- 2024-07-30T00:00:00
- Company Research
- DHC announced its H1 2024 results, with revenue increasing 11% YoY, but NPAT-MI decreasing 35% YoY. These results fulfill 50% and 37% of our respective 2024F full-year forecasts.
- According to our estimates, in Q2 2024, Southeast Asia OCC import prices remained at a high level but reduced by 5% QoQ. In contrast, packaging paper prices in southern Vietnam continued trending up with a 6% QoQ increase, reaching approximately VND9,700/kg by the end of June.
- In Q2 2024, DHC’s revenue increased by 25% QoQ and 27% YoY. This is due to slightly higher sales volume and paper prices recovering, per management. Additionally, in Q2 2024, the second carton boxes factory sales volume increased 51% YoY, contributing an NPAT of VND3bn.
- However, the GPM fell from 17.2% in Q2 2023 to 10.8% in Q2 2024, mainly due to the rise in OCC input prices outpacing the recovery in paper prices.
- We maintain our expectation for a recovery in H2 2024 earnings, supported by a gradual widening in the price spread and high-cost input OCC inventory depleting. Nevertheless, we foresee potential downside risk to our forecasts, pending a fuller review.
DHC’s H1 2024 results
VND bn | Q2 2023 | Q1 2024 | Q2 2024 | Q2 2024 YoY | H1 2023 | H1 2024 | H1 2024 YoY | H1 2024/2024F | 2024F |
Revenue | 801 | 811 | 1,016 | 27% | 1,649 | 1,827 | 11% | 50% | 3,646 |
Gross profit | 137 | 104 | 110 | -20% | 284 | 214 | -25% | 41% | 525 |
Operating profit | 103 | 67 | 72 | -30% | 203 | 139 | -32% | 37% | 375 |
PBT | 107 | 63 | 70 | -35% | 206 | 133 | -35% | 36% | 367 |
NPAT-MI | 92 | 56 | 60 | -34% | 178 | 116 | -35% | 37% | 315 |
GPM | 17.2% | 12.8% | 10.8% |
| 17.2% | 11.7% |
|
| 14.4% |
SG&A/revenue | -4.4% | -4.6% | -3.7% |
| -4.8% | -4.1% |
|
| -4.1% |
OPM | 12.8% | 8.2% | 7.1% |
| 12.3% | 7.6% |
|
| 10.3% |
NPM | 11.5% | 6.9% | 5.9% |
| 10.8% | 6.3% |
|
| 8.6% |
Source: DHC, Vietcap forecast
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