- 2024-10-31T00:00:00
- Company Research
- GVR announced Q3 2024 results with revenue of VND7.7tn (USD309mn; +66% QoQ and +25% YoY) and NPAT-MI of VND944bn (USD38mn; +15% QoQ and +3.0x YoY). The YoY surge in earnings was primarily driven by higher revenue from rubber latex and rubber products, as higher average selling prices (ASP) resulted from strong demand and limited supply due to adverse weather.
- In 9M 2024, GVR’s revenue increased 17% YoY to VND17.0tn (USD678mn) and its NPAT-MI surged 58% YoY to VND2.2tn (USD90mn), completing 64% and 69% of our respective full-year forecasts. We foresee no significant changes to our 2024F NPAT-MI forecast as we expect sustained profit growth from the rubber segment in Q4 2024F, supported by rubber prices remaining at relatively high levels.
- The rubber latex and rubber products segment’s gross profit jumped 37% YoY to VND3.0tn in 9M 2024 (USD121mn; accounting for 79% of GVR’s gross profit and equaling 56% of our full-year forecast). GVR has not released a breakdown of its sales volume and ASPs; however, we believe the improvement was mainly driven by a YoY increase in ASPs. In 9M 2024, Vietnam’s rubber exports declined 2.2% in volume but increased 16.4% in value on a YoY basis.
- Total of financial income, net income from affiliates, and net other income recorded in 9M 2024 was VND1.4tn (USD55mn; +8% YoY), equivalent to 74% of our full-year forecasts and broadly in line with expectations.
GVR’s 9M 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY | 9M 2023 | 9M 2024 | YoY | 2024F | 9M as % of 2024F |
Net revenue | 6,195 | 7,716 | 25% | 14,489 | 16,954 | 17% | 26,573 | 64% |
- Rubber latex | 4,823 | 6,168 | 28% | 10,757 | 12,837 | 19% | 20,610 | 62% |
- Rubber products | 110 | 244 | 2.2x | 297 | 523 | 76% | 603 | 87% |
- Wood | 558 | 779 | 40% | 1,682 | 2,039 | 21% | 2,954 | 69% |
- IP | 300 | 132 | -56% | 588 | 440 | -25% | 821 | 54% |
- Others | 404 | 393 | -3% | 1,165 | 1,114 | -4% | 1,585 | 70% |
Gross profit | 1,235 | 1,596 | 29% | 3,146 | 3,832 | 22% | 6,730 | 57% |
SG&A expenses | -611 | -661 | 8% | -1,574 | -1,671 | 6% | -2,948 | 57% |
EBIT | 624 | 934 | 50% | 1,572 | 2,161 | 37% | 3,782 | 57% |
Financial income | 285 | 226 | -20% | 835 | 688 | -18% | 967 | 71% |
Financial expense | -117 | -91 | -23% | -399 | -337 | -16% | -517 | 65% |
Net income from affiliates | -269 | 5 | N.M. | -287 | 58 | N.M. | 104 | 55% |
Net other income | 100 | 232 | 2.3x | 731 | 639 | -13% | 807 | 79% |
PBT | 622 | 1,306 | 2.1x | 2,452 | 3,209 | 31% | 5,143 | 62% |
NPAT-MI | 313 | 944 | 3.0x | 1,421 | 2,240 | 58% | 3,262 | 69% |
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GPM | 19.9% | 20.7% |
| 21.7% | 22.6% |
| 25.3% |
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OPM | 10.1% | 12.1% |
| 10.8% | 12.7% |
| 14.2% |
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NPM | 5.0% | 12.2% |
| 9.8% | 13.2% |
| 12.3% |
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Source: GVR, Vietcap forecast (last updated October 7, 2024)
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