SCS - Positive H1 2024 earnings driven by cargo volume recovery - Earnings Flash
  • 2024-07-22T00:00:00
  • Company Research

SCS announced its H1 2024 results with net revenue of VND477bn (USD18.7mn; +43% YoY; 49% of our 2024F forecast) and NPAT-MI of VND337bn (USD13.2mn; +39% YoY; 51% of our 2024F forecast). In Q2, net revenue was VND264bn (USD10.4mn; +53% YoY; +24% QoQ) and NPAT-MI was VND147bn (USD5.8mn; +47% YoY; +29% QoQ).

Upbeat volume recovery driven by a rebound in trading activities and the new contribution from Qatar Airways, in line with our expectation: In H1 2024, total cargo volume was 128,700 tonnes (+43% YoY; 52% of 2024G’s guidance; 47% of our 2024F forecast), in which international cargo volume made up 95,600 tonnes (+50% YoY; 50% of 2024G’s guidance; 46% of our 2024F forecast) and domestic cargo made up 33,100 tonnes (+24% YoY; 57% of 2024G’s guidance; 48% of our current forecast). We believe these results are in line with our current projections as we expect trading activities to be stronger in H2 vs H1 2024. 

H1 2024 ASP recovered 1% YoY, slightly ahead of our forecast: H1 2024 ASP grew 1% YoY due to a 3% YoY increase in ASP in Q2 2024, vs -2% YoY in Q1 2024, leading to H1 2024 GPM expanding to 79.9% from 76.9% in H2 2023. These results track slightly ahead of our current expectations for a 3% YoY full-year ASP decline and 76.3% GPM for 2024F. Consequently, H1 2024 NPAT-MI tracked slightly ahead of our projection, fulfilling 51% of 2024F forecast.

As the NPAT-MI result in H1 2024 NPAT-MI is slightly ahead of our expectation, mostly due to a stronger-than-expected ASP recovery, we foresee slight upside potential to our current GPM and NPAT-MI forecasts.

SCS’s H1 2024 results


Q2 

2023

Q1 

2024

 Q2 

2024 

 QoQ 

 YoY 

H1 

2023

H1 

2024

YoY

2024F

H1 vs 2024F

Cargo volume (tons)

46,749

58,432

70,298

20%

50%

90,270

128,730

43%

274,200

47%

    International

32,875

42,632

53,005

24%

61%

63,558

95,637

50%

205,665

47%

    Domestic

13,874

15,800

17,293

9%

25%

26,712

33,093

24%

68,535

48%

ASP (VND/Kg)

3,400

3,367

3,515

4%

3%

3,412

3,448

1%

3,298

105%










 


Net revenue

172 

213 

264 

24%

53%

334

477

43%

969

49%

    Air cargo terminal

159 

197 

247 

26%

55%

308

444

44%

904

49%

    Others

13 

16 

17 

6%

27%

26

33

25%

64

52%

Gross Profit

134 

168 

213 

26%

58%

257

381

48%

739

52%

SG&A

11 

14 

13 

-4%

18%

24

27

15%

69

39%

Operating Profit

123 

154 

199 

29%

62%

233

354

52%

670

53%

Financial income

25 

15 

15 

0%

-42%

45

29

-35%

63

46%

PBT

147 

168 

213 

27%

45%

277

381

38%

731

52%

CIT

18 

21 

24 

14%

30%

34

45

30%

77

58%

NPAT-MI

129 

147 

190 

29%

47%

242

337

39%

654

51%









 


GPM

78.0%

79.1%

80.6%



76.9%

79.9%


76.3%


SG&A

6.6%

6.6%

5.1%



7.1%

5.7%


7.2%


OPM

71.4%

72.5%

75.5%



69.8%

74.2%


69.2%


NPM

74.9%

69.2%

71.8%



72.5%

70.6%


67.6%



















Source: SCS, Vietcap

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