Yorkville Ives initiates VinFast stock coverage citing regional strategy
Investing.com reports that Yorkville Ives has begun covering VinFast Auto Ltd. (NASDAQ:VFS), the electric vehicle manufacturer. The firm has given VinFast an In Line rating and has set a price target of $3.50 per share. Currently, the stock is trading at $3.08, close to Yorkville Ives' Fair Value estimate of $3.17. VinFast operates a strong presence in Southeast Asia, with leadership in Vietnam and a range of models catering to various markets, from compact cars to family and commercial vehicles.
The company also manufactures vehicles in India and Indonesia to optimize supply chains and cater to regional demands. VinFast’s V-Green division is responsible for building charging infrastructure, while GSM connects the vehicles to ride-hailing and leasing services. A recent framework agreement indicates VinFast aims to supply over 1 million EVs and 4 million e-scooters to GSM by 2030, though specifics on timing and pricing are pending.
The company reported $3.68 billion in revenue for the past year, reflecting an impressive 80% growth. However, VinFast currently struggles with a gross profit margin of -53.8%. Investors can access additional insights and detailed financial metrics through their Yorkville Ives subscription. Although VinFast has a footprint in North America and Europe, its strategic focus remains on Asian markets.
The company noted that a significant portion of its volume comes through affiliated entities, and its international plants are still in the early stages of ramp-up. In related news, VinFast is merging with Future Investment Research and Development, effectively absorbing the latter’s operations. Moreover, VinFast has launched a Certified Pre-Owned Program in the United States, offering pre-owned electric vehicles, including the VF 8 and VF 9 electric SUVs, with transferable warranties through authorized dealerships across nine states.
These initiatives underscore VinFast's commitment to expanding its market reach and enhancing its overall operations.
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