BMP – Q4 2023 earnings surge amid margin pressure; FY2023 results slightly exceed expectations – Earnings Flash
  • 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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