- DRC announced its Q1 2023 results with net revenue of VND1.1tn (USD47.4mn; -13% YoY) and NPAT-MI of VND25bn (USD1.1mn; -61% YoY), completing 22% and 7% of our respective full-year forecasts.
- We attribute the 13% YoY decrease in Q1 2023 revenue to 49% YoY lower bias tire revenue as a result of weak demand, which was partly offset by a 15% YoY increase in radial tire revenue.  
- We attribute the decrease in Q1 2023 NPAT-MI to (1) high input costs and (2) a decline in the contribution of domestic radial tire sales volume (this product has higher margins), which was partly offset by lower logistics expenses.