GMD - Q2 core business flat QoQ; divestment gain supports NPAT-MI

- GMD released Q2 2023 results with revenue of VND912bn (USD38.7mn; +1% QoQ & -7% YoY) and NPAT-MI of VND1.6tn (USD69.8n; 7.1x QoQ & 4.7x YoY), translating to H1 2023 revenue of VND1.8tn (USD76.9mn; -2% YoY) and NPAT-MI of VND1.8tn (USD78.3mn; 2.3x YoY).

- The abnormal surge in Q2 2023 NPAT-MI was due to a financial gain of VND1.8tn (USD78.1mn) from the Nam Hai Dinh Vu (NHDV) port divestment, which was in line with management’s guidance announced at GMD’s June 2023 AGM (see our AGM Note, dated June 9, 2023). We have not incorporated this one-off gain into our 2023F forecast.

- Excluding the NHDV port divestment, we estimate GMD’s Q2 2023 core NPAT-MI was VND211bn (USD8.9mn; +4% QoQ & -27% YoY), which translates to H1 2023 core NPAT-MI of VND413bn (USD17.5mn; -26% YoY).