We attended VJC’s online AGM on April 26, 2024. 

Summary of key AGM resolutions:

• VJC guides for 2024 revenue of VND65.6tn (USD2.6bn; +12.4% YoY) and NPAT of VND1.1tn (USD44mn; +78% YoY). These targets are equivalent to 71% and 42% of our respective forecasts. 
• The AGM approved the 2024 dividend plan of 25% on par value (either cash or stock dividends).
• VJC’s shareholders approved a plan for a private placement of dividend preferred stock for a maximum of 20% of its total outstanding shares at the time of issuance for (1) raising additional working capital and (2) repaying debts.
• VJC’s AGM approved an ESOP for the 2024-2026 period with a total 10 million ESOP shares — equivalent to 1.8% of total outstanding shares — with a price of VND10,000/share and a maximum three-year lock-up period.
• VJC’s shareholders continued to authorize the BOD to make decisions on (1) transactions with total value in excess of 50% of VJC’s total assets, (2) investment/divestment in/from assets with total value in excess of 30% of the company’s total assets, and (3) transactions with a related party/parties with total value in excess of 10% of VJC’s total assets. We believe these authorizations could allow VJC to quickly capture opportunities to raise cash from divestments and aircraft sales transactions in order to improve the company’s liquidity.

Other information:

• VJC plans to expand its fleet from 87 in 2023 to 95 in 2024. In the next five years, VJC has plans to invest in 200 narrow body aircraft and 20 wide body aircraft.
• VJC expects strong recovery of the international segment to continue in 2024. The airline also has plans to expand its international market presence. 
  1. Australian market: Introduce two additional routes, Hanoi - Sydney and Hanoi - Melbourne, both set to commence in June 2024.
  2. Asia market: (1) Reopen and expand routes in major Northeast Asian markets including China, Japan, and South Korea, given the positive revenue and customer growth from these regions in late 2023; (2) increasing flight frequency to destinations in Taiwan, India, and the Philippines.
  3. Russia and Kazakhstan: Increase frequency with the use of the Airbus A330 plane.
  4. European market: Launch routes by the end of 2024 or early 2025; targeted markets are France, Germany, and the Czech Republic. The European route expansion is planned with the acquisition of more Airbus A330 aircraft by 2026.

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