CII released Q3 2022 results with net revenue surging 744% YoY to VND2.2tn (USD89mn) while NPAT-MI was VND7bn (USD285,000; +210% YoY) vs only VND2bn (USD82,000) in Q3 2021. The marginal profit in Q3 2022 was mainly due to high interest expenses of VND268bn (USD11mn; +4% YoY) in the quarter.

In 9M 2022, net revenue increased 75% YoY to VND3.9tn (USD159mn) and NPAT-MI jumped 21.3x YoY to VND727bn (USD30mn). The bottom line was contributed by divestment gains of VND806bn (USD33mn) that were mainly derived from CII’s divestment from real estate subsidiary 577 Investment Corporation (HOSE: NBB) in Q1 2022.

Although 9M 2022 net revenue completed 63% of our full-year forecast, NPAT-MI in the period completed 97% of our full-year forecast. The high bottom-line completion rate was mainly driven by non-recurring financial gains. We therefore anticipate no major risks to our 2022F forecasts for CII, pending a more extensive review.