AST - 9M NPAT-MI turns positive after two profitable quarters

- AST released results for Q3 2022 with revenue of VND185bn (USD7.6mn; +967.6% YoY) and NPAT-MI of VND13bn (USD500,000) vs Q3 2021’s loss of VND40bn (USD1.6mn). As such, the company’s accumulated 6M 2022 loss of VND8bn (USD327,000) has been fully recovered.

- AST’s 9M 2022 revenue was VND387bn (USD15.8mn; +207.1% YoY), completing 70% of our full-year forecast of VND555bn (USD23mn). Meanwhile, AST recorded 9M 2022 profit of VND5bn (USD216,000) — an optimistic result when compared to the huge loss of VND102bn (USD4.2mn) in 9M 2021. This profit is equivalent to 53% of our 2022 positive NPAT-MI forecast of VN10bn (USD408,000).

- We believe the number of international passengers will not experience a strong recovery in 2022 due to a global slowdown and China’s determination to continue with its zero-COVID measures. As a result, we anticipate potential downside risk to our forecasts, pending a fuller review.