PTB - Wood segment continues driving revenue growth - Earnings Flash
  • 2024-10-30T00:00:00
  • Company Research
  • PTB’s Q3 2024 results showed revenue and NPAT-MI down 8%/28% QoQ, respectively, but up 25%/4% YoY. For 9M 2024, revenue and NPAT-MI grew 11% and 14% YoY, fulfilling 69% and 58% of our respective 2024 full-year forecasts. We anticipate downside risk to our forecast, pending a fuller review. 
  • In Q3 2024, wood revenue continued to deliver strong growth with a 41% YoY increase. We also note that wood segment revenue declined 15% QoQ due to the seasonality factor as Q3 is normally the low season for wood exports. Additionally, the stone segment faced challenges due to fierce competition and delayed order deliveries amid high shipping costs, resulting in weaker-than-expected performance. Per management, PTB is operating at full capacity for wood and around 80% utilization for quartz stone.
  • In Q3 2024, GPM narrowed to 19.3%, down from 22.1% in Q3 2023 and 20.2% in Q2 2024. The blended GPM contraction was mainly due to the stone segment’s weak performance, with its GPM dropping to 10.3% in Q3 2024 from the typical ~28%, which is normally higher than the wood segment’s GPM of ~22%.
  • PTB begun supplying paving stone for Noi Bai Terminal 2, with a total value of VND100bn. Management expects this to be completed by Q2 2025. We expect revenue recognition for this project starting in Q1 2025.
  • PTB guides for Q4 2024 revenue and PBT to increase 13% and 46% YoY, respectively, reflecting a recovery from Q4 2023’s low base, which was impacted by the Noble House bankruptcy. We maintain our expectation for continued recovery, driven by (1) US retailers’ restocking of wooden furniture in response to lower US mortgage rates boosting home sales, and (2) improved quartz stone exports. 

PTB’s 9M 2024 results

 

Q3 2023

Q2 2024

Q3 2024

QoQ

YoY

9M 2023

9M 2024

YoY

9M as % of 2024F

2024F

Revenue

1,187

1,608

1,485

-8%

25%

4,071

4,530

11%

69%

6,598

- Wood

536

890

756

-15%

41%

2,002

2,549

27%

72%

3,537

- Stone

417

464

453

-2%

9%

1,294

1,309

1%

65%

2,005

- Real estate

7

12

7

-44%

-4%

39

30

-25%

33%

90

- Other

226

243

270

11%

19%

734

643

-12%

67%

964

Gross profit

262

324

287

-12%

9%

874

914

5%

61%

1,509

Selling expenses

-85

-122

-106

-13%

25%

-312

-349

12%

64%

-547

G&A expenses

-45

-59

-58

-3%

27%

-167

-178

6%

64%

-275

Operating profit

132

143

123

-14%

-7%

395

388

-2%

56%

687

Non-operating items

-37

-5

-20

319%

-45%

-100

-38

-62%

51%

-75

PBT

94

138

102

-26%

8%

295

350

19%

57%

612

NPAT-MI

77

111

80

-28%

4%

245

279

14%

58%

481

GPM

22.1%

20.2%

19.3%

 

 

21.5%

20.2%

 

 

22.9%

OPM

11.1%

8.9%

8.3%

 

 

9.7%

8.6%

 

 

10.4%

PBT margin

8.0%

8.6%

6.9%

 

 

7.2%

7.7%

 

 

9.3%

EBITDA margin

16.1%

12.9%

12.5%

 

 

9.4%

12.7%

 

 

14.0%

NPAT-MI margin

6.5%

6.9%

5.4%

 

 

6.0%

6.2%

 

 

7.3%

Source: PTB, Vietcap

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