March 24, 2023

SERVICE AND TOURISM BUSINESSES STEP THROUGH THE PANDEMIC


After the freezing period due to the Covid-19 epidemic due to social distancing 2, by 2022, many policies have been introduced by the Government to open up as well as stimulate domestic tourism demand. Macro figures have also partly reflected the recovery of the tourism industry in the past year. According to data from the General Department of Tourism, in 2022, Vietnam’s tourism has welcomed 3.6 million international tourists, reaching over 70% of the year plan; Domestic tourists reached 101.3 million arrivals, 68.8% higher than the set target of 60 million arrivals. Total revenue from tourists reached VND 495,000 billion, 23% higher than the plan.

 
Business results of businesses serving tourism, travel, services, entertainment and entertainment also changed positively after the pandemic. One of them is the only tour operator on the floor, Vietravel (UPCoM: VTR) in 2022 to be profitable again after two consecutive years of losses. Revenue reached 3,814 billion VND, 4 times higher than the previous year. Net profit is 121 billion dong, while 2021 loss is 350 billion dong.

In the field of entertainment activities, Dam Sen Water Park (HoSE: DSN) recorded net revenue of VND 232 billion, more than 9 times higher than in 2021. Profit after tax was nearly VND 108 billion, an increase of 8 times. The above business results are a record high in the history of Dam Sen Water Park. Explaining the results, business leaders said that since the second quarter of 2022, the company’s business activities have recovered due to the well-controlled Covid-19 disease situation, wide vaccine coverage. In the whole country, people’s entertainment demand increases, so visitors to water parks also increase. At the same time, the company always focuses on promoting measures to improve service quality, implementing programs to attract customers.

 
Another entertainment place familiar to the people of Ho Chi Minh City is the Zoo and Botanical Garden. This is an animal and plant conservation park in Ho Chi Minh City, one of the 10 oldest zoos in the world. Currently, Saigon Zoo and Botanical Garden One Member Limited Liability Company is managing the entertainment activities of the Zoo and Botanical Garden. In 2022, net revenue reached VND 144.6 billion, a sharp increase from VND 45.3 billion the previous year. After deducting expenses, the profit after tax of Saigon Zoo and Botanical Garden reached nearly 3 billion VND. Although not high, this level is still 3 times higher than the plan set and is the highest level in the past 10 years. In 2021, this company’s profit is just over 500 million dong. In particular, this profit was recorded after the Saigon Zoo and Botanical Garden asked not to receive a special budget due to the impact of the Covid-19 epidemic according to the Resolution of the People’s Council of Ho Chi Minh City.
 
In the field of aviation services, both companies in this field, Airports Corporation of Vietnam (UPCoM: ACV) and Taseco Airs (HoSE: AST) also had a big profit year. In 2022, ACV recorded revenue of VND 13,834 billion, 2.9 times higher than the previous year. Thanks to the profit on exchange rate difference at the end of the period of VND 2,352 billion, financial income reached VND 4,120 billion, up 27% compared to 2021. At the same time, financial expenses recorded VND 204 billion, down. 56% over the same period due to not having to record provision and adjustment of investment. The enterprise reported a net profit of VND 7,122 billion, 9 times higher than in 2021.
As for Taseco Airs, in 2022, the company’s revenue will reach VND 603.5 billion, 4 times higher than the same period last year; gross profit was 319 billion dong, 7.4 times higher than the previous year. Gross profit margin reached 52.9%. As a result, the company earned 34 billion dong of profit after tax for shareholders of the parent company, a sharp increase compared to the 128 billion dong loss after tax in 2021. However, this profit is still far from the peak. high before the Covid-19 epidemic (in 2019, profit after tax reached VND 212 billion). But the most important thing is that the company ended a series of losses for 2 consecutive years (in 2020 with a loss of 49 billion dong, in 2021 with a loss of 118 billion dong), thereby avoiding the mandatory delisting sentence.
 
