AST- Resilient growth in 1Q26 – [Beat] – Earnings Flash

• 1Q26 net profit surged 84.6% YoY to VND101bn (USD3.9mn), driven mainly by improved passenger traffic, particularly at airports where AST has a strong presence, as well as the expansion of AST’s retail network and more favorable revenue mix. The result completed 36% of our full-year forecast.
• We see the possibility for an upward revision in our target price of VND85,400/share, and we will provide an update after further review.

Solid 1Q26 revenue growth backed by strong passenger traffic

In 1Q26, AST recorded net revenue of VND556bn (USD21.4mn), up 44.5% YoY and 13.5% QoQ. This performance was supported by: 1) passenger traffic remained relatively resilient despite uncertainties related to Middle East tensions, which began to escalate in March and are expected to have a more pronounced impact from 2Q onward. In 1Q26, international passengers reached 14 million (+19.4% YoY), while domestic passengers totaled 20.4 million (+12.6% YoY), with particularly strong growth at key airports where AST has a solid presence, including Da Nang (+29% YoY), Cam Ranh (+19.5% YoY), and Phu Quoc (+46.6% YoY); 2) the expansion of AST’s retail network supported revenue (AST added 19 new stores from 2Q25 at Terminal 3 of Tan Son Nhat and two new stores in 1Q26 at the expanded Terminal 2 of Noi Bai).

Gross margin continued to expand thanks to favorable revenue mix

In 1Q26, gross profit rose 50.4% YoY to VND365bn (USD14mn), with gross margin expanding by 2.6% pts YoY and 2.8% pts QoQ. The margin uplift was supported by: 1) a higher contribution from better-margin segments such as VIP lounges and F&B; 2) an increased share of international revenue, which typically delivers stronger margins than domestic operations; and 3) ongoing gains in operational efficiency.

SG&A expenses grew at the same pace as revenue

In 1Q26, SG&A expenses rose 44.7% YoY to VND231bn (USD8.9mn), corresponding with revenue growth. As a result, the SG&A-to-sales ratio remained stable YoY at ~41.5% and slightly declined QoQ compared with 43% in 4Q25, indicating that the company maintained effective control over operating costs.

1Q26 business results beat our expectation

Overall, AST’s net profit in 1Q26 rose by 84.6% YoY to VND101bn (USD3.9mn), beating our expectation at 36% of our full-year forecast.

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