NVL – Reports Q1 2024 loss following H2 2023 profitability – Earnings Flash & AGM Note
  • 2024-05-02T00:00:00
  • Company Research
  • NVL reported Q1 2024 results with revenue increasing 15% YoY to VND697bn (USD28mn) but net loss widening to VND567bn (USD23mn) from Q1 2023’s net loss of VND377bn (USD15mn) mainly due to lower financial income (mainly income from business cooperation contracts) and higher tax expenses in the quarter.   
  • Bond maturity: At end-Q1 2024, NVL’s total debts were VND58.2tn (USD2.3bn); with corporate bonds amounting to VND38.2tn (USD1.5bn). Total debts set to mature within 12 months were VND35.0tn (USD1.4bn), with corporate bonds amounting to VND22.3tn (USD893mn).  
  • Cash position: Total cash (including short-term deposits) at end-Q1 2024 amounted to VND3.17tn (USD127mn), in which VND75bn (USD3mn) were pledged as collateral assets for bank loans and VND626bn (USD25mn) were managed by banks under purpose of borrowings for each project. 
  • At NVL’s annual general meeting (AGM) on April 25, shareholders approved BOD’s proposals on:
  • 2024G guidance: 2024G net revenue of VND32.6tn (USD1.3bn; +585% YoY) and NPAT of VND1.08tn (USD44mn; +122% YoY). 
  • Share issuance plans: Shareholders approved an ESOP 2024 at the 2024 AGM, while the plans for rights issuance, private placement, and 2023 ESOP that were approved in December 2023 and are expected to execute in 2024G, remain intact. If the rights issuance and private placement are fully subscribed at the minimum price of VND10,000/share, NVL can raise a total of VND13.7tn (USD548mn) via equity to restructure debts, pay liabilities coming due, and develop projects. The details of equity issuance plans are as follows:
  1. Rights issuance: To issue up to 1.17 billion shares (60% of current O/S) at a minimum price of VND10,000/share to existing shareholders. The rights issuance ratio is 10:6 (i.e., shareholders who own ten shares can buy up to six new shares). The rights issuance will be given first priority, before any other offering. 
  2. Private placement: To issue up to 200 million shares (10.2% of current O/S) at a minimum price of VND10,000/share to professional securities investors. 
  3. ESOP 2023: To issue up to 1.5% of total O/S at the issuance time and at a minimum price of VND10,000/share; trading restriction for one year. 
  4. ESOP 2024: To issue up to 3.5% of total O/S at the issuance time and at a minimum price of VND10,000/share; trading restriction for one year. The issuance plan is expected to occur by end-2025 – additional plan approved at the 2024 AGM.

NVL’s Q1 2024 results 

VND bn 

Q1 2023 

Q1 2024 

YoY 

Net revenue 

604

697

15%

Gross profit 

149

190

27%

Selling expenses 

-37

-54

44%

G&A expenses 

-304

-325

7%

EBIT 

-192

-189

N.M.

Financial income 

920

640

-30%

Financial expenses 

-823

-773

-6%

  • Interest expense 

-158

-75

-52%

Other non-operating income 

7

107

1418%

Profit (Loss) from associates 

1

1

18%

PBT 

-87

-214

N.M.

PAT 

-410

-601

N.M.

NPAT-MI 

-377

-567

N.M.

  

 

 

 

Gross margin 

24.7%

27.2%

 

SG&A as % of revenue 

56.4%

54.3%

 

EBIT margin 

-31.8%

-27.1%

 

NPAT-MI margin 

-62.4%

-81.3%

 

Source: NVL, Vietcap compilation

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