HVN – Turnaround to profitability with strong revenue growth, margin expansion - Earnings Flash
  • 2025-02-03T00:00:00
  • Company Research
  • HVN reported 2024 revenue of VND106.8tn (USD4.3bn; 16% YoY; 92% of our full-year forecast) and NPAT-MI of VND6.9tn (USD274.7mn), marking a significant turnaround from a VND5.9tn net loss in 2023. This NPAT-MI result beats our 2024F forecast of a VND1.3tn net loss. We foresee upside potential to our forecast, pending a fuller review.
  • In Q4 2024, net revenue was VND26.8tn (USD1.1bn; flat QoQ; 12% YoY) and NPAT-MI was VND921bn (USD30.6mn; 20% QoQ), marking a turnaround from a VND2.1tn (-USD82.4mn) net loss in Q4 2023.
  • In Q4 2024, other net income surged to VND597bn (USD23.4mn; +1883% QoQ; +110% YoY), driven by a one-off recorded gain as the National Assembly allowed Pacific Airlines JSC (VNA’s subsidiary) to reverse VND598bn in late payment fines and fees on outstanding tax debts as of December 31, 2024. Excluding this one-time gain, recurring PBT stood at VND550bn, representing a robust 109% YoY increase.
  • Gains from associates reached VND71bn (USD2.8mn; -34% YoY; 94% of our full-year forecast). This result fell short of our expectations, primarily due to a VND96bn loss from associates in Q4 2024.
  • In 2024, GPM improved significantly to 13.1% (vs 4.3% in 2023), driven by revenue growth outpacing cost increases. According to the standalone financial statements of VNA, revenue rose by 21% YoY, while costs increased at a slower pace of 9%. In particular, the changes in fuel, labor, depreciation, and outsourcing costs changed by +7%, +15%, -16%, and +13% YoY, respectively. These expenses represented 33.1%, 6.5%, 6.1%, and 54.3% of VNA's respective total costs in 2024.
  • In 2024, HVN’s OPM improved to 6.4% in 2024 (vs -2.8% in 2023). The 9.2 ppts improvement in OPM was mainly driven by an expansion of 8.8 ppts in GPM while SG&A/sales remained stable.
  • The company’s cash flow from operations improved, reaching VND9.7tn (USD385.6mn) in 2024, up from VND1tn (USD40.1mn) in 2023.

HVN’s 2024 results

VND bn

Q4 2023

Q3 2024

Q4 2024

QoQ

YoY

2023

2024

YoY

2024A/2024F

2024F

Revenue

24,059

26,830

26,829

0%

12%

92,087

106,754

16%

92%

115,638

VNA

17,951

20,901

21,306

2%

19%

69,058

83,677

21%

93%

89,763

-Transportation revenue

17,665

20,594

20,909

2%

19%

67,869

82,418

21%

94%

87,319

-Total auxiliary

373

307

397

29%

6%

1,189

1,259

6%

51%

2,445

Subsidiaries

6,108

5,929

5,523

-7%

-10%

23,029

23,076

0%

89%

25,875

Net Revenue

23,831

26,600

26,625

0%

12%

91,459

105,787

16%

92%

114,830

Gross Profit

-189

2,744

4,377

59%

N.M

3,939

13,826

251%

172%

8,060

SG&A 

-1,565

-1,577

-2,248

43%

44%

-6,473

-7,051

9%

99%

-7,131

Operating Profit

-1,754

1,167

2,130

82%

N.M

-2,525

6,775

N.M

729%

929

Financial income

287

563

368

-35%

28%

926

1,260

36%

349%

361

Financial expenses

-748

-812

-1,852

128%

148%

-4,405

-5,588

27%

195%

-2,859

Gain/loss from associates

11

26

-96

-462%

-979%

88

71

-20%

94%

75

Net other income

285

30

597

1883%

110%

615

5,206

746%

4781%

109

PBT

-1,920

975

1,147

18%

N.M

-5,363

7,723

N.M

N.M

-1,385

NPAT - MI

-2,065

768

921

20%

N.M

-5,930

6,883

N.M

N.M

-1,385

GPM

-0.8%

10.3%

16.4%

 

 

4.2%

13.1%

 

 

7.0%

OPM

-7.4%

4.4%

8.0%

 

 

-2.8%

6.4%

 

 

0.8%

NPM

-8.7%

2.9%

3.5%

 

 

-6.5%

6.5%

 

 

-1.2%

Source: HVN, Vietcap forecasts

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