- PC1 published Q3 2022 results with revenue of VND3tn (USD123mn; -4% YoY) and NPAT-MI of VND65bn (USD3mn; -58% YoY). We attribute the discrepancy between nearly flat top-line and poor reported NPAT-MI mainly to (1) forex losses of VND100bn (USD3mn) arising from USD-denominated loans of VND4.0tn (USD163mn) and (2) surging interest expenses of VND161bn (USD7mn; +96% YoY).

- Q3 2022 gross profit increased 26% YoY thanks to the solid performance of the power generation segment and the stronger-than-expected performance of the power construction segment, which outweighed profit declining from the low-margin electric steel pole manufacturing segment. 

- PC1’s 9M 2022 reported NPAT-MI completed 55% of our full-year forecast. We foresee downside risk to our full-year 2022 earnings forecasts due to the higher-than-expected USD/VND appreciation.

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