SCS - Solid profit growth in Q1; margins ahead of our forecast

SCS posted Q1 2022 results with revenue increasing 25% YoY to VND246bn (USD11mn) and NPAT-MI climbing 37% YoY to VND188bn (USD8.2mn). SCS’s NPM in Q1 2022 was 76% — ahead of our full-year 2022F forecast of 71% — which we attribute to a lower-than-expected YoY increase in labor expenses for the quarter.