AsemconnectVietnam - Saigon Ground Services (SGN) targetsprofit to fall 41% in 2025

Saigon Ground Services JSC (SAGS, code SGN) has just announced its 2025 business plan with both revenue and profit targets decreasing compared to the previous year.
At the annual general meeting of shareholders held on June 20, SGN will present its 2025 business plan to shareholders with a total consolidated revenue expected to reach VND1,392 billion, down 11% compared to 2024; but consolidated after-tax profit is expected to reach VND159 billion, down 41%.
SGN's board of directors assessed that 2025 will continue to be a year facing many difficulties and major fluctuations, both domestically and internationally. Fluctuations in oil and jet fuel prices have increased operating costs, thereby affecting ticket prices and air travel demand. In addition, global economic and political tensions continue to disrupt supply chains, negatively impacting the air transport market.
In addition, the strong development of the domestic road transport system, along with the increase in people's travel options, also reduces the level of dependence on domestic air services. Other factors such as US tax policies, foreign exchange rate fluctuations, etc. are also considered risks that directly affect the Company's costs and operations.
In particular, from the second quarter of this year, Vietjet Air will provide its own ground services, forcing SAGS to research solutions to find new customers, develop new services to increase revenue and save costs.
In addition to the above challenges, SGN believes that there are still many positive supporting factors for operations in 2025. In particular, the Vietnamese economy is expected to maintain a GDP growth rate of over 8%, creating momentum for consumption and travel demand, especially aviation. The government is investing heavily in airport infrastructure, notably the Long Thanh International Airport project, along with policies to promote tourism, expand e-visas and reduce taxes and fees... These are considered significant supports for business operations.
To cope with challenges and take advantage of opportunities, SGN has proposed 5 key operational directions this year. In particular, the Company will focus on improving service quality, investing in internal resources; promoting the search for new customers, developing value-added services to offset revenue.
SGN also prioritizes the implementation of activities to serve the expansion of production and business at Long Thanh International Airport, while strictly controlling costs and applying information technology in management and exploitation. In particular, debt collection will also be promoted this year.
N.Nga
Source: VITIC/Tinnhanhchungkhoan