- 2024-10-18T00:00:00
- Company Research
- NT2 announced its Q3 2024 results with revenue of VND1,712bn (+110% YoY) and reported NPAT-MI of VND44bn (vs a loss of VND124bn in Q3 2023). We attribute the turnaround in NPAT-MI to (1) 104% YoY growth in sales volume, (2) a 3% YoY increase in ASP, with these together outweighing (3) higher YoY input gas prices and (4) a lower committed sales ratio (Qc) at 70% vs 80% last year.
- For 9M 2024, NT2 reported revenue of VND4,160bn (-20% YoY, 93% of our full-year forecast), reported NPAT-MI of VND8bn (-97% YoY, vs our 2024F forecasted net loss of VND116bn). Additionally, 9M 2024 sales volume was 1,921 kWh (-23% YoY) and completes 93% of our full-year forecast. We attribute the lower YoY NPM in 9M 2024 to the YoY rise in the average input gas price, which outweighs (1) a 4% YoY increase in ASP and (2) VND70bn of other income in Q1 2024. We note that we expect for NT2 to record VND155bn of FX loss compensation in 2024, which was not recorded in 9M.
- We see upside potential to our 2024F earnings forecast (a loss of VND116bn) due to the higher-than-expected sales volume, pending a fuller review. We currently have a MARKET PERFORM rating for NT2 with a target price of VND21,300/share.
NT2’s Q3 2024 & 9M 2024 results
VND bn | Q3 2023 | Q3 2024 | YoY (%) | 9M 2023 | 9M 2024 | YoY (%) | % of 2024F |
Revenue | 816 | 1,712 | 110% | 5,182 | 4,160 | -20% | 93% |
COGS | -949 | -1,652 | 74% | -4,900 | -4,196 | -14% | 90% |
Gross profit | -132 | 60 | N.M. | 282 | -36 | N.M. | 19% |
SG&A | -16 | -25 | 53% | -54 | -58 | 8% | 66% |
Operating profit | -149 | 34 | N.M. | 227 | -95 | N.M. | 34% |
Financial income | 35 | 27 | -24% | 75 | 65 | -13% | 56% |
Financial expense | -11 | -12 | 12% | -23 | -28 | 26% | 84% |
Other income | 0 | 1 | N.M. | 0 | 72 | N.M. | 103% |
Profit before tax | -124 | 50 | N.M. | 280 | 14 | -95% | N.M. |
NPAT-MI, reported | -124 | 44 | N.M. | 256 | 8 | -97% | N.M. |
NPAT-MI, core | -124 | 43 | N.M. | 256 | -64 | N.M. | 22% |
Source: NT2, Vietcap
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