- 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% |
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Sell-out performances |
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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
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