PLC - Doubled NPAT led by strong asphalt, lubricants segments - Earnings Flash
  • 2025-04-28T00:00:00
  • Company Research
  • PLC reported Q1 2025 revenue of VND1.9tn (+20% YoY) and reported NPAT-MI of VND32bn (+106% YoY). The strong NPAT-MI growth was mainly driven by (1) 22% YoY growth in gross profit and (2) a 109% YoY surge in financial income, reflecting FX gains during the period.
  • Robust growth in gross profit was driven by the asphalt and lubricants segments. Lubricants remained the largest gross profit contributor, with gross profit growth of 29% YoY, supported by 10% YoY growth in revenue, supported by sales volume through Petrolimex channels rising 9% YoY and non-Petrolimex retail up 20% YoY, while GPM improved significantly (+3.7 ppts YoY) to 25.9%, due to lower input costs following an 8% YoY lower Brent oil price. Additionally, asphalt gross profit increased 23% YoY, mainly driven by revenue increasing 31% YoY, with market share recovering to 29.5%, and the accelerated disbursement of public investment projects.
  • We foresee insignificant changes to our earnings forecasts, as Q1 revenue and reported NPAT-MI achieved 25% and 28%, respectively, of our 2025 forecasts, in line with our expectations. 
  • We currently have a BUY rating with a target price of VND29,050/share, implying TSR of 25.2%. Please see our Initiation Report for more details.

Figure 1: PLC’s Q1 2025 results

VND bn

Q1 2024

Q1 2025

YoY

% of Vietcap’s
  2025F

Revenues

1,599

1,912

20%

25%

COGS

-1,395

-1,663

19%

26%

   In which, Depreciation expense

-24

-28

17%

28%

Gross profit

204

248

22%

25%

Sales & marketing exp

-133

-164

24%

27%

General admin exp

-30

-40

32%

27%

Operating profit (EBIT)

41

44

8%

18%

Financial income

10

22

109%

45%

Financial expenses

-30

-26

-15%

19%

In which, interest expenses

-18

-24

32%

26%

Share profit/loss from associates

0

0

N.M.

N.M.

Net other income/loss

0

0

86%

N.M.

PBT

21

40

91%

26%

Income tax expense

-5

-8

51%

22%

NPAT

15

32

106%

28%

Minority interest (MI)

0

0

N.M.

N.M.

NPAT-MI, reported

15

32

106%

28%

Source: PLC, Vietcap

Figure 2: PLC’s revenue, gross profit, and gross margin breakdown in Q1 2025

VND bn

Q1 2024

Q1 2025

YoY

% of Vietcap’s
  2025F

Revenue

1,599

1,912

20%

25%

Lubricants

419

462

10%

26%

Asphalt

702

919

31%

30%

Chemicals & solvents

465

517

11%

26%

Others

13

14

4%

28%

Gross Profit

204

248

22%

25%

Lubricants

93

120

29%

23%

Asphalt

77

94

23%

23%

Chemicals & solvents

33

33

1%

38%

Others

1

1

-7%

37%

 

 

 

Δ ppts

 

Gross profit margin %

12.7%

13.0%

+0.2

 

Lubricants

22.2%

25.9%

+3.7

 

Asphalt

10.9%

10.3%

-0.7

 

Chemicals & solvents

7.1%

6.4%

-0.7

 

Others

10.0%

9.0%

-1.0

 

Source: PLC, Vietcap

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