- DHC announced Q2 2022 results with revenue and NPAT decreasing 8% YoY and 11% YoY, respectively. We attribute these results to weak demand from Vietnamese export businesses, FX losses and phased out tax incentives.

- H1 2022 revenue and NPAT-MI fulfilled 46% and 43% of our respective forecasts. We see potential downside risks to our forecasts, pending a fuller review. 

- In terms of segmental performances, paper revenue (90% of Q2 2022 total revenue) slid 8% mainly due to lower sales volume. Meanwhile, packaging revenue (10% of total revenue) slumped 17%. Paper demand did not improve because of weakened demand from developed economies that weighed on Vietnam’s export businesses.

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