Vietnam Airlines (HVN) Shares Exit Restricted Trading, Downgraded to Warning Status from July 14

Overview

Ho Chi Minh Stock Exchange (HoSE) announced on July 10 that HVN shares of Vietnam Airlines will be removed from restricted trading and moved from controlled to warning status effective July 14. The decisions reflect the airline’s improved financial position, with positive equity and net profit, though accumulated losses persist. The stock closed at VND 25,400 on July 11.

Key Facts

• HoSE Decision No. 592/QD-SGDHCM dated July 10 moves HVN from controlled to warning status from July 14.
• HoSE Decision No. 593/QD-SGDHCM dated July 10 removes HVN from restricted trading from July 14.
• The change is based on Vietnam Airlines’ audited 2025 consolidated financial statements showing non-negative equity and net profit, with an unqualified audit opinion.
• Q1 2026 consolidated revenue reached VND 36,883 billion (+20.7% YoY); net profit was VND 4,514 billion (+29.4% YoY).
• Full-year 2026 revenue target is VND 138,899 billion (+12.1% YoY); net profit target is VND 22 billion (-99.71% vs 2025’s VND 7,607 billion).
• Accumulated losses as of March 31, 2026 stood at over VND 22,300 billion.
• 2026 passenger target: 27.73 million (+8.1% YoY), including 9.8 million international (+13.4%) and 17.93 million domestic (+5.5%).

What Happened

HoSE issued two decisions on July 10 regarding HVN’s listing status. The first decision (No. 592) reclassifies HVN from “controlled” to “warning” status, citing that the company’s equity and after-tax profit are no longer negative based on the audited 2025 consolidated financial statements. The second decision (No. 593) removes HVN from the restricted trading list, as the company has remedied the causes that led to the restriction under Article 42.5 of the Listing Rules.

Vietnam Airlines has shown improving financial performance. In Q1 2026, consolidated revenue rose 20.7% to VND 36,883 billion, and net profit increased 29.4% to VND 4,514 billion. However, the company’s 2026 business plan projects net profit of only VND 22 billion, a sharp decline from the VND 7,607 billion recorded in 2025. Accumulated losses remain significant at over VND 22,300 billion as of March 31, 2026.

Market Context

HVN shares closed at VND 25,400 on July 11, down 0.59% with volume of 1,003,800 shares. The stock trades on HOSE. The removal of restricted trading and downgrade to warning status are positive steps for liquidity and investor sentiment, but the stock remains under warning due to accumulated losses. The aviation sector in Vietnam is recovering, with Vietnam Airlines targeting 8.1% passenger growth in 2026.

Strategic Significance

The regulatory changes signal that Vietnam Airlines is addressing its financial health, moving closer to normal trading status. The strong Q1 2026 results demonstrate operational recovery, but the sharp drop in full-year net profit guidance (VND 22 billion vs VND 7,607 billion) raises questions about sustainability. The reduction in accumulated losses is a key metric for eventual removal of warning status. Investors should monitor the pace of loss reduction and the company’s ability to maintain profitability amid competitive pressures and fuel costs.

What to Watch

• Q2 2026 earnings release and whether net profit trends align with the full-year target.
• Progress in reducing accumulated losses below the threshold for warning status removal (typically positive retained earnings).
• Any further regulatory actions or capital restructuring plans by Vietnam Airlines.
• Passenger traffic data, especially international routes, to gauge demand recovery.
• Fuel price movements and their impact on operating costs.