GMD - Q3 core profit grows QoQ; Gemalink result disappoints

- GMD released Q3 2023 results with revenue of VND998bn (USD41.6mn; +9% QoQ & +1% YoY) and NPAT-MI of VND254bn (USD10.6mn; +21% QoQ & +4% YoY base on core performance).

- 9M 2023 reported NPAT-MI was VND2.1tn (USD87.6mn, +161% YoY). We note that GMD recorded a financial gain of VND1.8tn (USD78.1mn) from the Nam Hai Dinh Vu (NHDV) port divestment in Q2 2023. Excluding the NHDV port divestment, we estimate GMD’s 9M 2023 core NPAT-MI of VND667bn (USD27.8mn; -17% YoY).

- While GMD’s 9M 2023 operating profit was broadly in line with our expectation (fulfilling 75% of our full-year forecast), net income from affiliates was weaker than our forecast mainly due to Gemalink’s disappointing results. This was partially offset by higher-than-expected net financial income and other income.