PHR - 2023 profits exceed our expectations due to VSIP III land sales recognition – Earnings Flash
  • 2024-01-19T00:00:00
  • Company Research
  • PHR released Q4 2023 results with revenue decreasing 20% YoY to VND461bn (USD19mn) while NPAT-MI was down 64% YoY at VND151bn (USD6.2mn). The lower profit YoY was mainly because of a lower income from VSIP III land compensation.
  • 2023 revenue fell by 21% YoY to VND1.4tn (USD55.6mn) mainly due to a decrease in the rubber and wood segment. The revenue result was equivalent to 98% of our forecast.
  • 2023 NPAT-MI declined by 30% YoY to VND622bn (USD26mn). The NPAT-MI result surpassed our forecast by 19% because of an unexpected increase in compensation income from VSIP III which we attribute to the profit (VND84bn/USD3.4mn attributable to PHR in Q4 2023) from VSIP III's IP land sales to Pandora and Lego in 2022. Additionally, as part of the compensation income for rubber land conversion, PHR is entitled to 20% of the profit that VSIP III generates from its 691 ha of converted rubber land (out of the total 1,000 ha for the VSIP III IP).
  • We anticipate potential downside risk to our 2024F NPAT-MI forecast (pending a fuller review) given a large portion of the compensation income from VSIP III's IP land sales in 2022 was recognized more rapidly than we previously projected.

PHR’s 2023 results

VND bn

Q4 

2022

Q4 

2023

YoY

2022

2023

YoY

2023F

2023 as % of 2023F

Net revenue

577

461

-20%

1,709

1,351

-21%

1,375

98%

  • Rubber & wood

500

471

-6%

1,457

1,127

-23%

1,136

99%

  • IP segment

76

-10

N.M.

252

224

-11%

239

94%

Gross profit

143

88

-38%

401

330

-18%

312

106%

SG&A expenses

-64

-46

-29%

-157

-135

-14%

-124

109%

EBIT

79

42

-46%

245

195

-20%

188

104%

Financial income

93

44

-52%

179

180

0%

167

107%

     Dividend

56

0

N.M.

56

16

-71%

16

104%

Financial expense

-7

-8

15%

-21

-24

14%

-24

98%

Net income from affiliates

-39

22

N.M.

30

82

175%

78

106%

Net other income

412

86

-79%

698

360

-48%

277

130%

     Compensation

409

84

-80%

698

284

-59%

200

142%

     Others

3

2

-26%

0

77

N.M.

76

101%

PBT

533

187

-65%

1,127

794

-30%

686

116%

NPAT-MI

417

151

-64%

885

622

-30%

523

119%

 

 

 

 

 

 

 

 

 

GPM

24.8%

19.1%

 

23.5%

24.5%

 

22.7%

 

  • Rubber & wood

15.7%

19.9%

 

14.4%

14.7%

 

12.0%

 

  • IP segment

84.4%

59.2%

 

73.9%

73.7%

 

73.4%

 

OPM

13.7%

9.2%

 

14.3%

14.5%

 

13.7%

 

NPM

72.4%

32.8%

 

51.8%

46.1%

 

38.1%

 

Source: PHR, Vietcap forecast (last updated December 21, 2023)

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