GVR - YoY flat profit guidance amid increased production costs - AGM Note
  • 2022-06-17T00:00:00
  • Company Research
  • GVR held its AGM in HCMC on June 17, 2022. 
  • Shareholders approved GVR’s 2022 business plans for total income (including revenue, financial income and other income) of VND29.7tn (USD1.3bn; +4.8% YoY) and NPAT of VND5.3tn (USD232mn; flat YoY), representing 92% and 84% of our respective full-year forecasts.
  • We mainly attribute the gap between our 2022F NPAT forecast and GVR’s guidance to our higher forecasts for (1) profit contributed by the rubber segment — which we expect will achieve profit growth of ~7% YoY in 2022F vs GVR’s flat YoY profit guidance — and (2) financial income from divestments as GVR guides for VND500bn-600bn (USD22mn-26mn) vs our current forecast of VND841bn (USD37mn) in 2022F. We see potential downside risks to our forecasts, pending a more extensive review.

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