- 2024-10-31T00:00:00
- Company Research
* 9M 2024 Results:
HVN reported 9M 2024 revenue of VND80tn (USD3.2bn; +17.4% YoY). The company's 9M 2024 NPAT-MI reached VND6tn (USD228mn), a significant improvement compared to a net loss of VND3.7tn in 9M 2023. Revenue for 9M 2024 accounts for 69% of our full-year 2024 projection while NPAT-MI for 9M 2024 exceeds our expectations, as we had previously forecasted a full-year 2024 loss of VND1.3tn.
HVN’s gross margin showed a significant improvement, rising to 11.9% compared to 6.1% in the same period last year. As HVN does not disclose its cost breakdown at the consolidated level, we analyzed the cost breakdown at the standalone level (VNA) to understand the improvement in HVN's GPM. We observed that while revenue grew by 22.1% YoY, the growth of cost components was slower. In particular, the changes in fuel costs, labor costs, depreciation costs, and outsourcing costs were 12.9%, 14%, -18%, and 16.5% YoY, respectively. Fuel costs, labor costs, depreciation costs, and outsourcing costs accounted for 33.5%, 6.5%, 6.1%, and 53.4% of Vietnam Airlines' (VNA) total costs in 9M 2024, respectively.
HVN’s operating margin improved from -1.1% in 9M 2023 to 5.9% in 9M 2024. The 7% improvement in operating margin was primarily driven by a 5.8 ppt expansion in gross margin, while SG&A expenses/sales was 6% in 9M 2024 vs 7.2% in 9M 2023, further boosting the OPM expansion.
The airline’s cash flow from operations (CFO) saw a significant improvement, reaching VND6.6tn (USD253mn) in 9M 2024, compared to VND367bn (USD14mn) in 9M 2023.
* Q3 2024 Results:
In Q3 2024, HVN reported net revenue of VND26.6tn (USD1.1bn; +13% YoY), while NPAT-MI improved to VND768bn (USD30.7mn), compared to a net loss of VND2.3tn (USD91mn) in Q3 2023.
Financial income for HVN in Q3 2024 increased significantly by 219%, from VND177bn (USD7mn) in Q3 2023 to VND563bn (USD22.5mn), primarily driven by a substantial 238% YoY increase in foreign exchange gains to VND524bn.
HVN’s Q3 2024 & 9M 2024 results
Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | 9M 2024 as % of 2024F | |
Revenue | 23,753 | 26,830 | 13% | 68,089 | 79,924 | 17% | 69% |
VNA | 17,798 | 20,901 | 17% | 51,088 | 62,353 | 22% | 69% |
-Transportation revenue | 17,541 | 20,594 | 17% | 50,291 | 61,497 | 22% | 70% |
-Total auxiliary | 257 | 307 | 20% | 797 | 855 | 7% | 35% |
Subsidiaries | 5,955 | 5,929 | 0% | 17,002 | 17,572 | 3% | 68% |
Net Revenue | 23,569 | 26,600 | 13% | 67,628 | 79,162 | 17% | 69% |
Gross Profit | 1,240 | 2,744 | 121% | 4,128 | 9,448 | 129% | 117% |
SG&A | -1,913 | -1,577 | -18% | -4,899 | -4,803 | -2% | 67% |
Operating Profit | -674 | 1,167 | N.M | -770 | 4,645 | N.M | 500% |
Financial income | 177 | 563 | 219% | 635 | 892 | 40% | 247% |
Financial expense | -1,895 | -812 | -57% | -3,580 | -3,736 | 4% | 123% |
Gain/loss from associates | 32 | 26 | -18% | 97 | 166 | 72% | 222% |
Net other income | 228 | 30 | -87% | 289 | 4,609 | 1494% | 1440% |
PBT | -2,132 | 975 | N.M | -3,329 | 6,576 | N.M | N.M |
NPAT - MI | -2,277 | 768 | N.M | -3,743 | 5,962 | N.M | N.M |
GPM | 5.3% | 10.3% | 6.1% | 11.9% | |||
OPM | -2.9% | 4.4% | -1.1% | 5.9% | |||
NPM | -9.7% | 2.9% | -5.5% | 7.5% |
Source: HVN, Vietcap
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