- DGC released its Q4 2022 results, which included NPAT-MI of VND1.0tn (USD44mn; -21% YoY & -27% QoQ). DGC’s 2022 revenue increased 51% YoY — achieving 97% of our 2022F — and its NPAT-MI surged 133% YoY — completing 91% of our 2022F. 

- Per our estimate, although DGC’s 2022 ASP was equivalent to our forecast, its sales volume trailed our expectation as it achieved 96% of our forecast, which we attribute to weaker demand amid the global economic slowdown. This underperformance was especially pronounced in agricultural phosphates. 

- Weakened demand was also reflected in selling prices. In Q4 2022, DGC’s price spread (selling prices – key input material and energy costs) of wet phosphoric acid (WPA) compressed as WPA prices sank from USD750/tonne to USD500/tonne, which was partly offset by a sharp correction in input sulfur prices.

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