increased 14% QoQ in Q4 2023 backed by stronger consumer sentiment regarding the upcoming Lunar New Year holidays.
- We note that VEA has booked a VND645bn provision in Q4 2023 at the parent level for the non-performing loans to subsidiaries and associates that were deemed a qualified audit opinion previously.
VEA’s Q4 and 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | QoQ | 2022 | 2023 | YoY | 2023/ Vietcap's 2023F |
Revenue | 1,267 | 974 | -23% | 10% | 4,747 | 3,843 | -19% | 95% |
EBIT | -95 | -274 | N.M. | N.M. | -16 | -236 | N.M. | N.M. |
Associate profits | 2,370 | 1,607 | -32% | 25% | 6,985 | 5,639 | -19% | 103% |
Honda | 2,050 | 1,465 | -29% | 26% | 5,975 | 4,915 | -18% | 103% |
Toyota | 160 | 51 | -68% | -6% | 735 | 309 | -58% | 88% |
Ford + Others | 160 | 92 | -43% | 39% | 276 | 414 | 50% | 125% |
Other non-operating profits | 294 | 304 | 3% | -5% | 875 | 1,137 | 30% | 87% |
PBT | 2,569 | 1,637 | -36% | 2% | 7,844 | 6,540 | -17% | 97% |
NPAT-MI | 2,506 | 1,560 | -38% | -2% | 7,595 | 6,234 | -18% | 97% |
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Sell-out performance |
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Honda 2W (‘000 units) | 715 | 579 | -19% | 14% | 2,408 | 2,089 | -13% | 99% |
Honda 4W | 5,502 | 8,732 | 59% | 56% | 30,645 | 23,802 | -22% | 105% |
Toyota | 27,221 | 19,475 | -28% | 58% | 92,625 | 59,207 | -36% | 101% |
Ford | 13,329 | 11,838 | -11% | 31% | 28,847 | 38,322 | 33% | 107% |
Source: VEA, Vietnam Automobile Manufacturers' Association (VAMA), Vietnam Association of Motorcycle Manufacturers (VAMM), Vietcap’s estimates.
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