- CTD reported Q4 2022 revenue of VND6.2tn (USD264.0mn; +115% YoY vs 2021’s low base & +100% QoQ) and NPAT-MI of VND19bn (USD0.8mn) vs a net loss of VND63bn (USD2.7mn) in Q4 2021 and a net loss of VND4bn in Q3 2022. 

- We attribute CTD’s QoQ improvement in revenue and gross profit margin to the company being able to recognize income from backlog finished in Q4 2022. CTD’s gross margin improved QoQ to 2.8% in Q4 2022 from 1.1% in Q3 2022. 

- However, CTD booked VND89bn (USD3.8mn) of net provision expenses in Q4 2022 under SG&A expenses vs VND239bn (USD9.7mn) in Q2 2022 and VND42bn (USD1.8mn) in Q3 2022. This provision translated to a loss for CTD at the EBIT level in Q4 2022 despite a recovery of revenue and gross margin. For full-year 2022, CTD booked VND370bn (USD15.7mn) of total net provision expenses, translating to a provision balance for doubtful receivables of VND996bn (USD42.2mn) at end-2022.