- BMP reported Q1 2023 revenue of VND1.4tn (USD61.0mn; +2% QoQ & +7% YoY), which was in line with our forecast. However, BMP’s Q1 2023 NPAT-MI was VND281bn (USD11.9mn; +13% QoQ & +120%YoY), which fulfilled 49% of our full-year forecast.

- The strong NPAT-MI growth in Q1 2023 was driven by strong gross margin expanding in Q4 2023 to a record high of 38.5%, which more than offset SG&A expenses on sales increasing to 13.0% in Q1 2023 vs 10.9% in full-year 2022. We mainly attribute the surge in gross margin mainly to favorable input plastic prices.