CTD – Q4 2023 EBIT improves QoQ; 2023 results trail forecast – Earnings Flash
  • 2024-01-31T00:00:00
  • Company Research
  • CTD reported Q4 2023 revenue of VND5.7tn (USD231.0mn; +37% QoQ, -9% YoY) and NPAT-MI of VND69bn (USD2.8mn; +4% QoQ, +266% YoY).
  • Q4 2023 EBIT grew 172% QoQ driven both by an improvement in revenue and gross margin expanding to 3.0% from 2.4% in Q3 2023 despite SG&A expenses on sales inching up marginally QoQ.
  • For full-year 2023, CTD reported revenue of VND16.5tn (USD674.8mn; +14% YoY) and NPAT-MI of VND188bn (USD7.7mn) vs VND21bn (USD0.8mn) in full-year 2022. 
  • Strong financial income mostly derived from interest received from bank deposits, which beat our forecast and continued to be a major contributor to CTD’s 2023 net profit improvement.
  • While CTD’s full-year 2023 revenue tracked ahead of our expectation, NPAT-MI missed our full-year forecast, mostly due to the gross margin trailing our prediction. Therefore, we anticipate a downside risk to our forecasts for CTD, pending a more extensive review.
  • We note that CTD has changed its financial year from December 31 to ending on June 30, effective from the financial year starting January 1, 2023, and ending June 30, 2023. This translates to a transitioning FY2023 as a six-month financial year. In this Earnings Flash, we keep the presentation of CTD’s data in its previous financial year (i.e., in sync with the calendar year) for ease of reading and tracking performance for the calendar year of 2023. We will adjust CTD’s data into a new financial year presentation in our next update report.

CTD’s Q4 2023 (i.e., Q2 FY2024 after financial year adjustment) results

VND bn

(before financial year adjustment)

Q4 2022

Q3 2023

Q4 2023

QoQ

YoY

2022

2023

YoY

2023F

2023 as % of 2023F

(after financial year adjustment)

 

Q1 FY2024

Q2 FY2024

 

 

 

 

 

 

 

Net revenue

6,230

4,124

5,660

37%

-9%

14,537

16,532

14%

14,428

115%

Gross profit

172

100

169

69%

-1%

487

426

-12%

433

98%

SG&A expenses

-182

-83

-122

47%

-33%

-735

-398

-46%

-390

102%

EBIT

-11

17

47

172%

N.M.

-248

28

N.M.

43

64%

Net financial income

          11 

          69 

          37 

-47%

245%

        218 

        217 

0%

        193 

113%

Net other gain/loss

34

0

6

N.M.

-83%

88

6

-93%

50

12%

Shares of (loss) profit of associates

-7

0

0

-60%

N.M.

-24

-7

-71%

-25

28%

PBT

27

86

89

4%

234%

35

244

602%

262

93%

NPAT-MI

19

67

69

4%

266%

21

188

808%

204

92%

Gross margin

2.8%

2.4%

3.0%

 

 

3.3%

2.6%

 

3.0%

 

SG&A expenses

2.9%

2.0%

2.2%

 

 

5.1%

2.4%

 

2.7%

 

EBIT margin

-0.2%

0.4%

0.8%

 

 

-1.7%

0.2%

 

0.3%

 

NPAT-MI margin

0.3%

1.6%

1.2%

 

 

0.1%

1.1%

 

1.4%

 

Source: CTD, Vietcap forecast (last updated June 2, 2023)

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