VJC – Results meet our expectations on continued recovery of transportation business – Earnings Flash
  • 2024-05-02T00:00:00
  • Company Research
  • VJC reported Q1 2024 revenue of VND17.8tn (USD703mn; +38% YoY). The company's Q1 2024 NPAT-MI was VND536bn (USD21mn), increasing by 211% from VND172bn in Q1 2023. The revenue for Q1 2024 accounted for 19.2% of our full-year 2024 projection of VND92.5tn. Meanwhile, Q1 2024 NPAT-MI achieved 22.2% of our full-year 2024 forecast of VND2.5tn. We see no material risk to our current projection, pending a more comprehensive review.
  • In Q1 2024, VJC stated that it operated 34,500 flights (+10% YoY) and transported 6.3 million passengers (+16% YoY), of which 2.7 million were from international and charter flights (+61% YoY).
  • Since the beginning of the year, VJC has opened 15 new routes, bringing the total number of routes to 140, while also effectively exploiting existing routes.
  • VJC’s gross profit for Q1 2024 was VND1.8tn (USD71mn), a significant improvement of 64.3% from the VND1.1tn in Q1 2023. Gross margin increased from 8.2% in Q1 2023 to 9.8% in Q1 2024, exceeding our expectation of 8.5% for 2024. VJC’s operating profit jumped to VND899bn (USD36mn) in Q1 2024.
  • VJC’s financial income jumped 146% YoY to VND584bn (USD23mn) in Q1 2024. Meanwhile, VJC’s Q1 2024 financial expenses inched up to VND940bn (USD37.2mn; 96% YoY), accounting for 36.7% of our full-year projection.
  • VJC’s net margin also increased to 3.0% in Q1 2024 compared to 1.3% in Q1 2023, as other income reached VND140bn, significantly higher than the VND-0.5bn in Q1 2023.
  • The airline’s cash flow from operations (CFO) significantly improved with Q1 2024 CFO of VND818bn (USD32mn) compared to VND17bn in Q1 2023.

VJC’s Q1 2024 results

VNDbn

Q1 2023

Q1 2024

YoY

Q1 as % of 2024F

Revenue

12,897

17,791

37.9%

19.2%

- Transportation

10,655

15,743

47.8%

26.8%

- Aircraft transactions

2,242

2,048

-8.7%

6.1%

Gross Profit

1,062

1,745

64.3%

22.2%

Selling expenses

-420

-657

56.3%

25.4%

G&A expenses

-156

-189

21.1%

13.9%

Operating profit

486

899

85.1%

23.0%

Financial income

237

584

146.4%

42.3%

Financial expenses

-479

-941

96.3%

36.8%

Net other income

-1

134

N.M.

N.M.

PBT

243

676

178.2%

24.7%

NPAT-MI

172

536

211.6%

22.2%

 

 

 

 

 

Margins

 

 

 

 

GPM %

8.2%

9.8%

 

 

OPM %

3.8%

5.1%

 

 

NPAT margin %

1.3%

3.0%

 

 

 

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