GVR - Profit declines in Q1 2023 — lower than our expectation

- GVR announced Q1 2023 results with revenue declining 16% YoY to VND4.1tn (USD176mn) and NPAT-MI plunging 48% YoY to VND550bn (USD23mn).

- In Q1 2023, the top-line decline was mainly driven by an 81% YoY decrease in rubber product revenue to VND93bn (USD4mn) and a 42% YoY decrease in wood processing revenue to VND557bn (USD24mn).

- Additionally, the bottom line was dragged by an NPM contraction of 8.3 ppts, which was primarily due to a 5.7-ppt decrease in GPM and 121% YoY and 16% YoY decreases in net income from affiliates and other net income, respectively.