- VEA announced its 9M 2023 results, including revenue of VND2.9tn (USD117mn; -18% YoY) and NPAT-MI of VND4.7tn (USD191mn; -8% YoY), each fulfilling 65% of our respective full-year forecasts. As the results trailed our expectations, we see a potential downside risk to our projections, pending a more comprehensive review.
- In Q3 2023, the main reason for VEA's 11% QoQ decline in earnings is the 18% QoQ decrease in profits from associates. However, this decline was partially mitigated by a 16% QoQ increase in financial income, primarily from interest income. In 9M 2023, VEA’s net cash accounted for 58% of its total assets.
- In Q3 2023, Honda Vietnam’s profit (86% of VEA’s 9M 2023 NPAT-MI) slid down 9% QoQ while Toyota and Ford Vietnam’s profits dropped 46% and 67% QoQ, respectively. We attribute the drop in profit across associates to (1) Q3 being the low season for car sales in Vietnam and (2) extensive promotional discounts from car producers and dealers.
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