PC1 published strong Q4 2022 results with revenue of VND2.3tn (USD97mn; +9% YoY) and NPAT-MI of VND188bn (USD8mn; +33% YoY). The robust NPAT was mainly due to surging profit from the power construction segment, higher financial income and forex gains. In Q4 2022, the power construction segment’s gross profit jumped 133% YoY with revenue rising 29% YoY and gross margin expanding 541 bps to 12.7%.

2022 adjusted NPAT increased 24% YoY to VND600bn (USD25mn) and completed 101% of our full-year forecast. Conversely, 2022 reported NPAT-MI declined 35% YoY due to forex losses and 2021’s high base (with a revaluation gain). 2022 reported NPAT completed 148% of our full-year projection due to lower-than-expected VND depreciation vs the USD.

We foresee potential upside risk to our 2023 NPAT forecast due to a higher profit contribution from the power construction segment as PC1 secured a record-high backlog in 2022 and as its margin was better than our expectation.