- 2024-01-31T00:00:00
- Company Research
- SIP announced Q4 2023 results with revenue of VND1.9tn (USD79mn; +33% YoY and +12% QoQ) and NPAT-MI of VN340bn (USD14mn; +13% YoY and +75% QoQ). The top-line YoY increase was mainly due to a 28% increase in revenue for the energy & water services segment while the bottom-line was supported by higher gross profit, financial income, and net income from affiliates.
- SIP’s 2023 revenue increased by 11% YoY to VND6.7tn (USD275mn) while its NPAT-MI edged down 2% YoY to VND956bn (USD39mn), fulfilling 107% and 117% of our respective forecasts. Pending a more extensive review, we foresee potential upside to our 2024F forecasts.
- Cash inflow from IP land sales in 2023 was 16% lower than our expectation at around VND622bn (USD26mn; -5% YoY), which we attribute to slower-than-expected IP land sales in 2023. SIP’s preliminary 2023 IP land sales were around 20 ha (per the company), compared to our full-year IP land sales forecast of 24 ha.
- Gross profit from the IP leasing segment in 2023, which accounted for 26% of the total gross profit, was up 2% YoY to VND238bn (USD9.8mn). We note that SIP purely applies the allocation method for revenue recognition of IP land sales, which does not fully reflect actual cash inflow from the IP land sales.
- Gross profit from utilities services — including water, electricity, and other services — (accounting for 67% of total gross profit) edged up 2% YoY to VND619bn (USD25mn) in 2023. We attribute the 2023 slow growth in utilities services to generally weaker manufacturing activities.
- Financial income increased by 10% YoY in 2023 to VND429bn (USD18mn) and was 15% ahead of our expectation mainly because of higher interest income from deposits and loans vs our previous projection.
- Net income from affiliates jumped 49% YoY in 2023 to VND126bn (USD5.2mn), completing 146% of our forecast. The strong increase was mainly driven by a 3.9x jump in the NPAT-MI of its 23.4%-owned affiliate Viet Nam Rubber Industrial Zone and Urban Development JSC (UPCoM: VRG) to VND195bn (USD8.0mn) thanks to an increase in its IP revenue.
SIP’s 2023 results
VND bn | Q4 2022 | Q4 2023 | YoY | 2022 | 2023 | YoY | 2023F | 2023 as % of 2023F |
Net revenue | 1,440 | 1,911 | 33% | 6,035 | 6,673 | 11% | 6,242 | 107% |
| 109 | 92 | -16% | 341 | 361 | 6% | 365 | 99% |
| 1,259 | 1,617 | 28% | 5,300 | 5,877 | 11% | 5,564 | 106% |
| 28 | 6 | -78% | 28 | 6 | -78% | 0 | N.M. |
| 44 | 196 | 349% | 366 | 429 | 17% | 313 | 137% |
Gross profit | 271 | 292 | 8% | 901 | 930 | 3% | 846 | 110% |
SG&A expenses | -29 | -34 | 19% | -107 | -110 | 3% | -107 | 103% |
EBIT | 242 | 257 | 7% | 794 | 820 | 3% | 739 | 111% |
Financial income | 106 | 130 | 23% | 390 | 429 | 10% | 375 | 115% |
Financial expense | -6 | -13 | 125% | -30 | -84 | 185% | -88 | 96% |
Net income from affiliates | 32 | 65 | 104% | 84 | 126 | 49% | 86 | 146% |
Net other income | 6 | 8 | 37% | 6 | 11 | 70% | 7 | 154% |
PBT | 379 | 447 | 18% | 1,246 | 1,301 | 4% | 1,120 | 116% |
NPAT-MI | 300 | 340 | 13% | 977 | 956 | -2% | 817 | 117% |
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GPM | 18.8% | 15.3% |
| 14.9% | 13.9% |
| 13.6% |
|
| 62.6% | 90.1% |
| 68.3% | 65.8% |
| 58.8% |
|
| 12.2% | 9.9% |
| 11.4% | 10.5% |
| 10.7% |
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OPM | 16.8% | 13.5% |
| 13.2% | 12.3% |
| 11.8% |
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NPM | 20.8% | 17.8% |
| 16.2% | 14.3% |
| 13.1% |
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Source: SIP, Vietcap forecast (last updated November 30, 2023)
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