VJC - Transportation business continues recovering - Earnings Flash
  • 2024-07-31T00:00:00
  • Company Research
  • H1 2024 results: VJC reported H1 2024 revenue of VND34tn (USD1.33bn; +15.3% YoY). The company's H1 2024 NPAT-MI was VND1.1tn (USD43mn), increasing by 8.2x from VND135bn in H1 2023. The revenue for H1 2024 accounts for 36.8% of our full-year 2024 projection. Additionally, H1 2024 NPAT-MI achieved 45.9% of our full-year 2024 forecast. We see no material risk to our current earnings projection, pending a more comprehensive review.

    In H1 2024, VJC stated that it operated 70,154 flights (+6.3% YoY) and transported 13.1 million passengers (+8.3% YoY). Since the beginning of the year, VJC has opened nine new routes, bringing the total number of routes to 149 (including 38 domestic routes and 111 international routes).

    VJC’s gross profit for H1 2024 was VND3.5tn (USD137mn), a 98.1% surge from the low base in H1 2023. Gross margin increased from 6.0% in H1 2023 to 10.4% in H1 2024, exceeding our expectation of 8.5% for 2024F. VJC’s operating profit jumped to VND1.86tn (USD73mn) in H1 2024.

    The airline’s cash flow from operations (CFO) significantly improved with H1 2024 CFO of VND1.7tn (USD67mn) compared to VND426bn in H1 2023.
  • Q2 2024 results: In Q2 2024, VJC’s revenue was VND16.2tn (USD635mn; -2.3% YoY) while its NPAT-MI improved to VND578bn (USD23mn), compared to a loss of VND36bn in Q2 2023. The decline in revenue was mainly driven by an 80.2% drop in aircraft financing revenue while transportation revenue showed a strong recovery with a jump of 22.2% YoY to VND15.4tn (USD604mn) in Q2 2024.

VJC’s Q2 2024 & H1 2024 results

 

 Q2 2023 

 Q2 2024 

YoY

 H1 2023 

 H1 2024 

YoY

H1 as % of 2024F

 Revenue 

16,605 

16,224 

-2.3%

 29,503 

34,016 

15.3%

36.8%

  • Transportation

 12,635 

15,436 

22.2%

 25,196 

31,740 

26.0%

54.1%

  • Aircraft transactions

 3,970 

 787 

-80.2%

4,308 

2,276 

-47.2%

6.7%

Gross Profit 

717 

1,778 

148.1%

 1,779 

3,523 

98.1%

44.9%

SG&A expenses

-652

-818

25.4%

-1,229

-1,665

35.5%

42.3%

 Operating Profit 

64 

 960 

 15x 

 550 

1,858 

 3.4x 

47.4%

  •  Financial income 

466 

 569 

22.0%

 703 

1,153 

64.0%

83.6%

  •  Financial expense 

-559

-997

78.4%

-1,038

-1,937

86.7%

75.7%

  •  Net other income 

32 

 104 

224.8%

 31 

 238 

 7.6x 

N.M.

 PBT 

 3 

 635 

196x 

 246 

1,311 

 5.3x 

47.9%

 NPAT-MI 

-36

 578 

N.M

 135 

1,114 

 8.2x 

45.9%

 

 

 

 

 

 

 

 

GPM

4.3%

11.0%

 

6.0%

10.4%

 

 

OPM

0.4%

5.9%

 

1.9%

5.5%

 

 

NPM

-0.2%

3.6%

 

0.5%

3.3%

 

 

Source: VJC, Vietcap

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