- 2024-01-31T00:00:00
- Company Research
- VTP announced its Q4 2023 results with revenue of VND5.1tn (USD209mn; +7% QoQ & -3% YoY) and NPAT-MI of VND104bn (USD4.3mn; +1.7% QoQ), which showed improvement YoY as VTP incurred a VND1.2bn loss in Q4 2022. We attribute the YoY decrease in total revenue to the decline of the trading segment which was partly offset by resilient growth in the service segment. Moreover, we believe that the improvement in profitability was driven by a higher gross profit margin (fueled by both a change in revenue mix and higher service GPM) coupled with well-managed SG&A expenses.
- FY 2023 results show a revenue of VND19.6tn (USD802mn; -9% YoY) and NPAT-MI of VND380bn (USD16mn; +49% YoY), achieving 105% and 103% of our respective full-year forecasts. As VTP’s 2023 results are higher than our expectation and there are positive developments in the delivery service market recently that can tailwind VTP’s business performance in 2024, we see upside potential upside to our current projection, pending a more extensive review.
- Revenue mix pivots to the service segment with the contribution of the segment increasing to 59% of total revenue in Q4 2023 vs 45% in Q4 2022. We believe this is a positive development for VTP as the service segment was mainly contributed to by delivery business, which has a higher margin than trading business (7.8% GPM of service segment in Q4 2023 vs 0.2% GPM of trading segment in the quarter). In Q4 2023, service revenue increased 28% YoY.
- Gross profit margin of the service segment improved to 7.8% in Q4 2023 from 5.9% in Q4 2022 due to more efficient cost control with labor costs increasing 11% YoY, lower than the 28% YoY surge in service revenue. SG&A cost/service revenue also saw a 1.1 ppt improvement to 4.3% in Q4 2023.
VND bn | Q4 2022 | Q4 2023 | YoY | FY 2022 | FY 2023 | YoY | 2023 as % of 2023F |
Net revenue | 5,243 | 5,107 | -3% | 21,629 | 19,590 | -9% | 105% |
Gross profit | 143 | 240 | 67% | 647 | 876 | 35% | 98% |
SG&A expenses | -150 | -129 | -14% | -372 | -466 | 25% | 97% |
EBIT | -7 | 111 | N.M. | 275 | 410 | 49% | 99% |
PBT | 7 | 132 | 1670% | 329 | 479 | 45% | 103% |
NPAT-MI | -1 | 104 | N.M. | 256 | 380 | 49% | 103% |
Margins | Q4 2022 | Q4 2023 |
| FY 2022 | FY 2023 |
|
|
Gross margin | 2.7% | 4.7% |
| 3.0% | 4.5% |
|
|
EBIT margin | -0.1% | 2.2% |
| 1.3% | 2.1% |
|
|
NPAT-MI margin | 0.0% | 2.0% |
| 1.2% | 1.9% |
|
|
Source: VTP, Vietcap forecast
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