GVR - Weak core profits partially offset by compensation income

- GVR posted Q4 2022 results with revenue declining 7% YoY to VND9tn (USD375mn) and NPAT-MI plunging 37% YoY to VND912bn (USD38mn). The top-line decline was mainly driven by a YoY decrease in natural rubber (including rubber latex and rubber products) and wood processing revenue, while the bottom line was dragged down by an NPM contraction of 4.8 ppts YoY.

- In 2022, revenue edged down 3% YoY to VND25.3tn (USD1.1bn) and NPAT-MI declined 8% YoY to VND3.8tn (USD158mn), which were mainly due to the weaker natural rubber segment and partially offset by a surge in net other income that was mainly derived from compensation income from rubber land conversion to IP development.

- GVR recognized compensation income of VND757bn (USD32mn) in 2022, which was primarily from its subsidiary Phuoc Hoa Rubber JSC’s (HOSE: PHR) land conversion to the Vietnam Singapore IP (VSIP) III in Binh Duong Province. Please find more details in our PHR Earnings Flash, published January 19, 2023.