NT2 - Doubled Q3 sales volume YoY, potential upside evident - Earnings Flash
  • 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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