SIP – Strong YoY growth in Q1 earnings, IP land sales, & cash inflows – Earnings Flash
  • 2024-05-02T00:00:00
  • Company Research
  • SIP announced its Q1 2024 results with revenue of VND1.8tn (USD73mn; +31% YoY) and NPAT-MI of VN246bn (USD10mn; +48% YoY), fulfilling 26% and 27% of our respective full-year forecasts. We anticipate no significant changes to our 2024F NPAT-MI forecast of VND915bn (USD37mn; flat YoY). 
  • The YoY increase in revenue and profit in Q1 2024 was mainly due to a YoY increase in revenue and gross margin of the utilities for IPs segment as manufacturing activities in SIP’s IPs recover/expand while electricity prices rise.
  • Financial income declined 33% YoY in Q1 2024, primarily due to a 45% YoY decrease in interest income which we mainly attribute to declining interest rates. 
  • Cash inflows from IP land sales surged to VND770bn in Q1 2024 (USD31mn; completing 77% of our full-year forecast) vs VND626bn (USD25mn) in full-year 2023. This positive cash inflow was mainly driven by IP land handovers to SEA Logistics Partners (SLP) in Q1 2024 in the Loc An Binh Son IP for a land plot of around 16 ha. We currently project 2024F IP land sales at 50 ha (compared to 2023 land sales of ~19 ha). 
  • Cash and cash equivalents at end-Q1 2024 was VND4.6tn (USD186mn; +29% YoY and +21% QoQ) while loans receivables (mostly to VCBS & CTS; both of which are brokerage houses owned by state-owned banks) stood at VND1.4tn (USD54mn; -17% YoY and +7% QoQ).

SIP’s Q1 2024 results  

VND bn

Q1

2023

Q1

2024

YoY

2024F

Q1 2024 as % of 2024F

Net revenue

1,394

1,826

31%

6,926

26%

     Industrial Park (IP)

92

94

3%

386

24%

     Utilities for IP

1,232

1,615

31%

6,148

26%

     Residential

0

0

N.M.

74

N.M.

     Others

70

117

66%

319

37%

Gross profit

233

272

17%

1,021

27%

SG&A expenses

-26

-25

-1%

-126

20%

EBIT

208

247

19%

896

28%

Financial income

97

65

-33%

320

20%

Financial expense

-102

-16

-84%

-92

18%

Net income from affiliates

20

16

-17%

109

15%

Net other income

7

4

-37%

8

52%

PBT

229

316

38%

1,240

26%

NPAT-MI

166

246

48%

915

27%

 






GPM

16.7%

14.9%


14.7%


     Industrial Park (IP)

69.0%

72.4%


66.3%


     Utility services for IP

13.5%

12.0%


10.9%


OPM

14.9%

13.5%


12.9%


NPM

11.9%

13.5%


13.2%


Source: SIP, Vietcap forecast (last updated March 15, 2024)

 

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