VJC [OUTPERFORM +11.1 %] - Strengthened market position to drive profitability recovery

- We raise our target price (TP) for VJC by 5.7% to VND114,000/share and upgrade our rating to OUTPERFORM from MARKET PERFORM.

- Our higher TP is mainly driven by a 5% increase in our 2023-2027F aggregate EBITDAR forecast that is primarily underpinned by (1) our higher assumptions for VJC’s domestic and international passenger volume and yield during the period, and (2) our higher assumption for ancillary revenue per passenger.

- We forecast 2024F revenue of VND92.5tn (USD3.8bn; +48.0% YoY) and NPAT-MI of VND2.4tn (USD98mn) vs a net profit of VND343bn (USD14mn) in 2023. We project that VJC’s transportation segment will make net profits of VND1.5tn (USD61mn) and VND2.6tn (USD106mn) in 2024F and 2025F, respectively.