BMP - Solid QoQ earnings recovery on record-high margins in Q2 2024 - Earnings Flash
  • 2024-07-16T00:00:00
  • Company Research

BMP announced H1 2024 results with net revenue of VND2,156bn (USD84.5mn; -22% YoY; 44% of our 2024F forecast) and NPAT-MI of VND470bn (USD18.4mn; -18% YoY; 52% of our 2024F forecast). In Q2 2024, net revenue was VND1,153bn (USD45.2mn; -14% YoY; +15% QoQ) and NPAT-MI was VND280bn (USD11mn; -5% YoY; +47% QoQ).

  • Q2 revenue rebounded QoQ, but lower YoY: In Q2 2024, BMP posted net revenue of VND1,153tn (USD45.2mn), marking a 15% QoQ recovery but a 14% YoY decline. We attribute this to the gradual recovery in the residential estate sector vs Q1, particularly in the southern region where BMP dominates the market.
  • Q2 GPM continued posting a strong performance: GPM increased to 43.8% in Q2 2024 (the highest quarterly level in BMP’s operating history) from 42.4% in Q1 2024 and 42.8% in Q2 2023, which we attribute to favorable input plastic costs and BMP’s efforts in production optimization. We note that input PVC prices remained low during Q2 2024 due to sluggish demand from China’s faltering property sector, and that China accounted for 44% of global demand for PVC resins – BMP’s key input material.
  • Q2 SG&A/Sales declined QoQ and YoY: Q2 SG&A/Sales dropped to 12.2% from 17.8% in Q1 2024 and 15.1% in Q2 2023, mostly due to lower expenses related to BMP’s distribution network. This is reflected in a lower Trade discount/Sales ratio, plunging to 7.1% in Q2 2024 from 11.4% in Q1 2024 and 10.2% in Q2 2023.

As these results are largely in line with our expectations, we foresee insignificant changes to our current forecasts.

BMP’s H1 2024 results

 

Q2 2023

Q1 2024

Q2 2024

QoQ

YoY

H1 2023

H1 2024

YoY

2024F

H1 as % of 2024F

Net revenue

1,336

1,003

1,153

15%

-14%

2,776

2,156

-22%

4,850

44%

Gross profit

573

425

506

19%

-12%

1,127

931

-17%

1,912

49%

SG&A expense

-202

-179

-141

-21%

-30%

-388

-320

-18%

-748

43%

Operating profit

371

246

365

48%

-2%

739

611

-17%

1,164

53%

  - Financial income

34

19

17

-11%

-50%

57

36

-37%

85

43%

  - Financial expenses

-37

-28

-33

16%

-12%

-77

-61

-21%

-125

49%

Net other income/loss

0

0

1

105%

96%

1

1

79%

1

146%

EBT

368

237

350

47%

-5%

719

588

-18%

1,125

52%

NPAT-MI

295

190

280

47%

-5%

575

470

-18%

900

52%

SG&A expenses breakdown

Total

202

179

141

-21%

-30%

388

320

-18%

748

43%

  - Trade discount

137

114

82

-28%

-40%

264

196

-26%

529

37%

  - Normalized SG&A*

65

65

59

-9%

-10%

125

123

-1%

219

56%

GPM

42.8%

42.4%

43.8%



40.6%

43.2%


39.4%


SG&A exp./Sales

15.1%

17.8%

12.2%



14.0%

14.8%


15.4%


  - Trade discount/Sales

10.2%

11.4%

7.1%



9.5%

9.1%


10.9%


  - Normalized SG&A/Sales

4.9%

6.5%

5.1%



4.5%

5.7%


4.5%


OPM

27.7%

24.5%

31.7%



26.6%

28.3%


24.0%


NPM

22.0%

18.9%

24.3%



20.7%

21.8%


18.5%


Source: BMP, Vietcap forecast (last updated June 18, 2024). *Note: Normalized SG&A is SG&A expenses excluding trade discount.

Powered by Froala Editor