VFS Stock Forecast & Price Target

VinFast Auto Ltd has demonstrated impressive financial performance, achieving vehicle sales of $662.9 million for the year, representing a 48% increase year-over-year, driven by a significant 79% growth in electric vehicle deliveries in Vietnam. The company is poised to double its EV deliveries in FY25, supported by a robust home market and favorable government policies promoting two-wheeler electrification, which will restrict gas-powered vehicle purchases. With a broadened product line and anticipated manufacturing efficiency improvements, VinFast is well-positioned for continued top-line growth and increased brand awareness across new and existing markets.

VinFast Auto Ltd reported a significant deterioration in its financial performance, highlighted by a gross margin of (56.2%), a substantial decline from the prior period and year-ago figures, primarily due to delayed revenue recognition and high costs. The company also reported an EBITDA loss of ($576.0) million and an operating income loss of ($690.3) million, both of which were well below analysts' expectations and were exacerbated by increased R&D expenses related to new vehicle models. Furthermore, total cash and cash equivalents fell to $349.4 million, indicating a challenging liquidity position following heavy capital expenditures, raising concerns about the company's ability to support its operations and growth initiatives moving forward.