HVN - Expected increase in oil prices drags on guided earnings - AGM Note

We attended HVN’s AGM on May 10, 2018 in Hanoi. management guided for a 14% increase in revenue mainly thanks to a continued increase in international traffic from the Northeast Asian region and stable domestic market share. Management guided for a 28% decrease in NPAT mainly owing to an expected increase in fuel costs of more than 20%. However, we believe HVN’s earnings guidance is nonetheless conservative as HVN already achieved 59% of its 2018G consolidated NPAT