- 2024-01-31T00:00:00
- Company Research
- NKG reported Q4 2023 revenue of VND4.5tn (USD182.0mn; +5% QoQ & +4% YoY) and NPAT-MI of VND22bn (USD0.9mn, -5% QoQ, vs a VND414bn/USD8.6mn net loss in Q4 2022).
- NKG’s core performance improved QoQ, with EBIT growing 113% QoQ which was driven by 1) galvanized steel sheet and steel pipe sales volume growing approximately 7% QoQ and 2) gross margin expanding to 1.7% from 0.8% in Q3 2023. For full-year 2023, NKG’s galvanized steel sheet and steel pipe sales volume dipped 2% YoY.
- Full-year 2023 revenue was VND18.6tn (USD759.0mn; -19% YoY) and NPAT-MI was VND117bn (USD4.8mn; vs a VND125bn/USD5.1mn net loss in 2022). As NKG’s 2023 revenue and NPAT-MI results trailed our expectations, we anticipate downside risk to our forecast, pending a more extensive review.
NKG’s 2023 results
VND bn | Q4 2022 | Q3 2023 | Q4 2023 | QoQ | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 4,300 | 4,262 | 4,459 | 5% | 4% | 23,071 | 18,596 | -19% | 23,256 | 80% |
Gross profit | -210 | 205 | 273 | 33% | N.M. | 1,481 | 1,112 | -25% | 2,213 | 50% |
SG&A expenses | -197 | -170 | -198 | 17% | 1% | -1,388 | -739 | -47% | -1,291 | 57% |
EBIT | -407 | 35 | 75 | 113% | N.M. | 93 | 373 | 300% | 922 | 40% |
Financial income | 47 | 79 | 43 | -45% | -8% | 303 | 230 | -24% | 260 | 89% |
Financial expense | -101 | -84 | -89 | 5% | -12% | -503 | -426 | -15% | -403 | 106% |
Interest expense | -84 | -60 | -60 | -1% | -29% | -262 | -293 | 12% | -258 | 113% |
Net other gain/loss | 0 | 0 | 0 | N.M. | N.M. | 0 | 0 | N.M. | 0 | N.M. |
PBT | -461 | 30 | 30 | 2% | N.M. | -107 | 177 | N.M. | 779 | 23% |
NPAT-MI | -414 | 24 | 22 | -5% | N.M. | -125 | 117 | N.M. | 663 | 18% |
Gross margin | -4.9% | 4.8% | 6.1% |
|
| 6.4% | 6.0% |
| 9.5% |
|
SG&A expenses | 4.6% | 4.0% | 4.4% |
|
| 6.0% | 4.0% |
| 5.6% |
|
EBIT margin | -9.5% | 0.8% | 1.7% |
|
| 0.4% | 2.0% |
| 4.0% |
|
NPAT-MI margin | -9.6% | 0.6% | 0.5% |
|
| -0.5% | 0.6% |
| 2.8% |
|
Source: NKG, Vietcap forecast (last updated February 22, 2023)
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