As of 9:20 AM on May 3, ACV shares surged by more than 4% to VND 92,000/share, the highest level in over two years. Notably, its market capitalization has exceeded VND 200,000 billion, placing it among the top 4 companies with the largest market capitalization on the stock exchange, behind only VCB, BID, and VGI.
Source: VietstockFinance
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The strong growth occurred after Vietnam Airports Corporation – Joint Stock Company (UPCoM: ACV) announced its financial report for the first quarter of 2024, with a record profit of over VND 2,900 billion, up by 79% compared to the same period last year.
The recovery of the aviation industry, high profit margins, and strong financial operations were the main factors contributing to the positive business performance of Vietnam’s airport magnate.
ACV’s Business Performance in Q1 2024
Unit: Billion VND
Source: VietstockFinance
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In the first quarter of 2024, revenue reached over VND 5,660 billion, an increase of 19% compared to the same period, with the main contribution coming from the aviation service provision sector (accounting for 82%). Gross profit margin also improved. If in the same period, VND 62 of gross profit was earned for every VND 100 of revenue, then in the first quarter of 2024, this figure was nearly VND 64. This is also a “dream” gross profit margin that is rarely seen on the stock market.
The financial sector also increased by more than VND 800 billion compared to the same period, due to an increase in financial revenue, while financial expenses decreased sharply from VND 793 billion to nearly VND 19 billion due to the absence of exchange rate loss recognition.
In 2024, ACV sets a revenue target of VND 20,325 billion and profit before tax of VND 9,378 billion. Thus, after the first 3 months of the year, the enterprise has implemented 28% of the revenue plan and 39% of the profit plan.
ACV is the investor of the Long Thanh International Airport project. Currently, the project is in phase 1 of construction, including a runway, a passenger terminal, and auxiliary items with a capacity of 25 million passengers/year and 1.2 million tons of cargo/year; will be completed and put into operation by 2025 at the latest.
The enterprise said that the project is still on schedule. As of March 31, the enterprise had invested nearly VND 9,000 billion in the project.
In addition, ACV is also facing bad debts and has made a provision of nearly VND 3,900 billion for airlines. Of which, the largest is the bad debt of nearly VND 2,200 billion at Bamboo Airways, followed by VND 900 billion at Pacific Airlines, VND 265 billion at Vietnam Airlines,…
