- 2024-01-25T00:00:00
- Company Research
- BMP reported strong Q4 2023 results with revenue of VND1.5tn (USD59.4mn; +57% QoQ, +3% YoY) and NPAT-MI of VND257bn (USD10.5mn; +23% QoQ, +3% YoY).
- Strong QoQ performance in Q4 2023’s earnings was driven by a surge in revenue, which we believe was due to demand for construction materials gradually picking up towards the year-end high season.
- However, EBIT margin in Q4 2023 dipped to 22.7% vs 28.6% in Q3 2023 as 1) gross margin compressed to 40.6% from a record high of 43.0% in Q3 2023 as plastic prices gradually increased from a low base, and 2) SG&A expenses on sales jumped to 17.9% from 14.5% mainly due to a 2.2x increase in trade discounts. BMP’s full-year 2023 trade discounts were VND509bn (USD20.8mn; +49% YoY) — 10% of net revenue.
- For FY2023, revenue was VND5.2tn (USD210.5mn; -11% YoY) and NPAT-MI was VND1.0tn (USD42.5mn; +50% YoY). These results tracked marginally ahead of our expectations and fulfilled 108% and 105% of our respective 2023F full-year forecasts. As a result, we see upside to our forecast for BMP (details in our Update Report, dated November 28, 2023), pending a more comprehensive review.
BMP’s 2023 results
VND bn | Q4 2022 | Q3 2023 | Q4 2023 | QoQ | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 1,408 | 926 | 1,454 | 57% | 3% | 5,808 | 5,157 | -11% | 4,761 | 108% |
Gross profit | 475 | 398 | 591 | 48% | 24% | 1,608 | 2,116 | 32% | 1,951 | 108% |
SG&A expenses | -143 | -134 | -261 | 95% | 82% | -632 | -783 | 24% | -678 | 116% |
EBIT | 331 | 264 | 330 | 25% | 0% | 975 | 1,333 | 37% | 1,273 | 105% |
Financial income | 18 | 32 | 29 | -9% | 61% | 55 | 119 | 115% | 100 | 119% |
Financial expense | -39 | -26 | -43 | 67% | 10% | -158 | -146 | -8% | -125 | 117% |
Net other gain/loss | 1 | -2 | 3 | N.M. | 160% | -2 | 1 | N.M. | -5 | N.M. |
PBT | 312 | 269 | 319 | 19% | 2% | 871 | 1,307 | 50% | 1,244 | 105% |
NPAT-MI | 248 | 209 | 257 | 23% | 3% | 694 | 1,041 | 50% | 995 | 105% |
Gross margin | 33.7% | 43.0% | 40.6% |
|
| 27.7% | 41.0% |
| 41.0% |
|
SG&A expenses | 10.2% | 14.5% | 17.9% |
|
| 10.9% | 15.2% |
| 14.2% |
|
EBIT margin | 23.5% | 28.6% | 22.7% |
|
| 16.8% | 25.9% |
| 26.7% |
|
NPAT-MI margin | 17.6% | 22.5% | 17.7% |
|
| 12.0% | 20.2% |
| 20.9% |
|
Source: BMP, Vietcap forecast (last updated November 28, 2023)
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