In the field of passenger transport, Tay Ninh Nui Ba Cable Car Joint Stock Company (HoSE: TCT) – a cable car service provider for Ba Den Mountain Historic, Scenic Landscape and Tourism Area in Tay Ninh Province has just announced reported a favorable business year in 2022 with revenue and profit both skyrocketing. Specifically, the company’s net revenue reached VND 63.6 billion, 1.7 times higher than in 2021. Along with revenue from financial activities of more than VND 22 billion, Tay Ninh Mountain Cable Car reported profit after tax. 20 billion, the highest in the past 3 years. Although it has not returned to the same profit level as before Covid-19, this profit shows a promising prospect for businesses. Sea transport service provider – Superdong Kien Giang (HoSE: SKG) announced revenue 2.4 times higher, reaching 410 billion VND; net profit of 44 billion dong while in 2021 it’s loss is 39 billion dong.
 
Vinasun (HoSE: VNS) – a taxi and transportation service provider has earned VND 1,089 billion in revenue, more than 2 times higher than the same period last year. Cost of goods increased less than revenue, helping the business to make a net profit of 296.4 billion dong, while the same period lost 131.7 billion dong. As a result, Vinasun made a net profit of 186.8 billion dong, while the same period lost 276 billion dong. This is also the highest profit since 2018 of the company, in addition to helping this unit escape the delisting sentence that is hanging over the head. In particular, according to business leaders, the number of taxis has returned to 100%.
Many tourism service businesses are recovering
In the context of the tourism industry’s recovery, some businesses in the hotel accommodation sector still recorded reduced profits or even losses. For example, HoNinh Van Bay Tourism Real Estate Joint Stock Company (HoSE: NVT), owner of Six Senses Ninh Van Bay, recorded revenue in 2022 of VND 337 billion, up 166%. Loss decreased from 50 billion dong to 12 billion dong. Previously, due to large losses in 2015 (-128 billion dong) and 2017 (-479 billion dong), by the end of 2022, Ninh Van Bay accumulated a loss of 742.3 billion dong. This is also the second year in a row that the business has reported a loss.
Thanh Thanh Cong Tourism (HoSE: VNG) – owner of a chain of hotels, resorts, entertainment brands with TTC Hospitality brand at major tourist destinations such as Hoi An, Da Lat, Nha Trang… 645 billion VND, 3.5 times higher. However, net profit was still modest, only 2.6 billion dong, due to a shortfall in financial income.
 
Royal International (UPCoM: RIC) – the only casino owner on the floor recorded a revenue of VND 119 billion, an increase of nearly 60% compared to the previous year. After deducting expenses, the company reported an after-tax loss of more than 61 billion dong. This loss was lower than the figure of VND 104 billion in 2021. According to the management’s explanation, the increase in revenue in 2022 compared to the same period last year is because the Covid-19 epidemic is controlled, people are no longer restricted. freedom of movement, increased tourism and service revenue. The company has found all ways to stabilize the existing customer source and exploit the new customer source. Although revenue increased, but according to the company, it was still not enough to cover costs, so business results were still at a loss. This is also the fourth year in a row that this business has reported a loss.i An Tourism and Service (HoSE: HOT) – the owner of many hotels and resorts in Hoi An announced revenue of nearly 41 billion dong in 2022, up from two years of the epidemic but still low. much higher than the pre-translation level. Enterprises said that the reason was due to fierce competition to reduce selling prices, increased costs such as maintenance of facilities, provision for bad debts, land rental costs, etc. Accordingly, the company lost 19 billion VND. VND 21 billion, down from a loss of VND 21 billion in 2021 and VND 25 billion in 2020. By the end of 2022, the Company’s accumulated loss is more than 64 billion VND and marked 3 consecutive losses, facing the risk of being delisted. listed on HoSE.
 
Not only businesses in the residential hotel segment “struggling”, but Vietnamese airlines also recorded a continued difficult year. However, high oil prices and the number of international visitors that have not returned as before the new epidemic are the main reasons for the increase in cost of goods, eroding the profits of airlines, even though revenue has doubled in 2021.

All four airlines in Vietnam currently, including Vietnam Airlines (HoSE: HVN), Vietjet (HoSE: VJC), Bamboo Airways and Vietravel Airlines, are all losing money in 2022 due to higher cost and expenses. Vietnam Airlines has lost for the third year in a row with more than 10,000 billion dong even though its revenue has tripled. Vietjet itself is a company that has never reported a loss in the past, even in 2 years the aviation industry was heavily affected by the Covid-19 epidemic. -19 but this year’s sharp increase in costs has made this business unable to continue to be profitable.

 

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