GVR – Rubber & wood recovery leads H1 profit growth – Earnings Flash
  • 2024-07-31T00:00:00
  • Company Research
  • GVR announced its Q2 2024 results with revenue of VND4.6tn (USD181mn; +8% YoY) and NPAT-MI of VND864bn (USD34mn; +56% YoY). Profit growth was mainly driven by higher revenue from the rubber & wood segment while GPM recovers.
  • In H1 2024, GVR’s revenue increased 11% YoY to VND9.2tn (USD361mn) while its NPAT-MI increased 21% YoY to VND1.3tn (USD53mn), equaling 37% and 43% of our full-year forecasts. We foresee no significant changes to our 2024F NPAT-MI forecast as we expect strong rubber consumption in H2 2024 (H2 is normally the peak season for rubber consumption), while the rubber price is expected to remain at a relatively high level. 
  • The rubber latex and rubber products segment recorded a 15% YoY increase in H1 2024 gross profit (VND1.6tn/USD64mn; accounting for 73% of GVR’s gross profit and equaling 36% of our full-year forecast). Although GVR has not released a breakdown of its sales volume and average selling price (ASP), we believe the improvement was mainly driven by a YoY increase in ASP. In H1 2024, Vietnam’s rubber exports were down 5.8% YoY in volume but up 4.5% YoY in value. 
  • Net other income in H1 2024 was down 33% YoY to VND421bn (USD16mn), of which GVR recognized VND394bn (USD15mn; +14% YoY) of income from tree liquidation and VND46bn (USD1.8mn; -79% YoY) from compensation income (vs H1 2023 compensation income of VND216bn/USD8.5mn, mainly from VSIP III).

GVR’s H1 2024 results 

VND bn

Q2 

2023

Q2 

2024

YoY

H1 

2023

H1 

2024

YoY

2024F

H1 as % of 2024F

Net revenue

4,273

4,622

8%

8,293

9,208

11%

24,921

37%

- Rubber latex

3,129

3,131

0%

6,045

6,522

8%

18,892

35%

- Rubber products

94

145

55%

187

279

50%

557

50%

- Wood

544

770

41%

1,101

1,309

19%

2,928

45%

- IP

151

170

12%

297

319

7%

800

40%

- Others

354

406

15%

664

778

17%

1,745

45%

Gross profit

969

1,173

21%

1,912

2,248

18%

5,886

38%

SG&A expenses

-508

-518

2%

-964

-995

3%

-2,652

38%

EBIT

461

655

42%

948

1,254

32%

3,235

39%

Financial income

285

235

-18%

550

462

-16%

1,014

46%

Financial expense

-157

-115

-26%

-282

-227

-20%

-591

38%

Net income from affiliates

9

59

6.9x

-18

53

N.M.

20

2.6x

Net other income

296

351

19%

631

421

-33%

1,145

37%

PBT

893

1,183

32%

1,830

1,962

7%

4,823

41%

NPAT-MI

554

864

56%

1,108

1,339

21%

3,104

43%

 

 

 

 

 

 

 

 

 

GPM

22.7%

25.4%

 

23.1%

24.4%

 

23.6%

 

OPM

10.8%

14.2%

 

11.4%

13.6%

 

13.0%

 

NPM

13.0%

18.7%

 

13.4%

14.5%

 

12.5%

 

Source: GVR, Vietcap forecast (last updated March 29, 2024)

Powered by Froala Editor