GVR - Profits decline YoY in Q3, still in line with our expectation

- GVR announced Q3 2022 results with revenue edging down 4.9% YoY to VND5.8tn (USD239mn) while NPAT-MI plunged 33% YoY to VND835bn (USD34mn). The top-line YoY decline was mainly driven by a decrease in natural rubber latex and product revenue, which dropped 14% YoY to VND4.2tn (USD171mn; accounting for 72% of total revenue in the quarter). The bottom line was dragged down by an NPM contraction of around 6 ppts YoY.

- In 9M 2022, revenue fell 2.3% YoY to VND16.3tn (USD665mn), but NPAT-MI edged up 3.2% YoY to VND2.9tn (USD118mn). We note there was an 82% YoY surge in 9M 2022 net other income of VND770bn (USD31mn).

- 9M 2022 revenue and NPAT-MI represented 61% and 71% of our respective full-year forecasts. We anticipate no major risks to our 2022F forecasts as Q4 is normally a peak season for natural rubber latex exports.