SSI released consolidated results for H1 2023 with net profit of VND1.1tn (USD45mn; -5.1% YoY), completing 57.1% our FY2023 forecast. H1 2023 operating income (defined to include gains but not losses on the principal book) decreased 12.8% YoY to VND3.2tn (USD134mn) with gains from FVTPL as the key growth driver, which completed 48.8% of our full-year forecast. Meanwhile, H1 2023 operating expenses decreased by 43.4% YoY and completed 33.4% of our full-year forecast mainly thanks to a lower-than-expected loss from FVTPL. Q2 2023 NPAT was VND567bn (+12.8% QoQ; +34.7% YoY). We foresee potential upside to our earnings forecasts for SSI, pending a more extensive review.

- H1 2023 consolidated PBT from principal investment increased 266% YoY, accounting for 59.1% of SSI’s PBT. Q2 2023 consolidated PBT from principal investment decreased 4.0% QoQ, accounting for 54.2% of SSI’s PBT.

- H1 2023 gains from HTM investments (which include deposits and certificates of deposit with terms of less than one year) decreased 3.1% YoY despite higher yields following increased interest rates as there was a 35.1% YoY decrease in the average HTM balance.

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