- 2024-01-19T00:00:00
- Company Research
- HT1 reported NPAT-MI of 54bn (USD2.2mn) in Q4 2023. This result presents an improvement QoQ vs a VND10bn (USD0.4mn) net loss in Q3 2023, which was driven by 1) sales volume growth, 2) operating margin expansion, and 3) declining interest expenses.
- In Q4 2023, revenue was VND1.8tn (USD72.8mn; +13% QoQ & -23% YoY). HT1’s cement sales volume grew 17% QoQ from Q3 2023’s low base but fell 17% YoY as demand for construction materials gradually pick-up toward the year-end high season. We note that HT1’s Q3 2023 cement sales volume was the lowest quarterly sales level in the last five years (excluding the abnormally low level in Q3 2021 due to the COVID-19 pandemic). HT1’s FY2023 cement sales volume was 5.3 million tonnes, down 20% YoY.
- HT1’s Q4 2023 gross margin expanded to 10.1% vs 9.0% in Q3 2023 as sales volume improved. SG&A expenses as a percentage of sales also reduced QoQ to 6.0% in Q4 2023 vs 6.6% in Q3 2023, supporting QoQ improvement in HT1’s Q4 2023 operating margin. Nevertheless, Q4 2023 SG&A expenses as a percentage of sales remained at a high level YoY.
- HT1’s interest expenses fell by 32% QoQ as HT1 lowered its short-term debt level by 23% QoQ to VND1.6tn (USD64.4mn) at end-2023. HT1 had no long-term debt as of end-Q3 2023.
- For FY2023, HT1’s revenue was VND7.0tn (USD287.7mn; -21% YoY) and NPAT-MI of VND17bn (USD0.7mn; -93% YoY).
- As HT1’s FY2023 results trail our full-year forecast, we see potential downside risk to our forecast for HT1 (see more details in Vietcap IQ), pending a more comprehensive review.
HT1’s 2023 results
VND bn | Q4 2022 | Q3 2023 | Q4 2023 | QoQ | YoY | 2022 | 2023 | YoY | 2023 as of 2023F | 2023F |
Net revenue | 2,315 | 1,576 | 1,783 | 13% | -23% | 8,918 | 7,049 | -21% | 78% | 9,081 |
Gross profit | 210 | 142 | 180 | 26% | -14% | 892 | 604 | -32% | 64% | 942 |
SG&A expenses | -103 | -104 | -107 | 3% | 4% | -421 | -416 | -1% | 98% | -427 |
EBIT | 107 | 38 | 73 | 90% | -32% | 471 | 188 | -60% | 36% | 515 |
FX gain/loss | -2 | 0 | 0 | -37% | N.M. | -3 | 1 | N.M. | N.M. | 0 |
Non-operating gain/loss | -6 | -17 | 4 | N.M. | N.M. | -67 | -40 | -41% | 69% | -58 |
Interest expense | -27 | -32 | -22 | -32% | -20% | -76 | -124 | 62% | 119% | -104 |
PBT | 72 | -10 | 55 | N.M. | -23% | 324 | 25 | -92% | 7% | 353 |
NPAT-MI | 58 | -10 | 54 | N.M. | -6% | 258 | 17 | -93% | 6% | 283 |
Gross margin | 9.1% | 9.0% | 10.1% |
|
| 10.0% | 8.6% |
|
| 10.4% |
SG&A expenses | 4.4% | 6.6% | 6.0% |
|
| 4.7% | 5.9% |
|
| 4.7% |
EBIT margin | 4.6% | 2.4% | 4.1% |
|
| 5.3% | 2.7% |
|
| 5.7% |
NPAT-MI margin | 2.5% | -0.7% | 3.0% |
|
| 2.9% | 0.2% |
|
| 3.1% |
Source: HT1, Vietcap forecast (last updated April 3, 2023)
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