- 2025-01-24T00:00:00
- Company Research
- TV2 reported Q4 2024 revenue of VND444bn (-24% YoY) and NPAT-MI of VND23bn (+73% YoY). Strong growth in NPAT-MI was mainly driven by a 66% YoY reduction in financial expenses, as no provisions were made this year compared to provisions for the Tan Thuan wind power plant in Q4 2023. This improvement outweighed a 19% YoY decline in operating profit, which was impacted by a 27% YoY decrease in consultancy, EPC, and O&M revenue.
- For 2024, TV2 reported revenue of VND1.4tn (+26% YoY) and NPAT-MI of VND65bn (+23% YoY). NPAT-MI growth was driven by a 53% YoY reduction in financial expenses and a 32% YoY decrease in G&A expenses, which outweighed a 19% YoY decline in gross profit. The drop in gross profit was mainly due to a 21% YoY decrease in gross profit from consultancy, EPC, and O&M segments.
- TV2’s results achieved 96% of our revenue and 95% of our reported NPAT-MI forecasts. The slightly lower-than-expected NPAT-MI was primarily due to lower-than-expected GPM, which outweighed the benefits of lower-than-expected G&A and financial expenses. We see slight downside risk to our 2025 earnings forecasts pending further review.
- We currently have a MARKET PERFORM rating with a target price of VND32,200/share for TV2.
TV2’s 2024 results (VNDbn)
VNDbn | Q4 | Q4 | % YoY | 2023 | 2024 | % YoY | % of Vietcap’s 2024F |
Revenue | 581 | 444 | -24% | 1,061 | 1,336 | 26% | 96% |
Consultancy, EPC, O&M | 515 | 376 | -27% | 970 | 1,217 | 26% | 92% |
Mechanical manufacturing | 62 | 63 | 2% | 72 | 100 | 39% | 200% |
Selling electricity | 4 | 4 | 3% | 20 | 19 | -4% | 81% |
Others | 0 | 0 | N.M | 0 | 0 | 298% | 398% |
COGS | -443 | -379 | -14% | -824 | -1,143 | 39% | 98% |
Gross profit | 138 | 64 | -53% | 238 | 193 | -19% | 82% |
Consultancy, EPC, O&M | 127 | 56 | -56% | 225 | 178 | -21% | 78% |
Mechanical manufacturing | 7 | -17 | N.M. | 6 | 10 | 53% | 382% |
Selling electricity | 5 | 25 | 449% | 6 | 6 | -8% | 86% |
Others | 0 | 0 | N.M. | 0 | 0 | N.M. | 443% |
Sales and marketing exp | -2 | -2 | -4% | -2 | -6 | 219% | 92% |
G&A | -102 | -34 | -66% | -165 | -113 | -32% | 78% |
Operating profit | 35 | 28 | -19% | 71 | 75 | 6% | 88% |
Financial income | 8 | 6 | -16% | 26 | 20 | -25% | 110% |
Financial expenses | -26 | -9 | -66% | -33 | -16 | -53% | 89% |
In which: Interest expense | -2 | -2 | 11% | -7 | -8 | 18% | 93% |
Share profit/loss from associates | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M. |
Net other income/loss | 0 | 2 | N.M. | 1 | 1 | N.M. | N.M. |
Profit before tax | 17 | 28 | 68% | 66 | 80 | 22% | 94% |
Income Tax Expense | -3 | -5 | 47% | -12 | -15 | 20% | 88% |
NPAT | 13 | 23 | 73% | 53 | 65 | 23% | 95% |
Minority Interests | 0 | 0 | N.M. | 0 | 0 | N.M. | N.M. |
Reported NPAT-MI | 13 | 23 | 73% | 53 | 65 | 23% | 95% |
Source: TV2, Vietcap
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