VFS Stock Forecast & Price Target

VinFast Auto Ltd is poised for significant growth, with the company confident in achieving more than double its vehicle deliveries in FY25, building on its strong performance in the Vietnamese market and expanding sales to Indonesia and the Philippines. The company reported a robust 48% year-over-year increase in vehicle sales for the quarter, totaling $662.9 million, driven by a remarkable 79% growth in EV deliveries domestically, indicating a solid demand for its expanding product lineup. Furthermore, VinFast expects continued momentum in its e-scooter segment due to favorable government regulations in Vietnam, which will drive further electrification and top-line growth moving forward.

VinFast Auto Ltd reported a significantly negative gross margin of (56.2%), worsened from (41.1%) in the prior period, reflecting challenges in revenue recognition and increased costs. The company experienced a substantial EBITDA loss of ($576.0) million, which exceeded prior losses and highlights the strain from delayed revenue and inflated R&D expenses associated with new vehicle models. Additionally, total cash and cash equivalents declined to $349.4 million, indicating reduced liquidity amidst heavy capital expenditures, further complicating the company's financial stability.