NT2 - Q1 suffers VND158bn loss - Earnings Flash
  • 2024-04-22T00:00:00
  • Company Research
  • NT2 announced its Q1 2024 results with revenue of VND262bn (-88% YoY) and a net loss of VND158bn vs Q1 2023’s NPAT-MI of VND234bn due to significantly low sales volume of 152 mn kWh (-86% YoY), nearly zero contracted volume (Qc), lower average-selling-price (ASP) of VND1,728/kWh (-15% YoY), and a higher gas price (+5% YoY).
  • Q1 2024’s net loss fulfilled 64% of our full-year forecasted net loss of VND249bn. We note that this Q1 loss includes VND70bn in other income due to the revaluation of inventory for spare parts for maintenance, after the accumulated operating hours reached 100,000. We expect NT2 to book VND155bn for EVN’s compensation for FX loss in Q4 2024 to partly help earnings reach our forecast.
  • We see slight upside potential to our 2024 earnings forecast (i.e., slightly lower loss), pending a fuller review, mainly due to potentially strong demand in Q2 2024 following NT2’s recent aggressive sales volume guidance of 3.2 billion kWh (+11% YoY). We currently forecast a 2024F sales volume of 1.9 billion kWh (-33% YoY).
  • We currently have an UNDERPERFORM rating for NT2 with a target price of VND20,100/share.

NT2’s Q1 2024 results 

VND bn

Q1 2023

Q1 2024

YoY

% of 2024F

Sales volume (million kWh)

1,075

152

-86%

8%

Qc (million kWh)

1,041

1

-100%

0%

ASP (VND/kWh)

2,031

1,728

-15%

83%

Gas price (USD/MMBTU)

8.9

9.3

5%

96%

 

 

 

 

 

Revenue

2,183

262

-88%

6%

COGS

-1,931

-487

-75%

11%

Gross profit

252

-225

N.M

81%

SG&A

-20

-15

-26%

16%

Operating profit

232

-240

N.M

65%

Financial income

22

19

-12%

15%

Financial expense

-7

-8

13%

23%

Other income

0

70

N.M

N.M

Profit before tax

247

-158

N.M

57%

NPAT-MI, reported

234

-158

N.M

64%

NPAT-MI, adjusted

235

-229

N.M

59%

Source: NT2, Vietcap

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