DRI [NOT RATED] - Rubber price rally to support DRI’s core earnings

- Daklak Rubber Investment JSC (UPCoM: DRI) was established in 2012. The company’s core business is rubber harvesting and processing in Laos.

- Despite a substantial drop of 27.1% YoY in rubber selling volume, DRI’s H1 2024 revenue was only down 11% YoY due to a 13.8% YoY surge in rubber ASP. DRI's lower rubber selling volume in H1 2024 was primarily due to low yields caused by unfavorable weather conditions in Laos and an increase in rubber theft amid the country's sluggish economic recovery.

- DRI targets respective 2024G revenue/NPAT of VND455bn (+2.5% YoY)/ VND61bn (-17.7% YoY) and completed 40%/50% of these targets in H1 2024.