ACV – Q3-2023 Result Update: Provisioning for Receivables from Local Airlines Weighed on Core Profit Growth
- The international passenger volume (+112% YoY) continues to support core revenue growth (+29% YoY).
- ACV had to set aside nearly VND 700 billion in provisions for overdue receivables, in which VND 465 billion for Bamboo Airways’ and VND 155 billion for VJC’s, causing EBIT to only grow by 11% YoY.
- The depreciation of JPY/VND exchange rate during the period helped ACV record VND 480 billion in unrealized exchange rate gains, nearly unchanged vs same period last year, thus not providing much support to NPAT growth (+14% YoY).
- Accumulated 9M-2023 revenue and NPAT (excluding gains from the State’s airfield assets) reached VND 13,100 billion (+60% YoY) and VND 6,011 billion (+16% YoY), respectively, and were 78% and 75% completed. Our forecast revenue and PAT for the whole year.
- Due to the worse-than-expected trend of provisioning for bad receivables, 2023 and 2024 forecasts for are under review
Airports Corp Of Viet Nam. Airports Corporation of Viet Nam (ACV) is a Vietnam-based company primarily engaged in airport operation sector. Its leading business activities include the development, operation and maintenance of airport infrastructure and facilities such as runways, apron areas, taxiways, aircraft hangars, lighting systems, air traffic control towers and meteorological offices, among others. The Company provides ground services, including luggage handling, freight loading and unloading, passengers and baggage check-ins, as well as transportation from terminals to aircrafts; aircraft towing, marshalling, guarding, and securities scanning services. ACV is also engaged in the leasing of office, retail, advertising and parking spaces, along with the operation of its own souvenir and liquor shops, restaurants and convenience stores.
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