PHR - 9M 2024 earnings decline due to minimal IP land handovers, compensation income - Earnings Flash
  • 2024-10-31T00:00:00
  • Company Research
  • PHR’s 9M 2024 revenue increased 13% YoY to VND1.0tn (USD40mn) but NPAT-MI plunged 50% YoY to VND236bn (USD9.4mn). The YoY decline in 9M 2024 NPAT-MI was mainly due to minimal other income from rubber tree liquidation and land compensation, which were partially offset by YoY higher revenue and GPM from the rubber and wood segment as rubber’s ASP increased. We anticipate no significant changes to our 2024F NPAT-MI forecasts of VND340bn (USD14mn; -45% YoY), pending a fuller review.
  • The rubber and wood segment’s revenue increased 44% YoY to VND945bn (USD38mn) in 9M 2024, which was mainly driven by strong YoY increases in the rubber ASP. PHR’s rubber price was around VND50mn/tonne in September 2024, compared to 2023’s ASP of VND35mn/tonne. 
  • The total of financial income, net income from affiliates, and net other income in 9M 2024 was VND178bn (USD7.1mn; -62% YoY), achieving 58% of our full-year forecast. We anticipate PHR to record compensation income of around VND58bn (USD2.3mn; vs no such income in 9M 2024) in Q4 2024F from land sales at VSIP III (PHR is entitled to 20% of the profit made on VSIP III land sales as part of its rubber land compensation). Cumulatively, PHR has recognized compensation for ~44 ha of land sales at VSIP III (out of ~80 ha sold in 2022-23). 

PHR’s 9M 2024 results 

VND bn 

Q3 2023 

Q3 2024 

YoY 

9M 2023 

9M 2024 

YoY 

2024F 

9M as % of 2024F 

Net revenue 

453

412

-9%

890

1,007

13%

1,550

65%

   - Rubber & wood 

257

389

51%

657

945

44%

1,460

65%

   - IP segment 

196

23

-88%

233

62

-73%

89

70%

Gross profit 

149

83

-44%

242

213

-12%

309

69%

SG&A expenses 

-36

-30

-16%

-89

-87

-3%

-143

61%

EBIT 

113

52

-54%

153

126

-18%

167

76%

Financial income 

36

47

31%

136

111

-18%

175

64%

   -  Dividend  

0

17

N.M.

16

17

6%

47

37%

Financial expense 

-3

-5

47%

-16

-16

1%

-28

57%

Net income from affiliates 

25

21

-16%

60

64

6%

35

185%

Net other income 

0

1

N.M.

275

3

-99%

98

3%

   - Compensation 

0

0

N.M.

200

0

-100%

58

0%

   - Others 

0

1

N.M.

75

3

-96%

40

7%

PBT 

170

116

-32%

608

287

-53%

446

64%

NPAT-MI 

121

98

-19%

471

236

-50%

340

69%

 

 

 

 

 

 

 

 

 

GPM 

32.9%

20.1%

 

27.2%

21.1%

 

20.0%

 

  -   Rubber & wood 

1.9%

16.7%

 

11.0%

17.6%

 

17.0%

 

  -   IP segment 

73.3%

77.2%

 

73.0%

74.7%

 

74.9%

 

OPM 

24.9%

12.7%

 

17.2%

12.5%

 

10.8%

 

NPM 

26.8%

23.9%

 

52.9%

23.4%

 

21.9%

 

Source: PHR, Vietcap forecast (last updated October 7, 2024)  

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