- 2024-07-29T00:00:00
- Company Research
PHR’s H1 2024 revenue increased 36% YoY to VND595bn (USD23mn) while NPAT-MI declined 61% YoY to VND138bn (USD5.4mn). The YoY decline in H1 2024 NPAT-MI was mainly due to minimal other income from rubber tree liquidation or land compensation, which was partially offset by YoY higher revenue & GPM from the rubber & wood segment as rubber’s ASP increases.
Total net income from affiliate NTC (including distributed dividends that are recorded as financial income) was VND43bn (USD1.7mn; -16% YoY) in H1 2024. For H2 2024F, we expect PHR to record VND65bn (USD2.5mn) of income from NTC as we expect the Nam Tan Uyen 2 Expansion (NTU3 IP) to start IP land handovers.
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). This development trails our expectation as we previously anticipated VSIP III to contribute VND47bn (USD1.9mn; vs no such income in 2023) to PHR’s net income from affiliates in 2024F from its IP land sales.
Financial income declined 36% YoY in H1 2024 which was mainly due to a 25% YoY decrease in interest income to VND61bn (USD2.4mn; completing 51% of our full-year forecast).
There was minimal net other income in H1 2024. However, we anticipate higher net other income in H2 2024F from (1) land compensation of VSIP III (PHR is entitled to 20% of the profit made on VSIP III land sales as part of its rubber land compensation) as the contract to Pandora (~15 ha; announced in 2022) and new land sales made in 2023 have yet to be recognized, and (2) rubber tree liquidation.
For the rubber & wood segment, the 39% YoY surge in H1 2024 revenue and the 1.4-ppt gross margin expansion were broadly in line with our expectations for strong recovery in rubber’s margin and ASP.
Overall, we anticipate slight downside risk to our 2024F NPAT-MI forecast of VND401bn (USD16mn; -35% YoY) as the progress of capital contribution to VSIP III trails our expectation, pending a fuller review.
PHR’s H1 2024 results
VND bn | Q2 2023 | Q2 2024 | YoY | H1 2023 | H1 2024 | YoY | 2024F | H1 as % of 2024F |
Net revenue | 111 | 272 | 146% | 437 | 595 | 36% | 1,419 | 42% |
- Rubber & wood | 92 | 251 | 172% | 400 | 556 | 39% | 1,287 | 43% |
- IP segment | 19 | 21 | 15% | 37 | 39 | 7% | 132 | 30% |
Gross profit | 47 | 58 | 22% | 93 | 130 | 39% | 292 | 45% |
SG&A expenses | -25 | -27 | 12% | -53 | -56 | 6% | -131 | 43% |
EBIT | 23 | 30 | 32% | 40 | 74 | 82% | 161 | 46% |
Financial income | 61 | 35 | -42% | 100 | 64 | -36% | 187 | 34% |
- Dividend | 16 | 0 | N.M. | 16 | 0 | -99% | 63 | 0% |
Financial expense | -7 | -7 | -9% | -13 | -11 | -11% | -30 | 38% |
Net income from affiliates | 8 | 21 | 151% | 35 | 43 | 23% | 91 | 47% |
Net other income | 70 | 2 | -98% | 275 | 2 | -99% | 115 | 2% |
- Compensation | 0 | 0 | N.M. | 200 | 0 | -100% | 75 | 0% |
- Others | 70 | 2 | -98% | 75 | 2 | -98% | 40 | 5% |
PBT | 154 | 81 | -47% | 438 | 171 | -61% | 525 | 33% |
NPAT-MI | 122 | 65 | -47% | 350 | 138 | -61% | 401 | 34% |
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GPM | 42.6% | 21.2% |
| 21.4% | 21.8% |
| 20.6% |
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- Rubber & wood | 38.1% | 17.0% |
| 16.8% | 18.2% |
| 15.0% |
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- IP segment | 64.9% | 69.5% |
| 71.6% | 73.3% |
| 74.9% |
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OPM | 20.5% | 11.0% |
| 9.2% | 12.4% |
| 11.4% |
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NPM | 109.8% | 23.8% |
| 80.0% | 23.1% |
| 28.2% |
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Source: PHR, Vietcap forecast (last updated March 21, 2024)
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