VTP - Earnings curbed by product shortage, high fuel costs

- VTP announced its H1 2022 results with revenue of VND11tn (USD488mn; +9% YoY) and NPAT-MI of VND200bn (USD9mn; -7% YoY). The slide in bottom line was mainly due to (1) a shortage of Chinese-originated e-commerce products via border trade because of that country’s strict zero-COVID-19 policy, and (2) rising expenses from high fuel costs.

- VTP’s Q2 2022 revenue was VND5.4tn (USD237mn; +5% YoY) and its NPAT-MI was VND97bn (USD4.2mn; -9% YoY) — slightly down from the net profit of VND103bn (USD4.5mn) in Q1 2022.

- VTP’s H1 2022 revenue and NPAT-MI completed 48% and 58% of our respective forecasts. We see slight downside risk to our current projections mainly due to the lower-than-expected GPM of VTP’s service segment, pending fuller review.