PHR – Q1 2024 net profit declines YoY, in line with our expectation – Earnings Flash
  • 2024-04-24T00:00:00
  • Company Research
  • PHR released its Q1 2024 results with revenue edging down 1% YoY to VND323bn (USD13mn) while NPAT-MI was down 68% YoY at VND73bn (USD2.9mn), achieving 23% and 18% of our respective 2024F full-year forecasts. The lower profit YoY was mainly because of the VND200bn (USD8.0mn) compensation income from VSIP III IP in Q1 2023 vs no such income in Q1 2024. 
  • Rubber & wood segment’s Q1 2024 gross profit jumped 83% YoY, which we attribute mainly to the significant recovery in rubber’s GPM and ASP. Meanwhile, based on the preliminary results released in March, total rubber consumption of PHR in Q1 2024 was down to ~4,400 tons (-21% YoY), which completed only 14% of our full-year forecast as Q1 is normally a low season for the rubber business. 
  • We anticipate no major changes to our 2024F NPAT-MI forecast of VND401bn (USD16mn; -35% YoY), pending a fuller review. We currently expect PHR to receive VND75bn (USD3.0mn) of compensation income from VSIP III IP as PHR is entitled to 20% of the gross profit that VSIP III IP generates from its 691 ha of converted rubber land (out of the total 1,000 ha for the VSIP III IP).

PHR’s Q1 2024 results 

VND bn 

Q1 

2023 

Q1  

2024 

YoY 

2024F 

Q1 2024 

as % of 2024F 

Net revenue 

326

323

-1%

1,419

23%

- Rubber & wood 

308

306

-1%

1,287

24%

- IP segment 

18

18

-2%

132

14%

Gross profit 

46

72

57%

292

25%

SG&A expenses 

-29

-29

1%

-131

22%

EBIT 

18

44

147%

161

27%

Financial income 

39

30

-25%

187

16%

       - Dividend 

0

0

N.M.

17

0%

Financial expense 

-5

-4

-13%

-30

15%

Net income from affiliates 

26

21

-18%

91

24%

Net other income 

205

0

N.M.

115

0%

       - Compensation 

200

0

N.M.

75

0%

       - Others 

5

0

N.M.

40

0%

PBT 

284

90

-68%

525

17%

NPAT-MI 

228

73

-68%

401

18%

     

 

 

 

 

 

GPM 

14.2%

22.4%

 

20.6%

 

- Rubber & wood 

10.4%

19.2%

 

15.0%

 

- IP segment 

78.2%

77.8%

 

74.9%

 

OPM 

5.4%

13.5%

 

11.4%

 

NPM 

69.9%

22.6%

 

28.2%

 

Source: PHR, Vietcap forecast (last updated March 21, 2024)

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