- 2024-07-29T00:00:00
- Company Research
- ACV released its H1 2024 results, posting a 16% YoY increase in revenue and PBT adjusted for FX gain/losses, fulfilling 49% and 58% of our respective full-year forecasts, respectively. We foresee upside potential to our forecasts, pending a fuller review.
- In H1 2024, ACV’s international passengers recovered 39% YoY to 20 million, in line with our full-year forecast of 43 million.
- However, the number of domestic passengers dropped 18% YoY to 35 million due to aircraft repairs by domestic airlines and weaker-than-expected consumer sentiment. We anticipate these issues to be alleviated going forward, but still foresee potential downside risk to our current 2024 forecast of 78 million domestic passengers.
- Foreign arrivals fully recovered in H1 2024, reaching 104% of pre-Covid levels, with Chinese arrivals achieving 76%.
- In Q1 2024, ACV recognized a decrease of VND5bn in bad debt provisions, resulting in a total provision balance of VND3.9tn (flat QoQ), beating our expectation of VND1.5tn in provision expenses for 2024F. This indicates a positive signal of airlines’ repayment, supported by a positive recovery outlook.
- ACV made revaluation FX gains of USD17mn in H1 2024 due to a 5% depreciation in the JPY/VND exchange rate, benefiting ACV’s JPY debt load.
ACV’s H1 2024 results
VND bn | Q2 2023 | Q1 2024 | Q2 2024 | Q2 2024 YoY | H1 2023 | H1 2024 | H1 2024 YoY | H1 2024/2024F | 2024F |
Net revenue | 4,929 | 5,644 | 5,535 | 12% | 9,657 | 11,178 | 16% | 49% | 22,984 |
Aeronautical revenue | 3,415 | 3,963 | 3,862 | 13% | 6,715 | 7,824 | 17% | 49% | 16,090 |
Take-off and landing fees | 637 | 692 | 682 | 7% | 1,250 | 1,374 | 10% | 56% | 2,471 |
Non-aeronautical revenue | 894 | 1,006 | 1,008 | 13% | 1,725 | 2,013 | 17% | 46% | 4,361 |
ACV’s net revenue * | 4,945 | 4,968 | 4,869 | 13% | 8,440 | 9,838 | 17% | 48% | 20,514 |
Gross profit | 2,959 | 3,600 | 3,460 | 17% | 5,897 | 7,059 | 20% | 50% | 14,062 |
SG&A | -693 | -498 | -332 | -52% | -1,278 | -830 | -35% | 28% | -2,988 |
EBIT | 2,266 | 3,102 | 3,128 | 38% | 4,619 | 6,230 | 35% | 56% | 11,074 |
Financial income | 442 | 479 | 827 | 87% | 858 | 1,306 | 52% | 79% | 1,658 |
Financial expenses | 446 | -19 | -27 | -106% | -346 | -45 | -87% | 8% | -584 |
Net income from associates | 80 | 61 | 81 | 1% | 132 | 142 | 7% | 44% | 323 |
PBT | 3,236 | 3,629 | 3,999 | 24% | 5,266 | 7,627 | 45% | 61% | 12,510 |
PBT adj. for FX | 3,699 | 3,546 | 3,987 | 8% | 6,500 | 7,532 | 16% | 58% | 13,029 |
NPAT | 2,610 | 2,921 | 3,228 | 24% | 4,246 | 6,149 | 45% | 60% | 10,266 |
NPAT-MI | 2,608 | 2,917 | 3,225 | 24% | 4,241 | 6,142 | 45% | 60% | 10,236 |
ACV’s NPAT-MI | N.A | 2,594 | 2,898 | N.A | N.A | 5,492 | N.A | 61% | 9,040 |
State’s NPAT-MI ** | N.A | 324 | 327 | N.A | N.A | 651 | N.A | 54% | 1,196 |
D&A | 608 | 586 | 573 | -6% | 1,165 | 1,159 | -1% | 45% | 2,565 |
EBITDA | 2,874 | 3,688 | 3,700 | 29% | 5,784 | 7,388 | 28% | 54% | 13,640 |
GPM | 60.0% | 63.8% | 62.5% |
| 61.1% | 63.2% |
|
| 61.2% |
SG&A/rev | -14.1% | -8.8% | -6.0% |
| -13.2% | -7.4% |
|
| -13.0% |
EBITDA margin | 58.3% | 65.4% | 66.9% |
| 59.9% | 66.1% |
|
| 59.3% |
NPM * | N.A | 52.2% | 59.5% |
| 15.4% | 55.8% |
|
| 44.1% |
Source: ACV, Vietcap forecast. Note: (*) Excluding contribution from State-invested aviation assets; (**) NPAT-MI from assets owned by the State (State-invested aviation assets) — the State authorizes ACV to manage these assets (including runways).
ACV’s accounts receivable as of H1 2024 (VND bn)
VND bn | Total | Gross doubtful receivable | Net doubtful receivable |
All clients | 11,381 | 8,253 | 4,363 |
Vietjet Air | 3,119 | 1,702 | 1,702 |
Bamboo Airways | 2,265 | 2,265 | 0 |
Vietnam Airlines | 3,803 | 3,045 | 2,659 |
Pacific Airlines | 880 | 880 | 0 |
Source: ACV
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