Sasco sets profit target of 343 billion VND

Sasco plans to increase revenue by 5% to VND2,903 billion and pre-tax profit by 3% to VND343 billion despite forecasting that business activities may be affected by armed conflicts, inflation, and rising fuel prices.

The Board of Directors of Tan Son Nhat Airport Services Joint Stock Company (Sasco, stock code: SAS) plans to submit to the upcoming annual general meeting of shareholders a net revenue target of VND2,903 billion, up 5% over the previous year. Of this, net revenue from production and business activities is VND2,788 billion, up 8% over the previous year.

Sasco targets pre-tax profit of VND343 billion, up 3% year-on-year. The company expects basic earnings per share to reach VND1,915, a slight difference from VND1,889 last year. The company expects to pay VND105 billion to the state budget, up 5% year-on-year.

According to Sasco's board of directors, this plan is based on the prospect of a better recovery for Vietnam's economy , but the aviation industry still faces huge challenges in terms of fuel prices, exchange rates, and the openness of key international markets. The board of directors added that the world's economic growth is not yet stable, war and epidemics still pose many potential risks, and rising raw material prices and inflation also affect the company's production and business activities.

Sasco’s business plan this year is also based on the estimated passenger volume of the Airports Corporation of Vietnam (ACV) at Tan Son Nhat. Specifically, the number of passengers arriving and departing is estimated at 42 million, an increase of 3% compared to the previous year and 4% compared to 2019 - the period when aviation activities were not affected by the pandemic.

Sasco's Board of Directors also added that in case the market situation changes due to the impact of force majeure from global economic and political instability affecting the industry's operations, the company will submit to the shareholders' meeting to authorize the Board of Directors to adjust the 2024 production and business plan in accordance with reality.

In 2023, Sasco recorded net revenue of VND 2,762 billion and pre-tax profit of VND 334 billion, up 17% and 22% respectively compared to the original plan. At the end of 2023, Sasco had total assets of VND 2,249 billion, up 10% compared to the beginning of the period. Liabilities as of December 31, 2023 were VND 765 billion, up 48% compared to the beginning of the period.

Also according to the upcoming annual shareholders' meeting, the current distributed after-tax profit is 285.5 billion VND. The company set aside a total of 11.7% for the reward, welfare and bonus funds for the Board of Directors and the Supervisory Board, equivalent to 33.4 billion VND. After that, the company fixed the dividend rate at 18.26%, equivalent to 243 billion VND. Because the company has distributed the first dividend at a rate of 8%, the remaining amount will be implemented after the profit distribution plan is approved. After the distribution, the company has 8.4 billion VND in retained after-tax profit.

In addition, Sasco also presented shareholders with a plan to temporarily pay the first dividend for this year at a rate of 6% in cash, equivalent to each share receiving 600 VND.

Source