- DHC announced Q2 2022 results with revenue and NPAT decreasing 2% QoQ and 43% QoQ, respectively. We attribute these results to weak demand from Vietnamese export businesses and FX losses. We do not make a YoY comparison because Q3 2021 was a low base as Vietnam’s manufacturing was disrupted by COVID-19.

- 9M 2022 revenue and NPAT-MI fulfilled 78% and 64% of our respective forecasts. We see potential downside risk to our forecasts, pending a fuller review. 

- In terms of segmental performances, we estimate that paper revenue remained flat vs Q2 2022’s low level and despite the fact that H2 is typically DHC’s high season.  Meanwhile, packaging revenue (~10% of total revenue) slumped another 20% QoQ after having fallen in Q2 2022. Paper demand did not improve because weakened demand from developed economies weighed on Vietnam’s export businesses.