Viet Capital Securities (VCSC) forecasts VJC’s revenue and net profit in 2018 will increase by 32.9 per cent to about $2.5 billion and by 13.8 per cent to about $226 million respectively, in which the core profit is expected to grow by 53.9 per cent thanks to the opening of efficient international flight routes. Regarding stock prices, VJC has recorded quite a high growth rate so the growth rate may not be as fast as before.
According to VCSC, this prediction was based on four possible challenges for VJC, specifically the growth of international activities being lower than expected, the demand being not enough to make full use of additional aircraft, oil prices continuing to rise sharply, and the increase in interest rates causing the terms of aircraft sale and lease not as beneficial as before.
On the other hand, the company plans to make 14 sale-and-leasebacks (SALBs) this year, fewer than 17 deals attained 2017. As a result, VCSC forecasts the profit from the sale of each aircraft will fall to $6 million as interest rates and mobilisation costs for buyers and leasors increase.
However, this company also said that 90 per cent of the increase in fuel costs could be passed on passengers if Brent oil price remains below $85 per barrel. With the opening of 20 additional international routes and four domestic ones, VJC may increase its revenue from airfares in 2018.
VJC, the company “shaking up” the market of the female billionaire Nguyen Thi Phuong Thao, was officially listed on the morning of February 28th last year with the starting price reaching $3.96 per stock.
At the end of the first session, 12,030 VJC stocks were traded at the price of $4.75 per stock, higher than the reference price by 20 per cent. As a result, on the very first day, Vietjet Air officially joined the billion-dollar business group and the top ten companies regarding market cap of the Ho Chi Minh Stock Exchange (HOSE).
It was worth $1.43 billion, standing among such giants as Vingroup, Vinamilk, Vietcombank, Vietinbank, and Sabeco.
At that time, the appeal of VJC came from not only 27 international flight routes with a 41-per-cent share of the domestic market, but also the modern mindset of the management team.
From investing in new generation aircraft carriers (the very first to own Airbus's Sharklet A320 family) to the willingness to invest in airport building if permitted by the Government, VJC also quickly deals with the high airport expenses by providing in-flight food at reasonable prices.
Besides, thanks to technology application in ticket booking and flight tracking, Vietjet Air has become the choice of most customers from the middle class to the commoners. Regarding the financial aspect, VJC is also appreciated by experts and analysts as well as domestic and foreign investors.
Since last year, VJC's market cap has officially reached VND100 trillion, equal to $4.5 billion. In 276 trading sessions, with the average liquidity of 691,000 units per session, VJC's stock price has been more than 2.4 times higher than the reference price on the stock market. It is now recorded at VND218,000 per stock (at the end of April 5th ) and has become one of the most valued stocks with exciting trading value.
With those results, VietJet has cleared up the doubt about its terrific growth speed in 2017, as well as the challenges from the fluctuations in oil prices. VJC will hold the annual shareholders meeting on the morning of April 26th in Ho Chi Minh City.