- TDM released its Q4 2022 results with revenue of VND126bn (+11%YoY) and water generation NPAT of VND74bn (+108% YoY). Moreover, the company’s 2022 results were solid with revenue of VND479bn (+15% YoY) and water generation NPAT of VND220bn (+56% YoY). We attribute these results to resilient 2022 sales volume of 69.3 million cbm (+9% YoY), ASP increasing 6% YoY and lower SGA expenses vs 2021’s high base that was due to costs of medical supplies.

- The discrepancy between top-line growth of 15% YoY and the 33% YoY decline in reported NPAT was mainly due to a lack of dividend income from BIWASE (HOSE: BWE) as that company advanced its 2021 dividend payment at the end of 2021.

- Overall, TDM’s 2022 results are in line with our expectations as revenue and reported NPAT completed 100% and 108% our respective full-year forecasts.

We attribute the solid revenue in Q4 2022 to resilient sales volume of 18.2 million cbm (+7% YoY & +2% QoQ) that was mainly from residential demand in Di An Ward. We note that sales volume growth slowed as December 2022’s sales volume was 6.6 million cbm (+1% MoM), which implies sluggish manufacturing activities in Binh Duong Province.

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