- DPM posted robust H1 2021 results with revenue rising 25.8% YoY to VND4.9tn (USD209mn) and reported NPAT-MI doubling YoY to VND855bn (USD37mn). 

- We estimate that DPM booked abnormal profits of ~VND210bn (USD9mn) from 1) insurance compensation for technical issue that happened in 2019 and 2) additional profit from 2020 (per a State auditor’s request) that was booked in H1 2021.

- Excluding the one-off profit, recurring H1 NPAT-MI rose 57.2% YoY as 1) we estimate that average urea price increasing ~35% YoY outweighed an input cost hike of 41.7% YoY and sales volume decline of 9.6% YoY due to a 33-day maintenance period in Q2 2021. Also, we believe the performance of the NPK fertilizer and chemical segments was solid thanks to strong NPK and ammonia (NH3) selling prices.

- Recurring NPAT-MI in Q2 2021 rose 55.3% YoY and was almost double that in Q1 2021, which was mostly thanks to strong urea, NH3 and NPK prices. 

- Revenue, reported and recurring NPAT-MI in H1 2021 fulfilled 60.4%, 102.7% and 88.7% of our respective full-year forecasts. Core H1 2021 earnings results beat our expectation as they were driven by stronger-than-expected selling prices across all products. We foresee upside to our current forecast, pending a fuller review.