- 2024-07-30T00:00:00
- Company Research
* H1 2024 results: CTR announced its H1 2024 results with net revenue of VND5.6tn (USD221.0mn; +12% YoY) and NPAT-MI of VND241bn (USD9.5mn; +4% YoY), which were driven by robust revenue growth of the infrastructure leasing and construction segments. The results complete 43% and 40% of our respective full-year forecasts and are in line with our expectations. We do not see significant risk to our 2024F projections.
* Q2 2024 results: Although net revenue increased 11% YoY to VND3.0tn (USD118.1mn), NPAT-MI remained relatively flat YoY at VND125bn (USD4.9mn). This is due to (1) lower GPMs of the infrastructure leasing and construction segments, and (2) lower net financial income YoY offsetting robust YoY revenue growth of those segments.
* Infrastructure leasing segment’s revenue increased significantly by 39% YoY in H1 2024 as the tower count jumped 58% to 7,809 towers at end-H1 2024 vs end-H1 2023. In addition, the tenancy ratio remained broadly unchanged at 1.03 at end-H1 2024 vs end-H1 2023. Although the EBITDA of the infrastructure leasing segment in H1 2024 completed 39% of our full-year forecast, we believe the result is in line with our expectation. We expect this segment to deliver a stronger performance in H2 2024 vs H1 2024, driven by the acceleration of new tower construction. We note that Q1 2024 recording no new towers was a seasonal factor, while tower construction accelerated in Q2 with 1,220 new towers.
* Construction segment posted 25% YoY revenue growth from a low base in H1 2023, which we believe to be primarily led by the realization of a strong signed backlog of the residential construction subsegment carried over from 2023 and some of the new signed backlog in H1 2024.
* Operation segment recorded H1 2024 revenue growth of 10% YoY, which is mostly fueled by expansion in overseas markets, in addition to Vietnam’s fixed-line broadband subscriber growth of 7% YoY in 5M 2024, per the Ministry of Information and Communications.
* Revenue of system integration & technical services segments declined 9% YoY in H1 2024. Despite this, these segments tracked in line with our expectations as we expect the recovery of consumption spending in H2 2024 to bolster demand for products and services in these segments.
CTR’s Q2 2024 & H1 2024 results
VND bn | Q2 2024 | YoY | H1 2024 | YoY | H1 2024/ Vietcap's 2024F |
Revenue | 3,012 | 11% | 5,635 | 12% | 43% |
Operation | 1,719 | 9% | 3,111 | 10% | 49% |
Infrastructure leasing | 148 | 39% | 283 | 39% | 40% |
Construction | 782 | 36% | 1,551 | 25% | 38% |
System integration & technical services | 363 | -19% | 690 | -9% | 36% |
EBITDA | 272 | 28% | 496 | 22% | 43% |
Operation | 85 | 35% | 158 | 19% | 49% |
Infrastructure leasing | 88 | 22% | 173 | 33% | 39% |
Construction | 67 | 44% | 110 | 20% | 43% |
System integration & technical services | 32 | 3% | 55 | 2% | 46% |
PBT | 161 | 4% | 306 | 5% | 40% |
NPAT-MI | 125 | 0% | 241 | 4% | 40% |
EBITDA margin | 9.0% | 1.2 ppts | 8.8% | 0.7 ppts |
|
Operation | 4.9% | 0.9 ppts | 5.1% | 0.4 ppts |
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Infrastructure leasing | 59.4% | -8.2 ppts | 61.3% | -2.6 ppts |
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Construction | 8.6% | 0.5 ppts | 7.1% | -0.3 ppts |
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System integration & technical services | 8.8% | 2.2 ppts | 8.0% | 0.9 ppts |
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NPM | 4.2% | -0.5 ppts | 4.3% | -0.3 ppts |
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Source: CTR, Vietcap (Vietcap’s estimates for segmental EBITDA)
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