- 2024-10-28T00:00:00
- Company Research
* 9M 2024 results: CTR announced its 9M 2024 results with net revenue of VND9.1tn (USD364.3mn; +12% YoY) and NPAT-MI of VND387bn (USD15.5mn; +4% YoY). These results complete 71% and 66% of our respective full-year forecasts and slightly trail our expectations, mainly due to lower-than-expected revenue growth and GPMs across all segments, except for the operation segment. As a result, we see potential slight downside risk to our 2024F projections.
* Q3 2024 results: Net revenue increased 13% YoY to VND3.5tn (USD139.0mn), driven by robust revenue growth of the infrastructure leasing segment. Additionally, NPAT-MI increased at a slower pace of 4% YoY to VND146bn (USD5.8mn), which we attribute to lower GPMs YoY across all segments.
* Segmental performance in 9M 2024:
- Infrastructure leasing segment:
+ Revenue increased significantly by 43% YoY in 9M 2024, driven by the towerco business. CTR’s tower count jumped 54% YoY to 8,812 towers at end-September 2024. In 9M 2024, CTR built 2,376 new towers, fulfilling 53% of our full-year forecast of 4,500 new towers. In addition, the tenancy ratio remained broadly unchanged at 1.03 at end-September 2024 vs end-September 2023.
+ GPM contracted by 3.2 ppts YoY to 28.5% in 9M 2024, which we attribute to (1) higher depreciation expenses from new towers that were completely constructed but had not been put into operation, and (2) a lower contribution from the high-margin cable leasing business.
- The construction segment posted 13% YoY revenue growth in 9M 2024, which we believe was primarily led by the residential construction subsegment (including realization of a strong signed backlog carried over from 2023 and some of the new signed backlog in 9M 2024). However, construction revenue growth decelerated to 1% YoY in Q3 2024, which we attribute to disruptions in construction activities during Typhoon Yagi in September.
- The operation segment recorded 9M 2024 revenue growth of 13% YoY, which was fueled by (1) expansion in overseas markets and (2) Vietnam’s fixed-line broadband subscriber growth of 5% YoY in 8M 2024, per the Ministry of Information and Communications.
- The system integration & technical services segments reported a 2% YoY decline in revenue in 9M 2024.
CTR’s Q3 2024 & 9M 2024 results
VND bn | Q3 2024 | YoY | 9M 2024 | YoY | 9M 2024/ Vietcap's 2024F |
Revenue | 3,476 | 13% | 9,108 | 12% | 71% |
Operation | 1,670 | 20% | 4,781 | 13% | 77% |
Infrastructure leasing | 166 | 52% | 449 | 43% | 64% |
Construction | 1,154 | 1% | 2,705 | 13% | 67% |
System integration & technical services | 486 | 11% | 1,173 | -2% | 62% |
EBITDA* | 245 | 3% | 742 | 15% | 65% |
Operation | 73 | 11% | 230 | 16% | 77% |
Infrastructure leasing | 102 | 56% | 275 | 41% | 62% |
Construction | 42 | -43% | 153 | -7% | 59% |
System integration & technical services | 29 | -15% | 85 | -4% | 63% |
PBT | 177 | 1% | 483 | 4% | 66% |
NPAT-MI | 146 | 4% | 387 | 4% | 66% |
EBITDA margin | 7.1% | -0.7 ppts | 8.1% | 0.2 ppts |
|
Operation | 4.3% | -0.4 ppts | 4.8% | 0.1 ppts |
|
Infrastructure leasing | 61.2% | 1.6 ppts | 61.2% | -1.1 ppts |
|
Construction | 3.6% | -2.7 ppts | 5.6% | -1.3 ppts |
|
System integration & technical services | 6.1% | -1.8 ppts | 7.2% | -0.2 ppts |
|
NPM | 4.2% | -0.4 ppts | 4.2% | -0.3 ppts |
|
Source: CTR, Vietcap (*Vietcap’s estimates for segmental EBITDA)
Powered by Froala Editor