- 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% |
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GPM | 22.7% | 25.4% |
| 23.1% | 24.4% |
| 23.6% |
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OPM | 10.8% | 14.2% |
| 11.4% | 13.6% |
| 13.0% |
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NPM | 13.0% | 18.7% |
| 13.4% | 14.5% |
| 12.5% |
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Source: GVR, Vietcap forecast (last updated March 29, 2024)
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