ACV leaves door open for state capital divestment after 2025, eyes 2024 profit hike

State-owned Airports Corporation of Vietnam (ACV), which operates 22 commercial airports nationwide, will plan state capital divestment after 2025, said CEO Vu The Phiet at the firm’s 2024 AGM on Friday.

ACV, featured on the Unlisted Public Company Market (UPCoM) as ACV, is 95.5% held by the Commission for the Management of State Capital at Enterprises. Currently, it has no plan for state capital divestment, the executive stressed.

Regarding a dividend payout, Phiet said that the company had sought approval from the prime minister to distribute a dividend in stocks for a capital base increase and to retain profits for investments in key projects. If approved, the dividend payout will be conducted in June or July, he added.

Speaking about listing on the Ho Chi Minh Stock Exchange, the executive affirmed that ACV will proceed with the plan, subject to favorable conditions. The enterprise is encountering some issues related to equitization settlement and aviation infrastructure assets assigned for management, use, and exploitation, Phiet elaborated.

In terms of business goals, ACV is aiming for VND20.3 trillion ($798.5 million) in revenue and VND9.38 trillion ($368.6 million) in pre-tax profit in 2024, up 2% and 6% year-on-year, respectively.

This year, the firm wants to further develop its non-aviation services, including space leasing and advertising. It is expected to adopt franchising in some business segments as well.

For investment activities, ACV will continue to focus on building key projects, such as component No. 3 at the first-phase of Long Thanh International Airport in the southern province of Dong Nai, Terminal No. 3 at Ho Chi Minh City-based Tan Son Nhat International Airport, and the expansion of terminals at Hanoi’s Noi Bai International Airport, Hai Phong city’s Cat Bi International Airport, and Dong Hoi airport in the central province of Quang Binh.

ACV is determined to put the Long Thanh project into operation by September 2026, aiming to co-serve 90% of international flights at the adjacent Tan Son Nhat airport. The project is set to generate profits within one or two years of operation.

ACV currently has a charter capital of VND21,771 billion ($885.4 million). Its shares closed at VND103,500 ($4.07) apiece, giving the firm a market cap of VND225,314 billion ($8.85 billion).