- 2024-01-29T00:00:00
- Company Research
- QNS announced 2023 results with revenue of VND10tn (USD414mn; +21% YoY) and NPAT-MI of VND2.2tn (USD90mn; +70% YoY), fulfilled 95% and 107% of our 2023F forecasts, respectively. In Q4 2023, revenue and NPAT-MI were VND2.3tn (USD94mn; +17% YoY) and VND654bn (USD27mn; 53% YoY), respectively. As 2023 earnings exceeded our forecasts, we see slight upside potential to our current projection, pending a fuller review.
- Sugar profitability expanded in 2023 on both price and volume jump. According to QNS, sugar volume grew 73% YoY in 2023 on top of an increase in QNS’s average selling price of 18% YoY, in our estimate. The strong growth of the price of sugar and volume in 2023 was mainly attributable to the rising fears of a sugar shortage in both global and domestic markets amid severe El Niño weather in Asia. As a result, QNS’s sugar GPM expanded 10.9 ppts YoY in 2023.
- Soy milk revenue decreased 7% YoY in 2023 as consumption remains weak. Soy milk selling volume in Vietnam dropped 9% YoY in 2023 and 16% YoY to 55 million liters in Q4 2023. This decrease was primarily driven by (1) a generally weak nutrition drink industry due to challenging economic conditions and (2) competition among Vietnamese milk producers in the plant-based milk market. In our estimate, COGS per soymilk unit increased 3% YoY in 2023 due to higher input material costs. Consequently, soy milk GPM decreased by 1.6 ppts YoY to 39.1% in 2023.
- The notable surge in others' gross profit primarily came from the biomass power segment, witnessing a strong 50% YoY increase in revenue in 2023. This growth was fueled by an elevated input volume of sugarcane bagasse, supported by a robust performance in the sugar business.
- QNS’s EBIT margin increased by 5.1 ppts YoY in 2023, which is backed by cost efficiency improvements in the sugar business as SG&A/sales decreased 1.4 ppts YoY. Non-operating profit, which is mainly income from bank deposits, doubled YoY in 2023 thanks to better interest deposit rates, which further bolstered net profit growth of 70% YoY.
QNS’s Q4 and 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | QoQ | 2022 | 2023 | YoY | 2023 as % of Vietcap's 2023F |
Revenue | 1,944 | 2,274 | 17% | -8% | 8,255 | 10,023 | 21% | 95% |
Soy milk | 915 | 896 | -2% | -21% | 4,305 | 4,003 | -7% | 96% |
Sugar | 523 | 911 | 74% | 0% | 1,973 | 4,038 | 105% | 93% |
Others(1) | 506 | 466 | -8% | 8% | 1,978 | 1,982 | 0% | 99% |
Gross profit | 586 | 904 | 54% | 5% | 2,459 | 3,357 | 37% | 102% |
Soy milk | 336 | 303 | -10% | -34% | 1,752 | 1,563 | -11% | 93% |
Sugar | 135 | 346 | 156% | 11% | 375 | 1,209 | 222% | 97% |
Others(1) | 115 | 255 | 123% | 190% | 332 | 585 | 76% | 165% |
Operating profit | 413 | 603 | 46% | 24% | 1,359 | 2,159 | 59% | 107% |
Non-operating profits | 85 | 132 | 56% | 73% | 147 | 293 | 100% | 117% |
PBT | 498 | 735 | 47% | 30% | 1,505 | 2,452 | 63% | 108% |
NPAT-MI | 429 | 654 | 53% | 29% | 1,287 | 2,189 | 70% | 107% |
|
| |||||||
GPM | 30.2% | 39.8% | 29.8% | 33.5% |
| |||
- Soy milk | 36.8% | 33.8% | 40.7% | 39.1% |
| |||
- Sugar | 25.8% | 38.0% | 19.0% | 29.9% |
| |||
EBIT margin | 21.3% | 26.5% | 16.5% | 21.5% |
| |||
NPM | 22.1% | 28.8% |
|
| 15.6% | 21.8% |
|
|
Source: QNS, Vietcap forecast; (1) include beer, confectionary, mineral water, and biomass power plant.
Powered by Froala Editor