VEA - Honda’s earnings lead robust 19% associate profit growth - Earnings Flash
  • 2025-01-24T00:00:00
  • Company Research
  • VEA released its 2024 results, including revenue of VND4.1tn (USD164mn; +7% YoY) and NPAT-MI of VND7.4tn (USD293mn; +18% YoY), completing 110% and 116% of our respective full-year forecasts. Revenue and earnings exceeded our expectations, and we see potential upside to our current projections, pending a more comprehensive review. 
  • In 2024, profit from associates grew 19% YoY, offsetting a 25% YoY decline in non-operating income (mainly interest income), resulting in 17% YoY PBT growth. Honda Vietnam, contributing 83% of VEA’s NPAT-MI, recorded strong 24% YoY profit growth. Conversely, Toyota and Ford’s profits declined by 22% YoY and 7% YoY, respectively, but outperformed our expectations due to a better-than-anticipated recovery in sales volume and improved net profit margins in Q4 2024. 
  • Retail sales of passenger cars rose 9% YoY, fulfilling 99% of our 2024 forecast, consistent with our expectations for a rebound in car consumption, supported by the Government’s 50% registration fee cut policy in September–November 2024. Among major automakers, Honda achieved a 19% YoY sales volume increase, making it the second-best performer after Mitsubishi. Honda motorbike sales grew 3% YoY, achieving 100% of our 2024F sales projection for Honda 2W.
  • We currently have a target price for VEA of VND42,200/share.

VEA’s Q4 2024 and 2024 results

 VND bn

Q4 2024

YoY

QoQ

2023

2024

YoY

2024/ Vietcap 2024F

Revenue

1,147

22%

9%

3,806

4,119

8%

110%

EBIT

-33

N.M.

N.M.

-249

39

N.M.

N.M.

Associate profits  

2,364

47%

58%

5,640

6,730

19%

116%

Honda

2,074

42%

52%

4,915

6,101

24%

115%

Toyota

89

77%

0%

309

242

-22%

168%

Ford + Others

200

118%

298%

414

387

-7%

112%

Other non-operating profits 

210 

-28%

6%

          1,126 

            846 

-25%

100%

PBT

2,541

57%

48%

6,517

7,615

17%

116%

NPAT-MI

2,486

63%

50%

6,201

7,357

19%

116%

 

 

 

 

 

 

 

 

Sell-out performances

 

 

 

 

 

 

 

Honda 2W (‘000 units)

634 

25%

33%

2,089

         2,147 

3%

100%

Honda 4W 

10,613 

90%

143%

23,802

      28,267 

19%

107%

Toyota 

26,611 

116%

73%

59,207

      68,128 

15%

123%

Ford

14,137 

56%

47%

38,322

       42,175 

10%

103%

Source: VEA, Vietnam Automobile Manufacturers' Association (VAMA), Vietnam Association of Motorcycle Manufacturers (VAMM), Vietcap estimates

Powered by Froala Editor