- 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.
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