VIS Rating - An Affiliate of Moody's presents our update on the 2024 full-year financial performance of 30 top-revenue listed infrastructure companies.
Here's what you need to know:
☑️ In 2024, our covered infrastructure operators saw a 19% year-over-year (yoy) revenue increase, with net income up 26% due to higher traffic demand. Strong economic activities, substantial recovery of tourism, and improved connectivity between provinces have pushed passenger and cargo transportation to increase by 10% yoy in 2024, significantly higher than the average 2% yoy during 2018 - 2023. Toll road operators (HHV, CII) reported a 10–20% growth in pass-through traffic volume, seaport operators (GMD, VSC) saw 25 - 30% growth, and airport operators (ACV, SCS) recorded a 5-10% growth.
☑️ Over the last year, infrastructure operators saw a modest 3% yoy increase in total debt, supported by stronger operating cash flow and significant equity funding through share issuances. The sector’s operating cash flow grew 37% yoy, driven by strong earnings and accelerated public investment disbursement. Several major infrastructure projects, such as the North-South Expressway components (Cam Lam Vinh Hao, Dien Chau Bai Vot), interstate highway (Tan Phu Bao Loc), and seaport expansion (Chu Lai, Lach Huyen) were completed ahead of schedule, strengthening cash flows for infrastructure companies. Meanwhile, the top 30 top-revenue listed infrastructure companies raised 8% more equity through share issuances in 2024 to reduce debt and fund CAPEX, with GMD, CII, HHV, and VSC successfully issuing shares throughout the year.
“Infrastructure operators' profitability and cash flow improved significantly, while debt level remained stable in 2024. We expect 2025 to remain a strong year for infrastructure companies. The government plans to increase public investment by 32% in 2025, which will further accelerate infrastructure project completion and thereby create new cash flows for the sector. Buoyed by increasing economic activities to achieve a higher GDP growth target in 2025, traffic demand will accelerate, supporting sales growth and enhancing the financial performance of infrastructure companies in 2025.” - Nguyen Ly Thanh Luong, CFA, ACCA, FMVA – Lead Analyst, VIS Rating.
Exhibit 1: Infrastructure operator's profitability and cash flow improved significantly in 2024
Source: VIS Rating
Note: Top 30 listed infrastructure companies in terms of revenue
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