• CTR announced its Q1 2024 results with net revenue of VND2.6tn (+12% YoY) and NPAT-MI of VND116bn (+7% YoY), which were primarily driven by robust growth of the towerco segment. The results fulfilled 20% and 18% of our respective full-year forecasts. We foresee potential slight downside risk to our 2024F projection as all segments (excluding operation) slightly trail our forecasts. The operation segment delivered results in line with our expectation in Q1 2024.
• Towerco segment: Revenue increased significantly by 40% YoY due to the tower count jumping 52% YoY to 6,589 towers at end-Q1 2024 vs 4,321 towers at end-Q1 2023. In addition, the tenancy ratio remained broadly unchanged at 1.03 at end-Q1 2024 vs end-Q1 2023. Although we believe the towerco segment will deliver stronger performance in the remaining quarters of 2024 vs Q1 due to a seasonal factor, the results slightly trail our forecasts mainly due to a lower-than-expected tenancy ratio. However, the broadband along the North-South Highway project, which has not yet been incorporated into our projections, gives potential upside to our forecasts.
• Construction segment posted 15% YoY revenue growth, which we believe to be primarily led by the realization of a strong signed backlog of the residential construction subsegment in 2023. However, we estimate that the construction EBITDA fulfilled 16% of our full-year projection, which slightly trails our expectation.
• Operation segment recorded revenue growth of 10% YoY mainly driven by growth of the overseas market – in line with our forecasts.
• System integration & other segments delivered 5% YoY revenue growth, primarily driven by the solar energy solutions, M&E, and ICT sub-segments. These segments track behind our projections although we expect the recovery of consumption spending in H2 2024 to bolster demand for products and services of these segments.

CTR’s Q1 2024 results

Source: CTR, Vietcap (Vietcap’s estimates for segmental EBITDA)

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