2020 is an unprecedented year in the history of the aviation industry. Countries say no to foreign tourists, causing planes to lie waiting at airports, pilots quit their jobs, and major airline companies in the world losing tens of billions of dollars, all because of Covid-19. In Vietnam, national airline Vietnam Airlines expects a consolidated loss of 14,445 billion dong, of which the parent company’s loss is expected at 12,000 billion dong.
However, in another angle, companies operating in the logistics industry at the airport still maintained their operations, revenue and profit decreased but not significantly compared to the gray picture of the whole industry. Notably, the fourth quarter profit of Saigon Transportation Services (UPCoM: STS) has recovered significantly to the highest level in 3 years.
Noi Bai Cargo Services Joint Stock Company (NoiBai Cargo – HoSE: NCT) announced that the total revenue of the fourth quarter of 2020 reached 205.6 billion VND, an increase of 11% in the same period last year, profit after tax reached 52.5 billion VND an increase of 5.6%. The reason for the increase in the profit after tax in the fourth quarter is that the company received a dividend of VND 7.1 billion from the out-of-business investment (in the fourth quarter of 2019, there was no such dividend).
Accumulating the whole year, the company achieved total revenue of nearly 697 billion VND, down 21.6% compared to 2019, profit after tax reached 206.75 billion VND, down 14.6%, up 8% compared to the plan. out early in the year. EPS reached 7,495 VND.
Business results of NCT
According to the explanation of the NCT, the Covid-19 translation has a great impact on the aviation industry in general and the air cargo services in particular. Due to the impact of the epidemic, the output of goods exploited to and from Noi Bai international airport decreased compared to 2019. However, the company always followed market developments, focusing resources in close coordination with other The airline maintains its operational plan, especially to operate freighter freighter flights.
SCS’s business results
Meanwhile, Saigon Cargo Services Joint Stock Company (HoSE: SCS) announced fourth quarter revenue of about 197 billion dong, a negligible decrease compared to the same period last year, after-tax profit reached 128.5 billion dong. decreased by nearly 5%. Accumulating the whole year, SCS’s revenue reached nearly 693 billion, down 7.4%, profit after tax reached 464 billion, down 7.5% compared to 2019. Notably, SCS’s gross profit margin Although decreasing YoY but still at a very high level, 78%.
SCS share price recovered significantly, trading at 135,000 dong / share
Air freight will recover in 2021
According to Transport Intelligence (Ti) analysis, twice in the past decade, the air transport market has been driven by inventory re-stocking cycles. These are characterized by a rapid increase in new export orders growth, which takes place at a time when the global economy and trade are rapidly developing.
However, given capacity constraints, it is unlikely that air transport will increase so strongly next year. After the global economy plunged to its lowest levels in April and May of this year, some cargo stockpiling took place, but shipping and integrators (via the national air network have the strongest increase in volume.
Ti expects both sea and air freight forwarding to see a strong boost from the industrial and automotive sectors next year, as well as continue to see positive growth in the healthcare and medicine. For example, J.P.’s Global Procurement Managers’ Index (PMI). Morgan hit 53.0 in October, the highest level in 29 months.
Car sales have fallen by 25-30% in the first half of 2020 but are expected to recover to around 17% for the full year. This demonstrates the recovery of industries and the path of growth that has been set for 2021.
With the possibility of launching several vaccines, the volume of air freight will increase. In September, IATA estimated delivery of a single dose to 7.8 billion people would fill 8,000 B747 cargo planes. While other modalities like road and rail could be used in the region, sufficient air transport capacity is essential for global rollout, Ti said.
Meanwhile, the volume of cross-border e-commerce has accelerated this year driven by blockade measures and will set a strong growth path in the coming years. Retail and fashion are the two leading verticals, as they have recorded annual sales growth of 44% and 27% respectively in the first 8 months of 2020. With these sectors performing well, the sector Forwarders are likely to recover in the medium term.
Finally, Ti forecasts that the air freight forwarding market will grow at a compound annual growth rate (GAGR) of 5.6% in the period 2020-2024 and the sea freight forwarding market will reach a CAGR. 5.2% over the same period. The air transport market has a lower growth base, after forecasts show it will fall 13% by 2020. Its recovery will also depend in part on the recovery of passengers by road.
Source: ndh.vn – Translated by fintel.vn