- PC1 released Q3 2023 results with revenue of VND2.2tn (-26% YoY) and reported NPAT-MI of VND64bn (-2% YoY). The YoY decline in revenue can be attributed to 80% YoY lower power construction revenue due to the power sector slowdown, which outweighed higher YoY revenue from electric steel pole manufacturing and power generation, as well as the contribution from its nickel plant and the 70%-stake Nomura industrial park (IP). Meanwhile, Q3 2023 reported NPAT-MI was flat YoY as the contribution from the nickel mining business and the Nomura IP nearly offset an 87% YoY plunge in power construction gross profit and a 22% YoY increase in financial expenses. 

- PC1’s 9M 2023 revenue, gross profit and reported NPAT-MI were VND5.2tn (-13% YoY), VND1.1tn (+3% YoY), and VND66bn (-75% YoY), fulfilling 62%, 63%, and 19% of our respective full-year forecasts. We anticipate minimal changes to our projected 2023 NPAT-MI pending a more thorough review. This is due to the expectation of negligible changes to our gross profit forecast for 2023 as a result of stronger-than-expected performance of the nickel segment which may potentially offset lower gross profits from the power construction and power generation segments. Additionally, we see potential downside to our 2023F SG&A expenses projection, which may potentially offset the upside risk to our 2023F financial expenses forecast. We note that PC1’s 9M 2023 SG&A expenses and financial expenses fulfilled 58% and 83% of our respective full-year projections. Its 9M 2023 FX loss was VND108bn vs our 2023F forecast of VND37bn.

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