CTAs keep buying Treasuries, gold longs face stop-loss risk: BofA
SINGAPORE - VinFast Auto Ltd. (NASDAQ:VFS), Vietnam's dedicated electric vehicle (EV) manufacturer, reported a significant increase in its EV deliveries and revenue for the second quarter of 2024. The company, a subsidiary of Vingroup JSC, delivered 13,172 EVs during the quarter, marking a 44% rise from the previous quarter and a 43% increase year-over-year. Consequently, VinFast's total deliveries for the first half of 2024 reached 22,348 vehicles, doubling the figure from the same period last year.
The company's financial results showed a revenue of $357 million for Q2, which is a 33% quarter-over-quarter increase and a 9% rise year-over-year. Despite the growth in deliveries and revenue, VinFast experienced a gross loss of $224 million for the quarter, attributed mainly to an impairment charge on the Net Residual Value of its vehicles.
VinFast's growth is particularly notable in its domestic market of Vietnam, which saw a 108% year-over-year increase in B2C deliveries in Q2. The launch of the VF (NYSE:VFC) 3 model, a mini electric SUV, is expected to further bolster the company's sales in the upcoming quarters.
Internationally, VinFast has been expanding its presence with a strategic dealership network. As of August 31, the company had 155 showrooms worldwide, with approximately 70% being dealerships. In North America, VinFast is establishing its brand through dealer networks and showrooms across eight states. In Canada, the company reported a 15% quarter-over-quarter growth in Q2.
In Southeast Asia, VinFast entered the Indonesian market with 15 showrooms and began delivering its VF e34 EVs in Q3. The company's battery subscription offer has been a significant driver of sales in Indonesia and the Philippines.
VinFast reaffirms its target to deliver approximately 80,000 units in 2024, with Vietnam expected to play a crucial role in driving revenue for the remainder of the year. The company's comprehensive charging infrastructure, battery subscription program, and after-sales services are anticipated to reinforce its leadership in the Vietnamese EV market.
Despite near-term challenges in international markets, VinFast remains committed to its mission of promoting sustainable electric mobility globally. The company's future strategy includes continuous innovation, product expansion, and increasing market presence.
The company's management held its second quarter 2024 earnings conference call at 8:00 AM U.S. Eastern Time on September 20, 2024. This article is based on a press release statement from VinFast Auto Ltd.
In other recent news, VinFast Auto Ltd. has disclosed its unaudited financial results for Q2 2024, providing crucial insights for investors into the company's operational efficiency, revenue generation, and growth strategies in the electric vehicle market. Concurrently, the company has made strategic moves in its operations, including the formation of a Dealer Advisory Board in the United States. This board, comprising representatives from VinFast's network of 25 dealerships, aims to enhance communication and collaboration, focusing on sales, service, and market trends.
A change in board composition has also been announced, with Mr. Ngan Wan Sing Winston stepping down as independent director and Audit Committee member, effective May 1, 2024. Mr. Tham Chee Soon will replace him, serving as a member of the Compensation Committee, member of the Audit Committee, and an audit committee financial expert.
These recent developments reflect VinFast Auto's strategic measures as it navigates the competitive electric vehicle market, committed to robust governance and financial oversight as it expands its operations and broadens its market footprint.
InvestingPro Insights
VinFast Auto Ltd. (NASDAQ:VFS) has been making significant strides in the electric vehicle (EV) sector, as evidenced by their strong delivery and revenue figures for the second quarter of 2024. Their commitment to innovation and market expansion is reflected in their recent performance metrics. According to InvestingPro data, VinFast has seen a remarkable 160.45% revenue growth over the last twelve months as of Q1 2024, underscoring the company's rapid expansion in the EV market.
While VinFast is a prominent player in the Automobiles industry, InvestingPro Tips suggest that the company is quickly burning through cash and suffers from weak gross profit margins, with a gross profit margin of -39.54% over the last twelve months as of Q1 2024. This may raise concerns about the company's profitability and financial sustainability in the short term. Moreover, analysts do not anticipate the company will be profitable this year, which is crucial information for investors considering the company's long-term viability.
Despite these challenges, the company's market cap stands at a robust $9.26 billion USD, reflecting investor confidence in its growth potential. Additionally, two analysts have revised their earnings upwards for the upcoming period, indicating a positive outlook on VinFast's future performance. For investors interested in a deeper dive into the company's financials, there are 11 additional InvestingPro Tips available on InvestingPro's dedicated VinFast page (https://www.investing.com/pro/VFS), providing a comprehensive analysis of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.