TDM - Robust Q1 2023 results thanks to BWE dividend income

TDM announced Q1 2023 results with revenue of VND101bn (USD4.3mn; -4% YoY) and reported NPAT of VND128bn (USD5.4mn; +3.1x YoY), which completed 19% and 38% of our respective full-year forecasts. The jump reported NPAT was due to TDM recording 2022 dividend income of VND94bn (USD4.0mn) from BWE.

We estimate Q1 2023 NPAT from water generation of VND34bn (USD1.5mn; -16% YoY), which completes 14% of our full-year forecast. The drop in NPAT from water generation is due to 4% YoY lower sales volume and 18% YoY higher financial expenses as TDM incurred VND2bn of guarantee fees for its loans.

Q1 2023 water sales volume declined 4% YoY to 14.6 million cbm, completing 19% of our full-year volume forecast for 79 million cbm (+13% YoY). We attribute the low volume to TDM changing the record date of its water meters from the 25^th to 20^th of each month.