Vietjet the hottest stock on February 28 (update)

March 01, 2017 | 07:00
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Vietjet stock (HoSE: VJC) is the hottest of all the listed companies’ stocks today as investors were still queueing to buy three million of the stocks as of the end of the trading session.

VJC ended today at the upper limit allowed by the Vietnam Securities Depository, namely VND108,000 ($4.74). Only more than 1,000 of the stocks were sold, leaving the orders to buy three million on hold.

Foreign investors, who are eligible to purchase a total of 7.2 million shares, have not been able to get the stocks today.

A few days ago Vietjet already registered price on the OTC of VND113,000 ($4.96) so the price may rise even more.

In 2017 Vietjet aims for revenue of VND42 trillion ($1.85 billion), up 49 per cent, and net profit of VND3.4 trillion ($149 million), up 64 per cent on year. In 2019, the company aimed for revenue of at least VND57 trillion ($2.5 billion). In order to meet this target the company will have to achieve a revenue growth of 50 per cent in 2017, before a 16-17 per cent growth in the following years.

In 2017-2019 the company expects to pay dividend of VND5,000 (22 US cent) a share, at least VND3,000 (13 US cent) in cash.

By 2019, the company expects to expand its fleet from 41 as of the end of 2016 to 78. It plans to increase frequency of north-south flights, operate more domestic flights, and have more international flights within the radius of six hours.

The company is also investing in human capital, with a new training facility for pilots that is going to come into operation by the end of this year, and in infrastructure, as it recently asked for the Ministry of Transport’s permission to invest VND20 trillion ($880 million) Chu Lai international airport and the T4 terminal at Tan Son Nhat airport, besides having just been allowed to invest in Cam Ranh international airport.

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By By Ha Duy

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