* We attended PHR’s AGM on June 28. 

* Shareholders approved 2024G guidance for the parent company’s total income (including revenue, financial income, and other income) of VND1.5tn (USD57mn; -10% YoY), PBT of VND277bn (USD11mn; -49% YoY), and NPAT of VND245bn (USD9.6mn; -47% YoY). PHR completed 103%/92% of the 2022/2023G parent company NPAT guidance, respectively.

* PHR has not provided its consolidated profit guidance for 2024G. We forecast PHR’s consolidated NPAT-MI at VND401bn for 2024F (USD16mn; -35% YoY), mainly due to lower compensation income and IP land handovers YoY. 

* Shareholders approved (1) a FY2023 dividend at VND3,000/share (5.0% yield), and (2) a FY2024 dividend at a minimum of VND1,235/share (2.0% yield). We currently forecast FY2023 and FY2024 dividends of VND3,000/share and VND2,000/share, respectively.

* Shareholders approved the removal of a member of the Supervisory Board for the 2021-2026 period, Mr. Vo Thanh Hai, and the appointment of a new member to the Supervisory Board, Mr. Nguyen Hong Ha.

Substantial rubber land bank to be converted. Management stated during the AGM that in accordance with the upcoming 2021-2030 provincial masterplan for Binh Duong province, PHR could convert a total of ~10,900 ha of rubber land into land for other purposes (out of a total land bank of ~15,000 ha), which includes (1) ~4,700 ha for industrial parks, (2) ~1,000 ha for industrial clusters, (3) ~1,300 ha for residential area, (4) ~1,500 ha for high-tech agriculture development, (5) ~1,200 ha for infrastructure, and (6) ~950 ha for others. 

Contribution from IP segment to remain low in 2024 but could pick up in 2025. Currently, the Tan Binh IP of PHR has been fully occupied while PHR’s upcoming IP/IC projects are still  undergoing legal procedures. Among its notable upcoming projects, the Tan Lap 1 IP (200 ha of total site area; Binh Duong) is progressing for the 1/2000 masterplan and PHR aims to put this project into operation by 2025G. Meanwhile, PHR has yet to proceed with the plan to contribute 20% capital to VSIP III IP (1,000 ha of total site area; Binh Duong).  

Management anticipates that rubber prices will stay steady in H2 2024, maintaining the current level which is higher than in 2023. Per AGM documents, PHR guides for 2024G rubber consumption of 33,100 tons (+8% YoY) and 2024G rubber ASP of VND36.41mn/ton (+6% YoY compared to VND34.30mn/ton in 2023), implying an improving YoY outlook in this segment. Over the long run, PHR will convert a majority of its land bank to other purposes but aims to maintain a stable rubber consumption volume of around 30,000 tonnes/year, via increasing rubber latex purchases to offset the lower production volume of self-produced rubber latex volume.

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