- 2024-01-31T00:00:00
- Company Research
- CTR announced 2023 results with revenue of VND11.3tn (USD462mn; +19%YoY) and NPAT-MI of VND517bn (USD21mn; +13%YoY), which was largely in line with our 2023 full-year forecast, achieving 103% and 101% respectively. While CTR’s 2023 results are broadly in line with our forecast, we see upside potential to our 2024 forecast mainly due to the recent development in 5G rolling out in Vietnam, which has not yet been reflected in our assumptions, pending a fuller review.
- For Q4 2023, net revenue was VND3.2tn (USD130mn; +25% YoY) and NPAT-MI was VND143bn (USD5.9mn; +17% YoY).
- Towerco: Revenue for both Q4 2023 (+35% YoY) and FY2023 (+39% YoY) saw strong YoY growth, with the full-year performance meeting 102% of our forecast. In 2023, CTR built 2,150 new towers, fulfilling 108% of our 2023F forecast of 2,000 towers. As of YE2023, CTR owned 6,436 towers and had 208 shared towers, maintaining a tenancy rate of 1.03.
- Telecom operation: Revenue increased on a YoY basis for both Q4 2023 and FY 2023, at 4% and 19% respectively, mainly driven by the continued increase in infrastructure investments in the domestic market and fixed line broadband subscriber growth in both the domestic and foreign markets. Telecom operation’s revenue achieved 99% of our 2023F forecast.
- Construction: Revenue for Q4 2023 with 76% YoY growth and FY 2023 with 41% YoY growth was ahead of our expectations and the 2023 actual construction revenue is 10% higher than our 2023F forecast. For the business-to-consumer (B2C) subsegment and as of 2023, the company had a presence in 2,500 out of Vietnam’s 10,609 communes. In 2023, the company’s total contracts (B2C & B2B) were worth VND2.1tn in 2023.
- System integration & others: Revenue increased by 13% YoY in 2023 and by 10% for Q4 2023, achieving 101% of our full-year forecast, driven by M&E and solar energy installments which offset lower demand for ICT products stemming from weak consumption.
- CTR guides for PBT to increase at least 4% YoY in 2024. The company expects revenue in 2024 to increase by at least 10% YoY. We believe that CTR’s guidance is set conservatively, as in each of the past four years, revenue and PBT respectively exceeded the company’s expectations by 110% and 121% on average.
CTR’s Q4 2023 and FY 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | FY 2022 | FY 2023 | YoY | 2023 as % of 2023F |
Net revenue | 2,539 | 3,175 | 25% | 9,467 | 11,299 | 19% | 103% |
Telecom operation | 1,257 | 1,311 | 4% | 4,894 | 5,532 | 13% | 99% |
Towerco | 91 | 122 | 35% | 314 | 435 | 39% | 102% |
Construction | 651 | 1148 | 76% | 2508 | 3538 | 41% | 110% |
System integration & others | 541 | 594 | 10% | 1751 | 1794 | 2% | 105% |
Gross profit | 218 | 274 | 26% | 757 | 886 | 17% | 103% |
Telecom operation | 79 | 74 | -6% | 295 | 305 | 3% | 100% |
Towerco | 20 | 35 | 75% | 96 | 134 | 40% | 99% |
Construction | 58 | 110 | 90% | 230 | 293 | 27% | 109% |
System integration & others | 62 | 56 | -9% | 136 | 154 | 13% | 101% |
PBT | 154 | 179 | 16% | 570 | 645 | 13% | 101% |
NPAT-MI | 123 | 143 | 17% | 455 | 517 | 13% | 101% |
Margins |
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Gross profit margin | 8.6% | 8.6% |
| 8.0% | 7.8% |
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Telecom operation | 6.3% | 5.7% |
| 6.0% | 5.5% |
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Towerco | 21.9% | 28.3% |
| 30.5% | 30.8% |
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Construction | 8.9% | 9.6% |
| 9.2% | 8.3% |
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System integration & others | 11.4% | 9.5% |
| 7.7% | 8.6% |
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NPAT-MI margin | 4.8% | 4.5% |
| 4.8% | 4.6% |
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Source: CTR, Vietcap
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