VinFast's (Nasdaq: VFS) Q3 2024 Earnings Call - Highlights

We participated in VinFast’s (Nasdaq: VFS) Q3 2024 earnings call held on November 26. The main updates include a recap of 9M 2024 results and the business outlook for Q4 2024.

Management reaffirmed its 2024G delivery guidance of 80,000 EVs, driven by expected strong sales in the Vietnam market (with key models VF 3 and VF 5) and new deliveries in international markets in Q4 2024G. VFS plans to build a completely-knocked-down (CKD) facility in Vietnam (Ha Tinh Province) focusing on the VF 3 and VF 5, which will start construction in early December 2024G and commence operations in 2025G. In November 2024, VFS announced additional financial support through 2026 from its major shareholders VIC and VIC’s chairman, totaling USD3.4bn via grants and loans. Management maintains its expectation that the company will break even in gross margin in 2025G and EBITDA in 2026G.

We currently forecast VinFast car deliveries to grow by 105%/24% YoY in 2024/25F, reaching 68,000 and 85,000 units, respectively, mainly from the Vietnam market. We believe VIC’s Chairman’s grants will be the main funding source for VinFast in 2025-26F. For more detailed information on our forecasts for VIC’s industrial segment (mainly VinFast), please refer to our VIC Update Report, published on November 26, 2024.

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