- 2024-10-30T00:00:00
- Company Research
- VEA released its 9M 2024 results, including revenue of VND3.0tn (USD119mn; +4% YoY) and NPAT-MI of VND4.9tn (USD195mn; +4% YoY), achieving 80% and 77% of our respective full-year forecasts. Revenue and earnings exceed our expectations, and we see slight upside potential to our current projections, pending a more comprehensive review.
- In 9M 2024, VEA's profit from associates increased by 8% YoY, offset by the 24% YoY decline in non-operating income (primarily interest income), leading to 3% YoY growth in PBT. Honda Vietnam’s profit (92% of VEA’s 9M 2024 NPAT-MI) delivered solid 17% YoY growth and is broadly in line with our projection, which we attribute to higher selling prices for upgraded models. However, despite a 41% YoY profit drop for Toyota in 9M 2024, its results exceed our expectations, primarily due to a stronger-than-anticipated sales volume recovery and improved net profit margins in Q3 2024. Additionally, Ford’s profit dropped 42% YoY in 9M 2024 and trailed our forecasts.
- Regarding sell-out performance, in 9M 2024, passenger car retail sales grew 6% YoY, an improvement compared to the 6% YoY drop in 6M 2024. This result completes 64% of our full-year forecast and is broadly in line with our expectations as we anticipate stronger car volume growth from a low base in H2 2024, supported by the Government’s 50% registration fee cut policy. Among the key auto producers, Honda and Mitsubishi outperformed in 9M 2024 due to its key models, including the Mitsubishi Xpander (CBU, MPV) and Honda City (CKD, Sedan B). Conversely, Honda Vietnam’s motorbike sales volume completes 71% of our 2024F forecast, broadly in line with our projections.
VEA’s Q3 2024 and 9M 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY | QoQ | 9M 2023 | 9M 2024 | YoY | 9M 2024/ Vietcap 2024F |
Revenue | 884 | 1,049 | 19% | -45% | 2,869 | 2,972 | 4% | 80% |
EBIT | 0 | 13 | N.M. | -70% | 38 | 72 | 89% | N.M. |
Associate profits | 1,286 | 1,500 | 17% | -8% | 4,031 | 4,366 | 8% | 75% |
Honda | 1,165 | 1,361 | 17% | -9% | 3,450 | 4,027 | 17% | 76% |
Toyota | 54 | 89 | 65% | 46% | 259 | 153 | -41% | 106% |
Ford + Others | 66 | 50 | -24% | -29% | 322 | 186 | -42% | 54% |
Other non-operating profits | 321 | 198 | -38% | -55% | 834 | 637 | -24% | 75% |
PBT | 1,607 | 1,712 | 7% | -9% | 4,903 | 5,074 | 3% | 77% |
NPAT-MI | 1,526 | 1,652 | 8% | -8% | 4,674 | 4,871 | 4% | 77% |
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Sell-out performances |
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Honda 2W (‘000 units) | 506 | 555 | 10% | 17% | 1,510 | 1,513 | 0% | 71% |
Honda 4W | 5,582 | 7,173 | 29% | 64% | 15,070 | 17,654 | 17% | 67% |
Toyota | 12,312 | 18,492 | 50% | 20% | 39,732 | 41,517 | 4% | 75% |
Ford | 9,061 | 10,387 | 15% | 8% | 26,484 | 28,038 | 6% | 69% |
Source: VEA, Vietnam Automobile Manufacturers' Association (VAMA), Vietnam Association of Motorcycle Manufacturers (VAMM), Vietcap’s estimates
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