VJC – Q3 earnings surge due to recovery of air transportation revenue, profitability expansion – Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research

9M 2024 results: 

VJC reported 9M 2024 revenue of VND52.2tn (USD2.2bn; +19.3% YoY). The company’s 9M 2024 NPAT-MI was VND1.4tn (USD58mn), increasing by 493% from VND236.5bn in 9M 2023. As VJC’s revenue and NPAT-MI in 9M 2024 account for 56% and 58% of our respective full-year 2024 projections, we see downside risk to our forecast, pending a fuller review.

9M 2024 blended GPM increased by 4.5 ppts YoY, driven by an 18.1 ppts YoY expansion in SALB (sales and lease back) gross profit margin and a 1.3 ppts YoY rise in transportation GPM. VJC’s operating profit margin increased by 3.2 ppts YoY in 9M 2024.

The airline’s cash flow from operations (CFO) was negative VND1.6tn (USD61.6mn) in 9M 2024, which showed improvement when compared to the negative CFO of VND2.2tn in 9M 2023.

In 9M 2024, VJC transported over 19.6 million passengers across 104,000 flights, reflecting a 6% YoY increase in passenger volume and a 2% YoY increase in the number of flights. 

* Q3 2024 results: 

- In Q3 2024, VJC’s revenue was VND18.2tn (USD756.8mn; +28% YoY) and NPAT-MI improved to VND571.6bn (USD23.8mn), compared to net profit of VND101.4bn in Q3 2023.

- Q3 2024 blended GPM increased by 1.8 ppts YoY, mainly driven by SALB’s GPM of 21.2% in Q3 2024 vs no SALB transactions in Q3 2023.

VJC’s Q3 2024 & 9M 2024 results

VND bn

Q3 2023

Q3 2024

YoY

9M 2023

9M 2024

YoY

9M 2024/ 2024F

Revenue

14,235 

18,164 

28%

             43,738 

             52,194 

19%

56%

Transportation segment

             14,235 

             15,084 

6%

             38,111 

             46,824 

23%

80%

SALB & ROFR

                    -   

               3,081 

N.M

               5,894 

               5,356 

-9%

16%

Gross Profit

               1,241 

               2,202 

78%

               3,020 

               5,956 

97%

76%

Operating profit

                 440 

               1,524 

247%

                 990 

               3,163 

220%

81%

Financial income

                 310 

                 242 

-22%

               1,013 

               1,390 

37%

101%

Financial expenses

                (548)

              (1,085)

98%

              (1,586)

              (3,109)

96%

121%

Net other income

                    (3)

                   78 

N.M

                   29 

                 317 

1007%

N.M

PBT

                 199 

                 760 

283%

                 445 

               1,761 

296%

64%

NPAT-MI

                 101 

                 572 

464%

                 236 

               1,402 

493%

58%









GPM %

8.7%

12.1%

 

6.9%

11.4%

 

 

OPM %

3.1%

8.4%


2.3%

6.1%



NPAT-MI margin %

0.7%

3.1%


0.5%

2.7%



Source: VJC, Vietcap

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