GVR - High rubber prices drive 9M 2024 profit growth - Earnings Flash
  • 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%

  

 

 

 

 

 

 

 

 

GPM 

19.9%

20.7%

 

21.7%

22.6%

 

25.3%

 

OPM 

10.1%

12.1%

 

10.8%

12.7%

 

14.2%

 

NPM 

5.0%

12.2%

 

9.8%

13.2%

 

12.3%

 

Source: GVR, Vietcap forecast (last updated October 7, 2024)

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