PTB – Q4 2023 revenue exceeds expectation, PBT margin disappoints – Earnings Flash
  • 2024-01-24T00:00:00
  • Company Research
  • PTB announced preliminary 2023 results, in which revenue and PBT dropped 19% and 40% YoY, completing 107% and 92% of our forecasts, respectively. PTB has not yet disclosed its revenue and profit breakdown, nor commented on the preliminary results.
  • Q4 2023 revenue improved 32% QoQ. We believe there has been a QoQ improvement in core revenue (wooden furniture and stone sales), not only in low-margin auto dealership revenue.
  • However, Q4 2023 PBT dropped 26% QoQ. PBT margin compressed sharply from 7.9% in Q3 2023 to 4.5% in Q4 2023, hitting an eight-year low. We think this could be due to one-off SG&A or financial expenses as we believe GPM compression alone should not be substantial amid a recovery of revenue.
  • A potential one-off expense booked in Q4 2023 could have been a provision for bad debt. In September, Noble House filed for Chapter 11 bankruptcy in the US. This company accounted for 5%/12% of PTB’s 2022/H1 2023 wood revenue, respectively. PTB has suspended sales to Noble House, waiting for payment of a VND60bn outstanding receivable. In November, GigaCloud Technology acquired Noble House for USD85 million. PTB is negotiating its repayment schedule with GigaCloud.  
  • PTB guides for 2024 revenue and PBT to increase 9% and 15% YoY, equivalent to 100% and 73% of our 2024F, respectively. We note that PTB’s guidance is usually not a good leading indicator of its actual results.

PTB’s 2023 business results and 2024 business guidance

VND bn

Q4 2022

Q3 2023

Q4 2023

Q4 2023 YoY

2022

2023

YoY

2023 /2023F

2023F

2024G

Revenue

1,723

1,187

1,570

-22%

6,886

5,641

-19%

107%

5,289

6,175

  Wood

772

536

N/A

N/A

3,383

N/A

N/A

N/A

2,537

N/A

  Stone

507

417

N/A

N/A

1,707

N/A

N/A

N/A

1,714

N/A

  Real estate

47

7

N/A

N/A

406

N/A

N/A

N/A

65

N/A

  Other*

397

226

N/A

N/A

1391

N/A

N/A

N/A

974

N/A

Gross profit

334

262

N/A

N/A

1,541

N/A

N/A

N/A

1,142

N/A

Selling expenses

-134

-85

N/A

N/A

-562

N/A

N/A

N/A

-410

N/A

G&A 

-70

-45

N/A

N/A

-236

N/A

N/A

N/A

-211

N/A

EBIT

130

132

N/A

N/A

742

N/A

N/A

N/A

520

N/A

Non-ops

-40

-37

N/A

N/A

-131

N/A

N/A

N/A

-122

N/A

PBT

90

94

70

-36%

611

365

-40%

92%

398

420

NPAT-MI

78

77

N/A

N/A

487

N/A

N/A

N/A

327

N/A

Margins

 

 

 


 

 

 

 

 

 

GPM

19.4%

22.1%

N/A

 

22.4%

N/A

 

 

21.6%

 

EBIT margin

7.5%

11.1%

N/A

 

10.8%

N/A

 

 

9.8%

 

EBITDA margin

11.5%

26.2%

N/A

 

14.8%

N/A

 

 

15.0%

 

NPAT-MI margin

4.5%

6.5%

N/A

 

7.1%

N/A

 

 

6.2%

 

Source: PTB, Vietcap (* Including auto dealership revenue that has low profit margins)        

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